Royal Bank Of Canada Has Lowered Expectations for NIKE (NYSE:NKE) Stock Price

NIKE (NYSE:NKE) had its price objective decreased by investment analysts at Royal Bank Of Canada from $40.00 to $39.00 in a report issued on Friday, Benzinga reports. The brokerage currently has a “sector perform” rating on the footwear maker’s stock. Royal Bank Of Canada‘s price target suggests a potential upside of 0.63% from the stock’s previous close.

A number of other equities research analysts have also issued reports on NKE. DZ Bank lowered NIKE from a “strong-buy” rating to a “strong sell” rating in a research note on Friday, October 2nd. BTIG Research reaffirmed a “buy” rating and issued a $50.00 price objective on shares of NIKE in a research report on Thursday, October 22nd. Wolfe Research began coverage on NIKE in a research note on Wednesday, October 21st. They issued an “underperform” rating and a $28.00 target price on the stock. BNP Paribas Exane set a $19.00 target price on NIKE and gave the stock an “underperform” rating in a research report on Friday, October 2nd. Finally, Morgan Stanley set a $27.00 target price on shares of NIKE and gave the company an “underweight” rating in a research note on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty have assigned a Hold rating and twelve have assigned a Sell rating to the company’s stock. According to data from MarketBeat, NIKE presently has an average rating of “Reduce” and an average price target of $40.91.

NIKE Trading Down 2.0%

NYSE NKE traded down $0.81 during trading on Friday, hitting $38.75. The stock had a trading volume of 12,284,096 shares, compared to its average volume of 24,653,066. NIKE has a one year low of $31.97 and a one year high of $69.14. The stock has a 50 day simple moving average of $36.90 and a 200 day simple moving average of $45.76. The stock has a market capitalization of $57.56 billion, a price-to-earnings ratio of 18.65, a P/E/G ratio of 4.73 and a beta of 1.01. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07.

NIKE (NYSE:NKE) last released its earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.05. The firm had revenue of $11.21 billion for the quarter, compared to analysts’ expectations of $11.32 billion. NIKE had a return on equity of 15.94% and a net margin of 6.74%. The company’s quarterly revenue was down 4.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Sell-side analysts predict that NIKE will post 1.22 earnings per share for the current year.

Insider Buying and Selling at NIKE

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

Institutional Trading of NIKE

Institutional investors and hedge funds have recently made changes to their positions in the company. Scarborough Advisors LLC bought a new position in shares of NIKE during the first quarter valued at approximately $25,000. Meeder Asset Management Inc. raised its stake in NIKE by 108.4% in the first quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after buying an additional 285 shares in the last quarter. Atlas Wealth LLC purchased a new stake in NIKE during the first quarter worth $31,000. Main Street Group LTD purchased a new stake in NIKE during the first quarter worth $36,000. Finally, Reyes Financial Architecture Inc. bought a new stake in NIKE during the 3rd quarter valued at $26,000. 64.25% of the stock is currently owned by institutional investors.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE has gained traction in performance categories and North America, while its product reset aims to support innovation and full-price sales. Its $2.5 billion Pace savings plan could also help longer-term profitability. Article: NIKE Gains 13.9% in a Month: Is the Turnaround Rally Sustainable? Article: NIKE’s Fiscal 2027 Outlook Puts Pace Savings Against Revenue Risk
• Neutral Sentiment: NIKE’s recent rally has raised questions about whether the recovery can sustain itself; investors will be watching the company’s upcoming Investor Day and progress on its product strategy. Article: Is Now a Good Time to Buy Nike Stock?
• Negative Sentiment: Truist cut its rating from Hold to Sell and set a $29 price target, citing portfolio risks and valuation. UBS also warned that recovery may lag expectations, maintaining a Neutral rating and $34 target. These calls add pressure after NIKE’s recent share gains. Article: NKE Downgraded To ‘Sell’ At Truist Article: Nike recovery may lag valuation expectations, UBS warns
• Negative Sentiment: Weak growth remains a key concern: sales in China fell 25% year over year in the latest reported quarter, and Jordan and Dunk demand is shrinking. Articles also flag lower sales and earnings expectations, making NIKE’s valuation harder to justify if the turnaround takes longer. Article: Is Now a Good Time to Buy Nike Stock? Article: Is NIKE Stock Worth Buying as Valuation Stays High Amid Weak Growth?

About NIKE

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

NIKE’s product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.