HSBC Cuts NIKE (NYSE:NKE) Price Target to $40.00

NIKE (NYSE:NKE) had its target price lowered by HSBC from $48.00 to $40.00 in a research report released on Monday morning, MarketBeat Ratings reports. The firm currently has a hold rating on the footwear maker’s stock.

A number of other equities research analysts have also weighed in on NKE. Citigroup lowered shares of NIKE from a “neutral” rating to a “negative” rating in a report on Monday, September 14th. Evercore set a $46.00 target price on shares of NIKE and gave the stock an “in-line” rating in a research report on Tuesday, June 23rd. Morgan Stanley set a $31.00 price target on shares of NIKE and gave the stock an “underweight” rating in a research note on Thursday, September 10th. BMO Capital Markets began coverage on shares of NIKE in a research report on Tuesday, September 8th. They set an “underperform” rating and a $30.00 price target for the company. Finally, Robert W. Baird set a $44.00 price target on shares of NIKE and gave the company a “neutral” rating in a research report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have assigned a Hold rating and seven have given a Sell rating to the company’s stock. According to data from MarketBeat.com, NIKE currently has an average rating of “Hold” and a consensus target price of $46.62.

NIKE Stock Performance

NYSE:NKE opened at $35.38 on Monday. The business has a 50 day moving average of $39.16 and a 200 day moving average of $43.07. The company has a market capitalization of $52.49 billion, a price-to-earnings ratio of 16.93, a PEG ratio of 2.02 and a beta of 1.10. NIKE has a 1-year low of $35.15 and a 1-year high of $76.97. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36.

NIKE (NYSE:NKE) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.09. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. During the same quarter in the prior year, the firm earned $0.14 earnings per share. NIKE’s revenue for the quarter was down 1.1% on a year-over-year basis. On average, sell-side analysts predict that NIKE will post 1.64 earnings per share for the current fiscal year.

NIKE Dividend Announcement

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

Insider Activity

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the company’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the sale, the chief operating officer directly owned 104,862 shares in the company, valued at $3,941,762.58. This represents a 3.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the sale, the chief financial officer directly owned 82,165 shares of the company’s stock, valued at $3,418,064. The trade was a 2.91% 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. Insiders sold 14,974 shares of company stock valued at $600,126 in the last three months. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

A number of institutional investors have recently modified their holdings of the company. State Street Corp grew its stake in shares of NIKE by 2.2% in the fourth quarter. State Street Corp now owns 59,315,606 shares of the footwear maker’s stock worth $3,802,807,000 after purchasing an additional 1,275,494 shares during the last quarter. Capital World Investors raised its position in NIKE by 16.2% during the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock valued at $3,126,246,000 after purchasing an additional 6,830,938 shares during the last quarter. J. Stern & Co. LLP raised its position in NIKE by 49,010.4% during the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock valued at $3,061,555,000 after purchasing an additional 47,956,692 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in NIKE by 12.5% in the 4th quarter. Janus Henderson Group PLC now owns 7,887,609 shares of the footwear maker’s stock worth $502,537,000 after buying an additional 874,662 shares during the period. Finally, Flossbach Von Storch SE purchased a new stake in NIKE in the 2nd quarter worth approximately $488,714,000. 64.25% of the stock is currently owned by hedge funds and other institutional investors.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Record short interest of approximately 87 million shares could provide a potential short squeeze if Nike delivers a substantial earnings or outlook surprise. NKE Ticks Higher Ahead of Q1
• Positive Sentiment: Jefferies believes Nike could beat first-quarter expectations, while November’s investor day may provide additional details on the company’s recovery strategy. Jefferies Bets on Nike’s Recovery
• Neutral Sentiment: Consensus expectations call for roughly $0.44 in EPS and $11.34 billion in revenue, with investors focused on China sales, margins, inventory, retailer orders, and management’s guidance. Prediction markets imply limited confidence in a strong earnings beat. Nike Stock Seen Sinking Further After Q1 Earnings
• Negative Sentiment: Analysts have reduced price targets ahead of the report, including RBC’s cut from $45 to $40, and several expect conservative guidance. The cautious setup reflects weak China demand, intense competition, retailer order pullbacks, and a turnaround viewed as progressing too slowly. Nike Likely to Issue Conservative Guidance
• Negative Sentiment: Nike is overhauling its China strategy to reduce discounting and rebuild its premium positioning, but the transition may weigh on near-term sales. Investors also expect year-over-year declines in first-quarter revenue and EPS, keeping downside risk elevated if results or guidance disappoint. Nike Overhauls Its China Strategy

NIKE Company Profile

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.