NIKE (NYSE:NKE) Hits New 52-Week Low – Should You Sell?

NIKE, Inc. (NYSE:NKE)’s share price reached a new 52-week low during trading on Monday . The stock traded as low as $39.46 and last traded at $39.5090, with a volume of 9866331 shares trading hands. The stock had previously closed at $40.73.

Analyst Upgrades and Downgrades

NKE has been the topic of a number of recent research reports. CICC Research lowered their target price on NIKE from $58.00 to $44.80 and set a “neutral” rating on the stock in a research note on Thursday, July 2nd. Oppenheimer decreased their price objective on NIKE from $120.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, June 26th. Telsey Advisory Group set a $47.00 price objective on NIKE and gave the stock a “market perform” rating in a research report on Wednesday, July 1st. Rothschild & Co Redburn dropped their target price on NIKE from $45.00 to $37.00 and set a “sell” rating for the company in a report on Friday, July 17th. Finally, Robert W. Baird reissued an “outperform” rating and set a $70.00 target price on shares of NIKE in a report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eighteen have given a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $53.53.

NIKE Stock Performance

The stock’s fifty day moving average price is $42.90 and its two-hundred day moving average price is $48.61. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The company has a market cap of $57.84 billion, a P/E ratio of 18.66, a P/E/G ratio of 1.81 and a beta of 1.11.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The business had revenue of $10.97 billion for the quarter, compared to analysts’ expectations of $10.85 billion. During the same period last year, the firm posted $0.14 earnings per share. The firm’s quarterly revenue was down 1.1% compared to the same quarter last year. As a group, equities analysts predict that NIKE, Inc. will post 1.74 earnings per share for the current year.

NIKE Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE’s dividend payout ratio (DPR) is currently 78.47%.

Insiders Place Their Bets

In other news, EVP Philip Mccartney sold 17,398 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the transaction, the executive vice president owned 53,133 shares of the company’s stock, valued at approximately $2,453,681.94. The trade was a 24.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Venkatesh Alagirisamy sold 890 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $37,024.00. Following the sale, the chief operating officer owned 74,820 shares of the company’s stock, valued at approximately $3,112,512. This represents a 1.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 26,142 shares of company stock worth $1,169,380. 1.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Westerkirk Capital Inc. lifted its position in shares of NIKE by 52.4% during the fourth quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker’s stock worth $8,360,000 after acquiring an additional 45,100 shares in the last quarter. OMERS ADMINISTRATION Corp increased its position in shares of NIKE by 77.9% during the fourth quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker’s stock valued at $160,943,000 after buying an additional 1,106,499 shares during the period. PFA Pension Forsikringsaktieselskab purchased a new stake in shares of NIKE in the fourth quarter worth about $43,188,000. OneDigital Investment Advisors LLC lifted its holdings in shares of NIKE by 32.8% in the second quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker’s stock worth $10,028,000 after buying an additional 60,375 shares in the last quarter. Finally, Nicholas Company Inc. boosted its position in shares of NIKE by 33.3% in the fourth quarter. Nicholas Company Inc. now owns 123,652 shares of the footwear maker’s stock valued at $7,878,000 after acquiring an additional 30,890 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.

About NIKE

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).