Citigroup Cuts NIKE (NYSE:NKE) Price Target to $39.00

NIKE (NYSE:NKE) had its price target trimmed by Citigroup from $45.00 to $39.00 in a research note published on Monday morning,Benzinga reports. The brokerage currently has a neutral rating on the footwear maker’s stock.

Several other brokerages have also commented on NKE. Wells Fargo & Company cut their target price on NIKE from $45.00 to $40.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 1st. Telsey Advisory Group set a $47.00 target price on NIKE and gave the stock a “market perform” rating in a report on Wednesday, July 1st. DZ Bank reissued a “buy” rating on shares of NIKE in a research note on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft boosted their price target on NIKE from $43.00 to $45.00 and gave the company a “hold” rating in a research note on Friday, July 17th. Finally, Morgan Stanley set a $31.00 price target on NIKE and gave the stock an “underweight” rating in a report on Thursday, September 10th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have issued a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $49.09.

NIKE Price Performance

NKE stock opened at $35.81 on Monday. The firm has a market cap of $53.13 billion, a price-to-earnings ratio of 17.14, a PEG ratio of 1.83 and a beta of 1.10. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40. NIKE has a 12-month low of $35.76 and a 12-month high of $76.97. The company’s fifty day simple moving average is $40.64 and its 200 day simple moving average is $44.61.

NIKE (NYSE:NKE) last issued its quarterly earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The firm had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. During the same period last year, the business posted $0.14 EPS. The business’s revenue was down 1.1% compared to the same quarter last year. On average, analysts expect that NIKE will post 1.69 earnings per share for the current year.

NIKE Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a $0.41 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 annualized dividend and a yield of 4.6%. NIKE’s dividend payout ratio is presently 78.47%.

Insider Transactions at NIKE

In other news, COO Venkatesh Alagirisamy sold 3,671 shares of the company’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 transaction, the chief operating officer directly owned 104,862 shares of the company’s stock, valued at $3,941,762.58. This represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of the stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $96,192.81. Following the completion of the transaction, the executive vice president owned 78,121 shares in the company, valued at approximately $2,936,568.39. This 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. Over the last ninety days, insiders sold 14,974 shares of company stock worth $600,126. 1.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. The Manufacturers Life Insurance Company lifted its stake in shares of NIKE by 1.9% in the second quarter. The Manufacturers Life Insurance Company now owns 640,889 shares of the footwear maker’s stock valued at $26,308,000 after buying an additional 11,884 shares in the last quarter. MCF Advisors LLC increased its position in shares of NIKE by 48.4% during the second quarter. MCF Advisors LLC now owns 25,663 shares of the footwear maker’s stock worth $1,060,000 after acquiring an additional 8,370 shares in the last quarter. National Pension Service increased its position in shares of NIKE by 8.7% during the second quarter. National Pension Service now owns 3,088,640 shares of the footwear maker’s stock worth $126,789,000 after acquiring an additional 247,230 shares in the last quarter. WINTON GROUP Ltd raised its holdings in shares of NIKE by 63.0% in the 2nd quarter. WINTON GROUP Ltd now owns 43,923 shares of the footwear maker’s stock worth $1,803,000 after acquiring an additional 16,978 shares during the last quarter. Finally, Cidel Asset Management Inc. raised its holdings in shares of NIKE by 33.4% in the 2nd quarter. Cidel Asset Management Inc. now owns 15,948 shares of the footwear maker’s stock worth $655,000 after acquiring an additional 3,995 shares during the last quarter. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE News Summary

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE appointed Alexandre Arnault to its board of directors. As deputy CEO of Moët Hennessy at LVMH, Arnault brings experience in helping global brands innovate and adapt, which could support NIKE’s efforts to refresh its brand and improve long-term growth. Alexandre Arnault Joins NIKE, Inc. Board of Directors
• Positive Sentiment: Some investors view NIKE’s depressed valuation and approximately 4.5% dividend yield as attractive. Bullish commentary also points to cost controls, improving margins, and renewed momentum in running and soccer as potential signs that the turnaround could eventually gain traction. Nike Is Down 79%. Is It Finally the Ultimate Dividend Stock to Buy and Never Sell?
• Neutral Sentiment: NIKE’s North American wholesale business is showing improvement, but recovery remains uneven. Investors are weighing whether gains in North America can offset continued international weakness and promotional pressure. Global Wholesale Weakness Lingers: Can NIKE Reignite Sales?
• Negative Sentiment: Robert W. Baird downgraded NKE from “outperform” to “hold” and cut its price target to $44 from $70. Citigroup has also lowered its expectations, adding to concerns about limited near-term upside. NIKE Analyst Rating and Price Target Changes
• Negative Sentiment: Analysts and market coverage continue to highlight weak global wholesale demand, persistent promotional activity, and a turnaround that has not yet lifted sales meaningfully. NIKE’s upcoming removal from the S&P 100 further reinforces the perception that the company has lost market momentum. Nike’s S&P Exit Is a Warning for Every Consumer Brand
• Negative Sentiment: Chief Legal Officer Robert Leinwand sold 3,646 shares worth approximately $137,053. Although the sale represented only about 4% of his prior holdings, insider selling can weigh on sentiment while the stock is near its 52-week low. Nike’s Chief Legal Officer Sells 3,646 Shares

NIKE Company Profile

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

NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.