Formula Growth Ltd. Invests $616,000 in NIKE, Inc. $NKE

Formula Growth Ltd. acquired a new stake in shares of NIKE, Inc. (NYSE:NKE) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 15,000 shares of the footwear maker’s stock, valued at approximately $616,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. J. Stern & Co. LLP lifted 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 buying an additional 47,956,692 shares during the period. Norges Bank bought a new stake in shares of NIKE in the fourth quarter worth $829,956,000. Flossbach Von Storch SE bought a new stake in shares of NIKE in the second quarter worth $488,714,000. Harris Associates L P purchased a new stake in NIKE during the second quarter valued at $621,525,000. Finally, Capital World Investors increased 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 acquiring an additional 6,830,938 shares during the last quarter. Institutional investors own 64.25% of the company’s stock.

NIKE Price Performance

Shares of NYSE:NKE opened at $38.34 on Friday. The company has a market capitalization of $56.88 billion, a P/E ratio of 18.34, a P/E/G ratio of 1.71 and a beta of 1.11. NIKE, Inc. has a 1-year low of $38.17 and a 1-year high of $79.13. The firm’s 50 day simple moving average is $42.02 and its two-hundred day simple moving average is $47.17. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The firm had revenue of $10.97 billion during the quarter, compared to analysts’ expectations of $10.85 billion. During the same period in the prior year, the company posted $0.14 earnings per share. The company’s revenue for the quarter was down 1.1% compared to the same quarter last year. Research analysts expect that NIKE, Inc. will post 1.74 EPS for the current fiscal year.

NIKE Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Tuesday, September 1st. NIKE’s payout ratio is presently 78.47%.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE is appointing a senior executive with Walmart experience as it seeks to improve sales execution and rebuild momentum. The leadership addition provides a potential catalyst, although investors will likely want evidence of stronger results before changing their outlook. Nike taps Walmart veteran to help drive comeback
• Positive Sentiment: Some valuation measures suggest NKE shares may be undervalued after the prolonged decline. However, discounted-cash-flow analysis indicates the stock may be closer to fairly valued, limiting the strength of the bullish argument. Nike stock valuation analysis
• Positive Sentiment: Recent insider activity includes purchases by CEO Elliott Hill and other executives, signaling that some insiders view the depressed share price as attractive. Institutional positioning was mixed, with some large investors adding shares while others reduced holdings. Nike stock opinions and trading activity
• Neutral Sentiment: NIKE’s latest quarterly results exceeded earnings and revenue estimates, but revenue still declined year over year, reinforcing the view that the company’s recovery remains incomplete.
• Negative Sentiment: Truist downgraded NKE to Hold after weakness at retail partner Dick’s Sporting Goods raised concerns about soft traffic, muted consumer demand and a potentially longer turnaround. Analysts have also lowered price targets, citing China-related challenges. Why Nike stock is falling
• Negative Sentiment: Commentary highlights continued market-share erosion, legacy inventory issues and negative reactions to some upcoming Air Jordan designs, raising questions about NIKE’s product innovation and brand relevance. Nike performance struggles
• Negative Sentiment: Investors are also assessing dividend sustainability: NIKE’s payout growth could become more difficult to maintain if earnings do not improve materially during the turnaround. Nike dividend sustainability

Insiders Place Their Bets

In related news, COO Venkatesh Alagirisamy sold 890 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $37,024.00. Following the transaction, the chief operating officer directly owned 74,820 shares of the company’s stock, valued at approximately $3,112,512. The trade was a 1.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the transaction, the insider owned 57,436 shares of the company’s stock, valued at $2,415,183.80. The trade was a 7.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 26,142 shares of company stock worth $1,169,380. 1.10% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Truist Financial set a $42.00 target price on NIKE and gave the stock a “hold” rating in a research report on Wednesday. UBS Group set a $48.00 target price on shares of NIKE and gave the company a “neutral” rating in a research report on Wednesday, July 1st. Bank of America dropped their price target on shares of NIKE from $55.00 to $47.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 1st. Royal Bank Of Canada reissued a “sector perform” rating and set a $45.00 price objective on shares of NIKE in a research report on Tuesday. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of NIKE in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $52.94.

NIKE Profile

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).