Stock Traders Purchase High Volume of NIKE Call Options (NYSE:NKE)

NIKE, Inc. (NYSE:NKE) was the target of unusually large options trading activity on Friday. Traders bought 182,729 call options on the company. This represents an increase of 59% compared to the average daily volume of 115,283 call options.

NIKE Stock Performance

NYSE NKE traded up $1.13 during trading hours on Friday, reaching $39.57. 28,380,666 shares of the company were exchanged, compared to its average volume of 21,726,090. The stock has a market capitalization of $58.70 billion, a P/E ratio of 18.93, a P/E/G ratio of 1.71 and a beta of 1.11. 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 1 year low of $38.17 and a 1 year high of $79.13. The business’s 50 day simple moving average is $41.91 and its 200-day simple moving average is $47.11.

NIKE (NYSE:NKE) last released its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $10.85 billion. During the same period in the previous year, the company earned $0.14 earnings per share. The company’s quarterly revenue was down 1.1% on a year-over-year basis. On average, equities research analysts expect that NIKE will post 1.74 earnings per share for the current year.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE’s dividend payout ratio is 78.47%.

Insider Activity at NIKE

In other news, CFO Matthew Friend sold 2,463 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the transaction, the chief financial officer owned 82,165 shares of the company’s stock, valued at $3,418,064. This represents a 2.91% decrease in their position. The transaction 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 17,398 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $46.18, for a total value of $803,439.64. Following the completion of the sale, the executive vice president owned 53,133 shares of the company’s stock, valued at approximately $2,453,681.94. This represents a 24.67% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 26,142 shares of company stock valued at $1,169,380. Company insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

Several hedge funds have recently made changes to their positions in NKE. Amundi grew its stake in shares of NIKE by 59.4% during the 2nd quarter. Amundi now owns 6,460,398 shares of the footwear maker’s stock worth $265,199,000 after acquiring an additional 2,406,609 shares during the period. Carlson Financial Inc. raised its stake in NIKE by 43.7% in the 2nd quarter. Carlson Financial Inc. now owns 18,146 shares of the footwear maker’s stock valued at $745,000 after acquiring an additional 5,522 shares during the period. California State Teachers Retirement System raised its stake in NIKE by 4,052.9% in the 2nd quarter. California State Teachers Retirement System now owns 75,611,801 shares of the footwear maker’s stock valued at $3,103,864,000 after acquiring an additional 73,791,103 shares during the period. Studio Investment Management LLC purchased a new stake in NIKE during the second quarter valued at about $647,000. Finally, Wedmont Private Capital lifted its holdings in NIKE by 29.8% during the second quarter. Wedmont Private Capital now owns 7,454 shares of the footwear maker’s stock valued at $331,000 after purchasing an additional 1,710 shares during the last quarter. 64.25% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. BNP Paribas Exane reiterated an “underperform” rating on shares of NIKE in a report on Wednesday, July 22nd. Truist Financial set a $42.00 price objective on NIKE and gave the company a “hold” rating in a report on Wednesday. The Goldman Sachs Group cut their target price on NIKE from $46.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, July 1st. Evercore set a $46.00 price target on shares of NIKE and gave the company an “in-line” rating in a research report on Tuesday, June 23rd. Finally, UBS Group set a $48.00 price target on shares of NIKE and gave the company a “neutral” rating in a research note on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $52.94.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Traders purchased 182,729 NKE call options, 59% above typical daily call volume. The activity may reflect increased bullish speculation, although options positioning does not guarantee sustained buying in the shares.
• Positive Sentiment: Grupo SBF extended its exclusive Nike distribution agreement in Brazil through 2034. The longer arrangement provides continued access to an important Latin American market and supports Nike’s regional distribution network. Grupo SBF Extends Exclusive Nike Distribution Deal in Brazil to 2034
• Neutral Sentiment: NIKE said it will release fiscal first-quarter 2027 results on October 1 after the market close, followed by a management conference call. Investors will look for evidence that the company’s turnaround is improving sales, inventory levels and margins. NIKE Announces First Quarter Fiscal 2027 Earnings and Conference Call
• Neutral Sentiment: NIKE appointed Walmart veteran Jane Ewing as chief commercial officer to help lead its comeback. The hire could strengthen execution and retail strategy, but investors are likely to want measurable results before assigning significant value to the turnaround. Nike Taps Walmart Veteran to Help Drive Comeback
• Negative Sentiment: Reports say Nike’s China business continues to shrink as domestic competitors gain market share and the brand struggles to remain locally relevant. China weakness threatens a key source of long-term growth. Why America’s Biggest Brands Keep Losing in China
• Negative Sentiment: Analysts and market commentary continue to cite soft consumer confidence, weaker traffic, excess legacy inventory and doubts about product innovation. These concerns reinforce expectations for a prolonged recovery and have contributed to reduced price targets and bearish sentiment.

About NIKE

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).