NIKE (NYSE:NKE) Stock Gets Downgrade from Truist Financial

NIKE (NYSE:NKE) was downgraded by research analysts at Truist Financial from a “hold” rating to a “sell” rating in a research note issued on Thursday, Marketbeat reports. They presently have a $29.00 price target on the footwear maker’s stock. Truist Financial‘s price objective suggests a potential downside of 24.89% from the stock’s previous close.

A number of other research analysts have also recently commented on NKE. BTIG Research reissued a “buy” rating and issued a $50.00 target price on shares of NIKE in a research note on Thursday, October 22nd. Wolfe Research initiated coverage on NIKE in a report on Wednesday, October 21st. They issued an “underperform” rating and a $28.00 price objective for the company. Evercore reduced their price objective on NIKE from $46.00 to $28.00 in a research report on Monday, September 28th. Stifel Nicolaus decreased their price objective on NIKE from $40.00 to $36.00 and set a “hold” rating on the stock in a report on Friday, October 2nd. Finally, Wells Fargo & Company set a $30.00 target price on NIKE and gave the stock an “equal weight” rating in a research report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty have assigned a Hold rating and twelve have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $40.91.

NIKE Price Performance

NIKE stock traded down $0.95 during midday trading on Thursday, hitting $38.61. 20,432,263 shares of the company’s stock were exchanged, compared to its average volume of 27,603,836. NIKE has a 52-week low of $31.97 and a 52-week high of $69.14. The stock has a 50-day moving average price of $36.91 and a two-hundred day moving average price of $45.63. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07. The company has a market cap of $57.35 billion, a P/E ratio of 18.56, a PEG ratio of 4.57 and a beta of 1.01.

NIKE (NYSE:NKE) last released its quarterly earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share for the quarter, beating the consensus estimate 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 revenue was down 4.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, equities research analysts forecast that NIKE will post 1.22 earnings per share for the current year.

Insider Activity at NIKE

In other news, EVP Philip McCartney sold 2,559 shares of the 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 $96,192.81. Following the completion of the sale, the executive vice president owned 78,121 shares of the company’s stock, valued at approximately $2,936,568.39. This represents a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 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 completion of the transaction, the chief operating officer owned 104,862 shares in the company, valued at $3,941,762.58. This represents a 3.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On NIKE

A number of large investors have recently added to or reduced their stakes in the company. Vista Capital Partners Inc. bought a new stake in NIKE in the third quarter valued at $1,001,000. Carson Advisory Inc. raised its holdings in NIKE by 19.1% in the 3rd quarter. Carson Advisory Inc. now owns 7,545 shares of the footwear maker’s stock worth $267,000 after purchasing an additional 1,210 shares in the last quarter. ICICI Prudential Asset Management Co Ltd lifted its position in shares of NIKE by 15.9% in the 3rd quarter. ICICI Prudential Asset Management Co Ltd now owns 199,247 shares of the footwear maker’s stock worth $7,053,000 after purchasing an additional 27,267 shares during the period. Marble Harbor Investment Counsel LLC boosted its stake in shares of NIKE by 37.8% during the 3rd quarter. Marble Harbor Investment Counsel LLC now owns 87,469 shares of the footwear maker’s stock valued at $3,096,000 after purchasing an additional 23,985 shares in the last quarter. Finally, Allworth Financial LP increased its position in shares of NIKE by 6.8% during the third quarter. Allworth Financial LP now owns 42,284 shares of the footwear maker’s stock valued at $1,497,000 after buying an additional 2,696 shares during the period. Institutional investors own 64.25% of the company’s stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE shares gained 13.9% over the past month, with performance categories and North America showing traction. However, persistent China weakness and earnings pressure make the durability of the rebound uncertain. Read article
• Neutral Sentiment: RBC expects NIKE’s five-year financial targets to be broadly in line with consensus, suggesting its Capital Markets Day may clarify strategy without providing a major near-term catalyst for the stock. Read article
• Negative Sentiment: Analyst caution is weighing on sentiment: Truist downgraded NIKE to “sell” with a $29 target, while UBS maintained “neutral” and a $34 target, warning the recovery may lag valuation expectations. RBC also cut its target to $39 and kept a sector-perform rating. Read article
• Negative Sentiment: Reports point to shrinking Jordan and Dunk sales, with the CEO acknowledging a prior blind spot. A pullback in Jordan sneakers could also create an opening for competitors. Read article
• Negative Sentiment: NIKE’s fiscal 2027 outlook highlights potential sales and earnings pressure; planned $2.5 billion in cost savings could help longer term but may not offset near-term revenue risks. China remains a key concern, with sales there down 25% year over year in the latest reported quarter. Read article

NIKE Company Profile

NIKE, Inc designs, develops, markets and sells athletic footwear, apparel, equipment and accessories for sports and fitness, as well as lifestyle products. Its portfolio includes the Nike and Jordan brands, and it owns Converse, which sells casual footwear, apparel and accessories.

The company sells products worldwide through wholesale partners and its own retail stores and digital platforms. Its offerings serve customers across a range of sports and activities, including running, basketball, soccer and training.

NIKE traces its roots to Blue Ribbon Sports, founded in 1964 by Phil Knight and Bill Bowerman.