A number of other brokerages also commented on NKE. Cowen cut his price target on NIKE from $127.00 to $114.00 and set an “outperform” rating on the stock in a Friday, Sept. 30 research note. HSBC lowered its target price on NIKE from $140.00 to $132.00 and set a “holding” rating for the company in a Tuesday, June 14 report. Wells Fargo & Company lowered its price target on NIKE from $150.00 to $130.00 and set an “overweight” rating for the company in a Tuesday, June 28 report. BMO Capital Markets lowered its price target on NIKE from $128.00 to $110.00 and set an “outperform” rating for the company in a Friday, September 30 report. Finally, Argus downgraded NIKE from a “buy” rating to a “hold” rating in a report released on Monday. Thirteen analysts gave the stock a hold rating and nineteen gave the company’s stock a buy rating. According to data from MarketBeat.com, NIKE has an average rating of “Moderate Buy” and an average target price of $116.04.
NIKE trades up 3.8%
NYSE: NKE opened at $88.64 on Wednesday. The company has a market capitalization of $139.04 billion, a P/E ratio of 25.11, a price-to-earnings growth ratio of 2.27 and a beta of 1.11. The company has a quick ratio of 1.76, a current ratio of 2.64 and a debt ratio of 0.56. NIKE has a 12-month low of $82.22 and a 12-month high of $179.10. The company has a 50-day moving average price of $107.25 and a two-hundred-day moving average price of $113.87.
NIKE (NYSE: NKE – Get a rating) last announced its quarterly results on Thursday, September 29. The shoemaker reported earnings per share (EPS) of $0.93 for the quarter, beating the consensus estimate of $0.92 by $0.01. The company posted revenue of $12.70 billion in the quarter, versus a consensus estimate of $12.28 billion. NIKE had a return on equity of 37.08% and a net margin of 11.96%. The company’s quarterly revenue increased 3.7% year over year. During the same quarter last year, the company posted EPS of $1.16. As a group, analysts expect NIKE to post EPS of 3.19 for the current fiscal year.
NIKE announced that its board of directors launched a stock repurchase plan on Monday, June 27 that authorizes the company to repurchase $18.00 billion in outstanding stock. This repurchase authorization allows the shoemaker to repurchase up to 11% of its inventory through open market purchases. Stock repurchase plans usually indicate that the company’s board of directors believe its stock is undervalued.
Insider Activity at NIKE
Separately, Executive Vice President Monique S. Matheson sold 30,000 shares of the company in a trade on Thursday, July 7. The stock was sold at an average price of $107.19, for a total transaction of $3,215,700.00. Following the sale, the executive vice president now directly owns 60,330 shares of the company, valued at approximately $6,466,772.70. The transaction was disclosed in a document filed with the SEC, accessible via the SEC website. In other NIKE news, EVP Monique S. Matheson sold 30,000 shares of the company in a transaction dated Thursday, July 7. The stock was sold at an average price of $107.19, for a total value of $3,215,700.00. Following the transaction, the executive vice president now directly owns 60,330 shares of the company, valued at approximately $6,466,772.70. The sale was disclosed in a filing with the Securities & Exchange Commission, available via this hyperlink. Also, CFO Matthew friend sold 4,139 shares of the company in a trade dated Wednesday, August 3. The stock was sold at an average price of $113.42, for a total value of $469,445.38. Following completion of the transaction, the CFO now owns 56,539 shares of the company, valued at $6,412,653.38. Disclosure of this sale can be found here. In the past three months, insiders have sold 40,061 shares of the company worth $4,356,819. 0.40% of the shares are held by insiders of the company.
Hedge funds weigh on NIKE
Institutional investors have recently changed their stake in the company. MD Financial Management Inc. increased its stake in NIKE by 22.5% during the 4th quarter. MD Financial Management Inc. now owns 5,634 shares of the shoemaker valued at $939,000 after acquiring an additional 1,036 shares during the period. Laurel Wealth Advisors Inc. increased its holdings in NIKE by 130.2% during the 4th quarter. Laurel Wealth Advisors Inc. now owns 9,201 shares of the shoemaker valued at $1,534,000 after acquiring an additional 5,204 shares during the period. Silver Oak Advisory Group Inc. purchased a new stake in NIKE during Q4, valued at approximately $490,000. Sender Co & Partners Inc. acquired a new stake in NIKE during Q4, valued at approximately $1,765,000. Finally, Schonfeld Strategic Advisors LLC increased its stake in NIKE by 1,247.5% during the 4th quarter. Schonfeld Strategic Advisors LLC now owns 68,721 shares of the shoemaker valued at $11,453,000 after acquiring an additional 63,621 shares during the period. 64.19% of the shares are currently held by institutional investors.
NIKE, Inc., together with its subsidiaries, designs, develops, markets and sells athletic footwear, apparel, equipment and accessories for men, women and children worldwide. The Company provides athletic and recreational footwear, apparel and accessories under the Jumpman brand; and casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell brands.
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