NIKE (NYSE:NKE) Trading Down 2.9% – Should You Sell?

NIKE, Inc. (NYSE:NKE) shares traded down 2.9% during trading on Tuesday . The stock traded as low as $62.88 and last traded at $63.1080. 13,488,220 shares changed hands during trading, a decline of 20% from the average session volume of 16,805,730 shares. The stock had previously closed at $64.99.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: BTIG reaffirmed a “buy” rating and a $100 price target on NKE, signaling strong upside from some sell‑side analysts and providing a counterweight to the negative headlines. BTIG Buy Rating
• Positive Sentiment: Insider buying noted in recent coverage (CEO/management purchases referenced by retail commentary) is supporting the view that leadership is confident in the turnaround, which can help investor sentiment. Is It a Buy?
• Neutral Sentiment: Value comparisons with peers (Adidas/ADDYY) are getting attention as investors reassess NKE’s valuation vs. competitors; these pieces frame NKE as either a relative value or show headroom depending on metrics used. ADDYY or NKE Value Comparison
• Neutral Sentiment: Fundamentals reminder: Nike beat consensus in its December quarter on EPS and revenue, but growth remains modest — the recent beat provides some support but hasn’t fully offset execution concerns. (Company quarterly results Dec. 18)
• Negative Sentiment: Nike is cutting roughly 775 U.S. distribution‑center jobs as it accelerates automation; while intended to boost long‑term margins, the layoffs raise short‑term disruption and execution risk and are weighing on sentiment. Reuters: 775 Jobs Cut
• Negative Sentiment: Coverage highlights the layoffs’ operational implications and investor nervousness — stories note the cuts affect Tennessee and Mississippi distribution centers and represent about 1% of the workforce. WSJ: Layoffs Coverage
• Negative Sentiment: Nike is investigating claims of a large data leak by a ransomware group; a potential breach raises near‑term legal, remediation and reputational costs and is adding to downside pressure. Reuters: Data Breach Investigation

Analyst Ratings Changes

Several brokerages recently weighed in on NKE. Royal Bank Of Canada restated a “buy” rating on shares of NIKE in a report on Wednesday, January 21st. Robert W. Baird cut their price target on NIKE from $93.00 to $85.00 and set an “outperform” rating on the stock in a research note on Friday, December 19th. UBS Group reiterated a “neutral” rating on shares of NIKE in a report on Monday, January 5th. Daiwa Capital Markets cut their price target on NIKE from $75.00 to $61.00 in a report on Tuesday, December 23rd. Finally, Weiss Ratings upgraded NIKE from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, January 12th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $74.65.

NIKE Stock Performance

The company has a quick ratio of 1.40, a current ratio of 2.06 and a debt-to-equity ratio of 0.50. The stock’s fifty day moving average is $63.96 and its two-hundred day moving average is $68.92. The firm has a market capitalization of $93.42 billion, a price-to-earnings ratio of 37.12, a P/E/G ratio of 3.38 and a beta of 1.28.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Thursday, December 18th. The footwear maker reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.16. The company had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $12.19 billion. NIKE had a net margin of 5.43% and a return on equity of 18.43%. The company’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter last year, the firm posted $0.78 EPS. On average, analysts predict that NIKE, Inc. will post 2.05 earnings per share for the current year.

NIKE Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 1st were paid a dividend of $0.41 per share. The ex-dividend date was Monday, December 1st. This represents a $1.64 annualized dividend and a dividend yield of 2.6%. This is an increase from NIKE’s previous quarterly dividend of $0.40. NIKE’s dividend payout ratio is presently 96.47%.

Insiders Place Their Bets

In related news, Director Timothy D. Cook bought 50,000 shares of NIKE stock in a transaction that occurred on Monday, December 22nd. The stock was acquired at an average price of $58.97 per share, with a total value of $2,948,500.00. Following the acquisition, the director owned 105,480 shares of the company’s stock, valued at approximately $6,220,155.60. This represents a 90.12% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Elliott Hill purchased 16,388 shares of the firm’s stock in a transaction that occurred on Monday, December 29th. The stock was bought at an average price of $61.10 per share, for a total transaction of $1,001,306.80. Following the purchase, the chief executive officer owned 241,587 shares in the company, valued at $14,760,965.70. The trade was a 7.28% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased 91,229 shares of company stock worth $5,452,640 in the last quarter. Company insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On NIKE

Institutional investors have recently made changes to their positions in the company. Mascoma Wealth Management LLC bought a new position in shares of NIKE during the second quarter worth approximately $26,000. Halbert Hargrove Global Advisors LLC grew its holdings in NIKE by 952.6% in the 2nd quarter. Halbert Hargrove Global Advisors LLC now owns 400 shares of the footwear maker’s stock valued at $28,000 after buying an additional 362 shares in the last quarter. Twin Peaks Wealth Advisors LLC bought a new position in NIKE during the 2nd quarter worth $31,000. Guerra Advisors Inc acquired a new stake in shares of NIKE during the third quarter worth $34,000. Finally, Gordian Capital Singapore Pte Ltd acquired a new stake in shares of NIKE during the third quarter worth $35,000. Institutional investors own 64.25% of the company’s stock.

NIKE Company Profile

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).