NIKE (NYSE:NKE) Rating Increased to Strong Sell at BMO Capital Markets

BMO Capital Markets upgraded shares of NIKE (NYSE:NKE) to a strong sell rating in a research note released on Tuesday,Zacks reports.

Several other research firms have also recently issued reports on NKE. Zacks Research raised shares of NIKE from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 19th. Barclays cut their price target on shares of NIKE from $67.00 to $52.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 1st. Berenberg Bank set a $49.00 price target on shares of NIKE and gave the company a “hold” rating in a report on Friday, July 3rd. Royal Bank Of Canada reissued a “sector perform” rating and set a $45.00 price objective on shares of NIKE in a research note on Tuesday, August 25th. Finally, Wells Fargo & Company dropped their price objective on NIKE from $45.00 to $40.00 and set an “equal weight” rating for the company in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty have given a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $50.12.

NIKE Price Performance

Shares of NYSE:NKE opened at $36.57 on Tuesday. The company has a market cap of $54.25 billion, a P/E ratio of 17.50, a P/E/G ratio of 1.83 and a beta of 1.10. The business has a fifty day simple moving average of $41.19 and a 200-day simple moving average of $45.38. NIKE has a 52 week low of $36.55 and a 52 week high of $76.97. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40.

NIKE (NYSE:NKE) last released its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm had revenue of $10.97 billion for the quarter, compared to the consensus estimate of $10.85 billion. During the same period in the prior year, the business posted $0.14 earnings per share. The firm’s revenue for the quarter was down 1.1% compared to the same quarter last year. Equities research analysts forecast that NIKE will post 1.74 EPS for the current year.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.5%. The ex-dividend date is Tuesday, September 1st. NIKE’s dividend payout ratio is currently 78.47%.

Insider Buying and Selling

In other NIKE news, EVP Philip McCartney sold 2,559 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the transaction, the executive vice president directly owned 78,121 shares of the company’s stock, valued at $2,936,568.39. This trade represents a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the business’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $137,992.89. Following the transaction, the chief operating officer owned 104,862 shares in the company, valued at approximately $3,941,762.58. This represents a 3.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Main Street Financial Solutions LLC boosted its holdings in NIKE by 4.2% in the 2nd quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock worth $244,000 after buying an additional 139 shares during the last quarter. ANB Bank raised its holdings in shares of NIKE by 0.7% during the fourth quarter. ANB Bank now owns 25,451 shares of the footwear maker’s stock valued at $1,621,000 after acquiring an additional 165 shares during the last quarter. Cornerstone Wealth Management LLC raised its holdings in shares of NIKE by 4.4% during the fourth quarter. Cornerstone Wealth Management LLC now owns 3,970 shares of the footwear maker’s stock valued at $253,000 after acquiring an additional 169 shares during the last quarter. Blue Bell Private Wealth Management LLC raised its holdings in shares of NIKE by 14.1% during the fourth quarter. Blue Bell Private Wealth Management LLC now owns 1,416 shares of the footwear maker’s stock valued at $90,000 after acquiring an additional 175 shares during the last quarter. Finally, Laird Norton Wetherby Wealth Management LLC lifted its position in shares of NIKE by 0.8% in the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 23,293 shares of the footwear maker’s stock valued at $1,624,000 after acquiring an additional 181 shares in the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Neutral Sentiment: Shareholders approved an expanded employee stock purchase plan adopted by NIKE’s board in July. The plan could support employee retention, although the potential for additional share issuance may limit its benefit to existing investors. Nike Shareholders Approve Expanded Employee Stock Purchase Plan
• Neutral Sentiment: Some commentary argues that NIKE’s underlying business is not fundamentally broken and that its depressed valuation and dividend yield could appeal to long-term investors, though a turnaround remains necessary. Nike: The Sentiment Is Bleak, But The Underlying Business Is Not Broken
• Negative Sentiment: Morgan Stanley warned that the pain may not be over, citing persistent operating weakness, disappointing share performance and NIKE’s imminent removal from the S&P 100. Morgan Stanley Says the Pain May Not Be Over Yet
• Negative Sentiment: BMO initiated coverage with an Underperform rating, pointing to challenges facing NIKE and the broader athletic-apparel market. The new bearish call adds to pressure on the stock. BMO Says Sell Nike Stock
• Negative Sentiment: NIKE is set to lose its S&P 100 membership after nearly 18 years, a high-profile consequence of its severe decline that could reduce index-related demand and reinforce negative sentiment. Nike Loses Its S&P 100 Membership
• Negative Sentiment: Analysts continue to cite shifting consumer preferences, intense competition and NIKE’s broad product and market exposure as structural challenges, leaving investors concerned that a recovery could take time. Shifting Consumer Preferences Continue to Impact Nike and Lululemon

NIKE Company Profile

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.