NIKE (NYSE:NKE) Shares Up 5.2% – Should You Buy?

NIKE, Inc. (NYSE:NKE)’s share price shot up 5.2% on Wednesday. The stock traded as high as $41.10 and last traded at $40.4840. Approximately 34,436,760 shares were traded during mid-day trading, an increase of 40% from the average daily volume of 24,673,363 shares. The stock had previously closed at $38.48.

Key NIKE News

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

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Wall Street Zen downgraded NIKE from a “hold” rating to a “sell” rating in a research note on Saturday, October 3rd. HSBC reduced their price objective on NIKE from $48.00 to $40.00 and set a “hold” rating for the company in a research note on Monday, September 28th. Zacks Research downgraded NIKE from a “hold” rating to a “strong sell” rating in a report on Thursday, October 1st. Morgan Stanley set a $27.00 target price on shares of NIKE and gave the stock an “underweight” rating in a research report on Friday, October 2nd. Finally, Wolfe Research assumed coverage on shares of NIKE in a report on Wednesday, October 21st. They issued an “underperform” rating and a $28.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty have given a Hold rating and twelve have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $40.91.

NIKE Trading Down 2.4%

The company has a fifty day moving average of $36.91 and a two-hundred day moving average of $45.63. The company has a quick ratio of 1.39, a current ratio of 2.07 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $57.35 billion, a price-to-earnings ratio of 18.56, a P/E/G ratio of 4.73 and a beta of 1.01.

NIKE (NYSE:NKE) last announced its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.05. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The company had revenue of $11.21 billion during the quarter, compared to the consensus estimate of $11.32 billion. During the same quarter in the prior year, the firm earned $0.49 EPS. NIKE’s quarterly revenue was down 4.3% on a year-over-year basis. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, research analysts expect that NIKE, Inc. will post 1.22 EPS for the current year.

Insider Activity

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $137,992.89. Following the completion of the sale, the chief operating officer owned 104,862 shares in the company, valued at $3,941,762.58. This trade 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 at 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 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 transaction, the executive vice president owned 78,121 shares in the company, valued at $2,936,568.39. The trade was a 3.17% 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. Corporate insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of NKE. FAS Wealth Partners Inc. raised its position in shares of NIKE by 4.2% during the 1st quarter. FAS Wealth Partners Inc. now owns 6,109 shares of the footwear maker’s stock worth $323,000 after purchasing an additional 249 shares during the period. Elevation Wealth Partners LLC lifted its stake in NIKE by 34.6% in the second quarter. Elevation Wealth Partners LLC now owns 989 shares of the footwear maker’s stock valued at $41,000 after buying an additional 254 shares during the last quarter. Midwest Professional Planners LTD. lifted its stake in NIKE by 1.5% in the first quarter. Midwest Professional Planners LTD. now owns 17,904 shares of the footwear maker’s stock valued at $946,000 after buying an additional 266 shares during the last quarter. Salomon & Ludwin LLC boosted its holdings in shares of NIKE by 15.4% during the third quarter. Salomon & Ludwin LLC now owns 2,019 shares of the footwear maker’s stock valued at $71,000 after acquiring an additional 269 shares during the period. Finally, Westside Investment Management Inc. increased its holdings in shares of NIKE by 8.4% in the 3rd quarter. Westside Investment Management Inc. now owns 3,484 shares of the footwear maker’s stock worth $123,000 after acquiring an additional 270 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.

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.