NIKE (NYSE:NKE) Stock Price Down 1.7% – What’s Next?

NIKE, Inc. (NYSE:NKE)’s share price traded down 1.7% during mid-day trading on Tuesday. The company traded as low as $37.94 and last traded at $38.4740. 18,009,373 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 24,627,832 shares. The stock had previously closed at $39.12.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Nike’s product reset is focused on performance innovation and fresh launches, while tighter control of Jordan releases and digital distribution may help protect full-price sales. Will Product Reset Change Nike’s Narrative
• Positive Sentiment: Some coverage sees evidence of progress: gross margin expanded despite falling sales, and Nike recently beat quarterly EPS estimates. Nike vs. Lululemon
• Neutral Sentiment: Nike’s first fully electric container barge in Vietnam supports its sustainability efforts, but the report does not indicate a near-term financial impact. Nike Put Vietnam’s First Fully Electric Container Barge Into Service
• Negative Sentiment: CEO commentary about a “blind spot” comes as Jordan and Dunk sales shrink, raising concern that Nike has misjudged shifts in demand for major franchises. Nike CEO admits blind spot as Jordan and Dunk sales shrink
• Negative Sentiment: Truist downgraded NKE to Sell and set a $29 target, citing risks across the business and valuation. That contrasts with more optimistic views and adds pressure after the stock’s recent rally. NKE Downgraded To Sell At Truist
• Negative Sentiment: The turnaround still faces weak demand: one report says sales in China fell 25% year over year and Nike expects sales to decline this year. Is Now a Good Time to Buy Nike Stock?

Wall Street Analyst Weigh In

A number of brokerages have commented on NKE. Argus raised shares of NIKE to a “strong-buy” rating in a report on Wednesday, July 15th. Guggenheim restated a “buy” rating and issued a $50.00 price objective on shares of NIKE in a research report on Thursday, October 22nd. Telsey Advisory Group set a $35.00 target price on shares of NIKE and gave the stock a “market perform” rating in a research note on Friday, October 2nd. Wall Street Zen lowered shares of NIKE from a “hold” rating to a “sell” rating in a research report on Saturday, October 3rd. Finally, Truist Financial lowered shares of NIKE from a “hold” rating to a “sell” rating and set a $29.00 target price on the stock. in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty have given a Hold rating and twelve have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $40.93.

NIKE Stock Performance

The firm has a fifty day moving average of $36.90 and a 200-day moving average of $45.76. The company has a quick ratio of 1.39, a current ratio of 2.07 and a debt-to-equity ratio of 0.39. The firm has a market cap of $58.80 billion, a P/E ratio of 25.95, a PEG ratio of 4.73 and a beta of 1.01.

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

Insider Buying and Selling

In other NIKE news, insider Amy Montagne sold 4,867 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the transaction, the insider directly owned 57,436 shares of the company’s stock, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Philip McCartney sold 2,559 shares of NIKE stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $96,192.81. Following the sale, the executive vice president directly owned 78,121 shares of the company’s stock, valued at $2,936,568.39. This represents a 3.17% 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. Insiders sold a total of 11,097 shares of company stock valued at $438,843 over the last ninety days. Insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

Several institutional investors and hedge funds have recently made changes to their positions in NKE. Flossbach Von Storch SE acquired a new stake in shares of NIKE in the second quarter valued at approximately $488,714,000. State Street Corp boosted its stake in shares of 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 buying an additional 4,052,428 shares during the period. Confluence Investment Management LLC boosted its stake in shares of NIKE by 873.8% in the third quarter. Confluence Investment Management LLC now owns 2,720,616 shares of the footwear maker’s stock valued at $96,310,000 after buying an additional 2,441,233 shares during the period. Equity Investment Corp acquired a new stake in NIKE during the second quarter worth approximately $99,531,000. Finally, Amundi grew its position in NIKE by 59.4% during the second quarter. Amundi now owns 6,460,398 shares of the footwear maker’s stock worth $265,199,000 after buying an additional 2,406,609 shares in the last quarter. Institutional investors own 64.25% of the company’s stock.

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.