NIKE (NYSE:NKE) Rating Lowered to “Strong Sell” at Zacks Research

NIKE (NYSE:NKE) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday, Zacks reports.

Several other analysts have also issued reports on the company. UBS Group reaffirmed a “neutral” rating and issued a $34.00 target price (down from $42.00) on shares of NIKE in a research note on Friday. Stifel Nicolaus decreased their price target on shares of NIKE from $40.00 to $36.00 and set a “hold” rating on the stock in a research note on Friday. Sanford C. Bernstein restated an “outperform” rating and issued a $45.00 price objective on shares of NIKE in a report on Friday. BTIG Research cut their price objective on shares of NIKE from $55.00 to $50.00 and set a “buy” rating for the company in a research note on Friday. Finally, Wall Street Zen lowered shares of NIKE from a “hold” rating to a “sell” rating in a report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-two have assigned a Hold rating and eight have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $42.12.

NIKE Price Performance

NKE opened at $33.88 on Thursday. The stock has a 50-day moving average price of $38.88 and a 200-day moving average price of $42.88. NIKE has a 12-month low of $31.97 and a 12-month high of $74.78. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $50.27 billion, a P/E ratio of 16.29, a PEG ratio of 2.42 and a beta of 1.09.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 EPS 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 analyst estimates of $11.32 billion. NIKE had a return on equity of 16.18% and a net margin of 6.74%.The company’s revenue was down 4.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Equities analysts predict that NIKE will post 1.61 earnings per share for the current fiscal year.

Insider Buying and Selling

In other NIKE news, EVP Philip McCartney sold 2,559 shares of the business’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 value of $96,192.81. Following the completion of the sale, the executive vice president owned 78,121 shares in the company, valued at approximately $2,936,568.39. The trade was a 3.17% decrease in their ownership of the stock. The sale 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 stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $137,992.89. Following the sale, the chief operating officer directly owned 104,862 shares of the company’s stock, valued at approximately $3,941,762.58. This trade represents a 3.38% 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. Over the last ninety days, insiders have sold 14,974 shares of company stock worth $600,126. Company insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On NIKE

Several institutional investors have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC purchased a new stake in shares of NIKE during the fourth quarter worth about $26,000. Sankala Group LLC purchased a new position in NIKE during the 4th quarter valued at about $26,000. Scarborough Advisors LLC purchased a new position in NIKE during the 1st quarter valued at about $25,000. Meeder Asset Management Inc. increased its holdings in NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock valued at $29,000 after purchasing an additional 285 shares during the period. Finally, Atlas Wealth LLC bought a new position in NIKE during the 1st quarter valued at approximately $31,000. Hedge funds and other 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 reported fiscal Q1 EPS of $0.48, above the $0.43 analyst consensus. The company also retains a strong balance sheet, with approximately $8.4 billion in cash and short-term investments, while its dividend yield is approaching 5%. NIKE Posts Earnings Results
• Positive Sentiment: Some analysts see the selloff as an opportunity. Freedom Broker upgraded NKE from “sell” to “buy” with a $51 price target, while BTIG maintained a “buy” rating with a $50 target. Bernstein called the stock “de-risked” following the earnings release. Bernstein says Nike stock is de-risked
• Neutral Sentiment: NIKE is launching the Pace restructuring program, targeting approximately $2.5 billion in savings. Management said the plan is intended to simplify operations and support performance categories, but implementation will include further job cuts likely extending into 2027. NIKE fiscal 2027 first-quarter results
• Neutral Sentiment: The company’s dividend appears supported by its liquidity and history of 24 consecutive years of increases, although a higher yield also reflects the stock’s substantial decline and investors’ concerns about future earnings.
• Negative Sentiment: Fiscal Q1 revenue fell 4.3% year over year to $11.21 billion, below the $11.32 billion consensus estimate. Weakness in Greater China, Sportswear and Jordan continued to weigh on sales, while competition and changing consumer preferences are pressuring the brand. Nike plans more job cuts and forecasts revenue drop
• Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and provided EPS guidance of $1.15–$1.35, well below the roughly $1.66 analyst consensus. The outlook suggests Nike’s turnaround may take longer and be more costly than investors expected. Nike shares fall after weak outlook and layoffs
• Negative Sentiment: Several firms reduced price targets, including Citi to $32 and JPMorgan to $33, with neutral or underweight ratings. Zacks also placed NKE on its Strong Sell list, reinforcing concerns about margin pressure, China weakness and delayed recovery.

About NIKE

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.