Evercore Issues Pessimistic Forecast for NIKE (NYSE:NKE) Stock Price

NIKE (NYSE:NKE) had its price objective lowered by equities researchers at Evercore from $46.00 to $34.00 in a report released on Monday. Evercore’s price objective indicates a potential downside of 5.18% from the stock’s previous close.

A number of other brokerages have also recently issued reports on NKE. HSBC decreased their target price on NIKE from $48.00 to $40.00 and set a “hold” rating on the stock in a report on Monday. Stifel Nicolaus set a $40.00 price target on NIKE and gave the company a “hold” rating in a research report on Monday, September 21st. JPMorgan Chase & Co. reissued a “sell” rating on shares of NIKE in a research note on Monday, August 31st. Oppenheimer set a $52.00 price objective on NIKE and gave the stock an “outperform” rating in a report on Wednesday, September 23rd. Finally, BMO Capital Markets initiated coverage on shares of NIKE in a research note on Tuesday, September 8th. They set an “underperform” rating and a $30.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have given a Hold rating and seven have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $46.62.

NIKE Trading Down 1.5%

NIKE stock opened at $35.86 on Monday. 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 firm has a market cap of $53.19 billion, a price-to-earnings ratio of 17.16, a price-to-earnings-growth ratio of 2.03 and a beta of 1.10. NIKE has a 1 year low of $35.22 and a 1 year high of $76.97. The firm’s 50 day moving average price is $39.29 and its two-hundred day moving average price is $43.20.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.09. The company had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The company’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.14 EPS. On average, research analysts predict that NIKE will post 1.65 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Matthew Friend sold 2,463 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the sale, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at $3,418,064. This represents a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Venkatesh Alagirisamy sold 3,671 shares of the firm’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the sale, the chief operating officer owned 104,862 shares of the company’s stock, valued at approximately $3,941,762.58. This represents a 3.38% 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. Over the last quarter, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is owned by insiders.

Institutional Investors Weigh In On NIKE

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. J. Stern & Co. LLP grew its holdings in shares of NIKE by 49,010.4% during the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock valued at $3,061,555,000 after acquiring an additional 47,956,692 shares in the last quarter. Flossbach Von Storch SE acquired a new stake in NIKE during the second quarter valued at $488,714,000. Capital World Investors boosted its position in NIKE by 16.2% during the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock valued at $3,126,246,000 after purchasing an additional 6,830,938 shares during the last quarter. State Street Corp grew its stake in NIKE by 6.8% in the second quarter. State Street Corp now owns 63,598,789 shares of the footwear maker’s stock valued at $2,636,104,000 after purchasing an additional 4,052,428 shares in the last quarter. Finally, Capital International Investors grew its stake in NIKE by 83.3% in the fourth quarter. Capital International Investors now owns 7,642,382 shares of the footwear maker’s stock valued at $486,895,000 after purchasing an additional 3,472,515 shares in the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

Key Headlines Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jefferies expects Nike to deliver a first-quarter earnings beat, citing stabilization in North America and wholesale, better inventory levels and earlier gross-margin improvement. The firm also sees November’s investor day as a possible turnaround catalyst. Nike set for Q1 beat as margins improve, Jefferies says
• Positive Sentiment: New footwear launches and Nike’s “Sport Offense” strategy could help rebuild Sportswear momentum, although digital weakness and discounting remain obstacles. Will New Footwear Launches Help Nike Rebuild Sportswear Momentum?
• Positive Sentiment: Some bullish investors argue that the stock’s steep decline has already priced in substantial problems, creating potential long-term upside if management successfully restores growth, margins and brand momentum. Options positioning was also described as relatively optimistic ahead of earnings. Nike Stock Is at Rock Bottom. It Can Double From Here, Analyst Says.
• Neutral Sentiment: Investors are focused on Thursday’s earnings report, with the size of the implied move elevated because the results and management’s guidance could reset expectations for the turnaround. Key items include China sales, wholesale demand, inventories, promotions and gross margins. Here’s How Much Nike Stock Is Expected to Move After Earnings
• Neutral Sentiment: Nike’s appointment of Alexandre Arnault, a senior LVMH executive, to its board adds luxury-brand and international consumer expertise, but the financial impact is uncertain. Nike Brings Alexandre Arnault Onto Its Board
• Negative Sentiment: Analysts continue cutting targets ahead of earnings: RBC lowered its target to $40, while Evercore cut to $34, Deutsche Bank to $37, HSBC to $40 and Piper Sandler to $38. The revisions reflect expectations for a slower recovery and leave many firms at neutral or hold ratings.
• Negative Sentiment: Weak Chinese demand, retailer order pullbacks and intense competition are weighing on sales. Nike is overhauling its China strategy to reduce discounting and rebuild its premium positioning, but the market remains a major turnaround risk. Nike Overhauls Its China Strategy
• Negative Sentiment: Shares have fallen sharply and are near a 12- to 13-year low, while analysts warn that promotional pressure, digital weakness, margin compression and a shrinking competitive advantage could make the recovery more prolonged. Nike Stock Hovers Near Annual Lows Amid Analyst Downgrades

About NIKE

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.