Zacks Investment Research Upgrades Nike, Inc. (NYSE:NKE) to “Hold”
Zacks Investment Research upgraded shares of Nike, Inc. (NYSE:NKE) from a sell rating to a hold rating in a research note released on Thursday.
According to Zacks, “NIKE’s shares have outperformed the Consumer Discretionary sector in the last six months driven by a splendid surprise history, alongside focus on its “triple-double” and Consumer Direct Offense strategies. The company delivered 20th straight earnings beat in fourth-quarter fiscal 2017. While the company also managed to report solid sales, we note that sales at its key North American market continues to suffer due to lackluster product assortments, increased promotions and intensified competition. Additionally, the growth of eCommerce has weighed on its wholesale business in the region. We expect the promotional environment to continue hurting the segment’s sales. Further, the company provided a soft outlook for fiscal 2018 taking into account the operating environment, strategic changes and the foreign currency headwinds. First quarter estimates witnessed a downtrend in the last 30 days.”
NKE has been the subject of a number of other research reports. Piper Jaffray Companies set a $50.00 price objective on Nike and gave the stock a hold rating in a report on Saturday, July 1st. BidaskClub upgraded Nike from a sell rating to a hold rating in a report on Wednesday, June 14th. Vetr downgraded Nike from a buy rating to a hold rating and set a $54.16 price objective for the company. in a report on Monday, June 5th. Robert W. Baird reiterated an outperform rating and issued a $62.00 price objective on shares of Nike in a report on Friday, June 30th. Finally, Nomura restated a buy rating on shares of Nike in a report on Monday, May 15th. Two equities research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and twenty-two have issued a buy rating to the company. The company has an average rating of Buy and an average price target of $61.04.
Shares of Nike (NYSE NKE) traded up 0.39% during mid-day trading on Thursday, reaching $58.90. 3,625,354 shares of the company’s stock were exchanged. The firm has a market capitalization of $96.78 billion, a P/E ratio of 23.47 and a beta of 0.59. The stock has a 50-day moving average of $56.05 and a 200 day moving average of $55.16. Nike has a one year low of $49.01 and a one year high of $60.33.
Nike (NYSE:NKE) last posted its quarterly earnings data on Thursday, June 29th. The footwear maker reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.10. The business had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.63 billion. Nike had a return on equity of 34.18% and a net margin of 12.34%. The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.49 earnings per share. On average, analysts forecast that Nike will post $2.42 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 5th. Shareholders of record on Monday, June 5th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date of this dividend was Thursday, June 1st. Nike’s payout ratio is 28.69%.
In other news, insider Trevor A. Edwards sold 200,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 5th. The stock was sold at an average price of $57.63, for a total transaction of $11,526,000.00. Following the transaction, the insider now owns 729,610 shares of the company’s stock, valued at approximately $42,047,424.30. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Andrew Campion sold 5,722 shares of the business’s stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $59.40, for a total value of $339,886.80. Following the transaction, the chief financial officer now directly owns 34,976 shares in the company, valued at approximately $2,077,574.40. The disclosure for this sale can be found here. In the last ninety days, insiders sold 380,037 shares of company stock worth $21,901,923. Corporate insiders own 3.90% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Personal Capital Advisors Corp increased its position in Nike by 15.5% in the first quarter. Personal Capital Advisors Corp now owns 83,943 shares of the footwear maker’s stock valued at $4,758,000 after buying an additional 11,288 shares in the last quarter. Stillwater Investment Management LLC increased its position in Nike by 4.6% in the first quarter. Stillwater Investment Management LLC now owns 37,813 shares of the footwear maker’s stock valued at $2,107,000 after buying an additional 1,677 shares in the last quarter. Adviser Investments LLC bought a new position in Nike during the first quarter valued at $2,645,000. Lederer & Associates Investment Counsel CA increased its position in Nike by 1.4% in the first quarter. Lederer & Associates Investment Counsel CA now owns 6,330 shares of the footwear maker’s stock valued at $353,000 after buying an additional 90 shares in the last quarter. Finally, DnB Asset Management AS increased its position in Nike by 11.7% in the first quarter. DnB Asset Management AS now owns 146,817 shares of the footwear maker’s stock valued at $8,182,000 after buying an additional 15,380 shares in the last quarter. 64.28% of the stock is currently owned by hedge funds and other institutional investors.
NIKE, Inc is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company’s operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. Its portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse.
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