NIKE (NYSE:NKE) Cut to Strong Sell at Berenberg Bank

Berenberg Bank lowered shares of NIKE (NYSE:NKE) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday morning,Zacks reports.

A number of other research firms have also weighed in on NKE. KeyCorp reissued a “sector weight” rating on shares of NIKE in a research report on Friday, October 2nd. CICC Research reduced their price objective on shares of NIKE from $58.00 to $44.80 and set a “neutral” rating for the company in a research report on Thursday, July 2nd. HSBC decreased their price objective on shares of NIKE from $48.00 to $40.00 and set a “hold” rating for the company in a research note on Monday, September 28th. BMO Capital Markets reissued an “underperform” rating and set a $25.00 target price on shares of NIKE in a research report on Friday, October 2nd. Finally, DZ Bank downgraded NIKE from a “strong-buy” rating to a “strong sell” rating in a research note on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty-one have assigned a Hold rating and ten have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Reduce” and an average price target of $41.19.

NIKE Trading Up 1.2%

NYSE NKE opened at $34.76 on Tuesday. The firm has a market capitalization of $51.57 billion, a P/E ratio of 16.71, a PEG ratio of 3.02 and a beta of 1.09. The business has a fifty day simple moving average of $38.22 and a 200 day simple moving average of $42.25. NIKE has a 12 month low of $31.97 and a 12 month high of $70.44. The company has a current ratio of 2.07, a quick ratio of 1.39 and a debt-to-equity ratio of 0.39.

NIKE (NYSE:NKE) last issued its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.05. The business had revenue of $11.21 billion for the quarter, compared to analysts’ expectations of $11.32 billion. NIKE had a return on equity of 15.94% and a net margin of 6.74%.The business’s revenue was down 4.3% on a year-over-year basis. During the same period last year, the business earned $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. On average, analysts predict that NIKE will post 1.26 EPS for the current fiscal year.

NIKE Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date was Tuesday, September 1st. NIKE’s dividend payout ratio (DPR) is 78.85%.

Insider Activity at NIKE

In other news, CFO Matthew Friend sold 2,463 shares of the stock in a transaction that occurred 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 completion of the transaction, the chief financial officer directly 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Philip McCartney sold 2,559 shares of the firm’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 transaction of $96,192.81. Following the sale, the executive vice president owned 78,121 shares of the company’s stock, valued at approximately $2,936,568.39. The trade was a 3.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 14,974 shares of company stock worth $600,126. Insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On NIKE

Several institutional investors have recently bought and sold shares of the company. Farther Finance Advisors LLC increased its position in NIKE by 57.8% in the third quarter. Farther Finance Advisors LLC now owns 55,310 shares of the footwear maker’s stock worth $1,958,000 after buying an additional 20,256 shares during the last quarter. Everhart Financial Group Inc. bought a new stake in shares of NIKE in the third quarter valued at $204,000. Quintet Private Bank Europe S.A. raised its stake in shares of NIKE by 95.8% in the third quarter. Quintet Private Bank Europe S.A. now owns 95,536 shares of the footwear maker’s stock valued at $3,382,000 after buying an additional 46,755 shares during the period. Kessler Investment Group LLC purchased a new position in shares of NIKE during the 3rd quarter valued at $1,554,000. Finally, Wealth Enhancement Trust Services Inc. lifted its position in shares of NIKE by 24.2% during the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 1,878 shares of the footwear maker’s stock valued at $66,000 after buying an additional 366 shares during the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE reported adjusted earnings of $0.48 per share, exceeding the $0.43 consensus estimate. Profit margins improved despite lower revenue, suggesting that cost controls, product mix and supply-chain actions are providing some support. Nike Latest Earnings
• Positive Sentiment: The company is pursuing additional growth opportunities, including a potential return to Formula 1 sponsorships in 2027. The initiative could improve brand visibility, although it remains speculative and is unlikely to materially affect near-term results. Nike Formula 1 Sponsorship
• Neutral Sentiment: NIKE’s elevated dividend yield and depressed valuation may attract income-oriented and long-term turnaround investors. However, commentary that fiscal 2027 earnings could fall below the dividend raises questions about the sustainability of the payout if the recovery is delayed. Nike Dividend Pledge
• Negative Sentiment: Revenue declined 4.3% year over year to $11.21 billion, missing the $11.32 billion consensus estimate. The sales decline reinforces concerns that NIKE’s turnaround is taking longer than expected. Nike Q1 Earnings Outlook
• Negative Sentiment: Greater China remains a major weakness, and investors are concerned that NIKE’s latest 10-Q provides less regional and comparable-store-sales detail. Reduced visibility makes it harder to assess whether the China business is stabilizing. Nike China Sales Disclosure
• Negative Sentiment: Analysts remain bearish because key franchises have lost momentum, sales have declined for several years and fiscal 2027 guidance is cautious. Berenberg also downgraded NIKE from “hold” to “strong sell,” adding to the negative sentiment. Nike Structural Issues

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.