Deutsche Bank Aktiengesellschaft Issues Pessimistic Forecast for NIKE (NYSE:NKE) Stock Price

NIKE (NYSE:NKE) had its price objective dropped by equities researchers at Deutsche Bank Aktiengesellschaft from $45.00 to $37.00 in a research report issued to clients and investors on Monday, Marketbeat reports. The firm presently has a “hold” rating on the footwear maker’s stock. Deutsche Bank Aktiengesellschaft’s price target indicates a potential upside of 3.19% from the stock’s previous close.

NKE has been the topic of several other reports. Evercore set a $46.00 price target on shares of NIKE and gave the stock an “in-line” rating in a research note on Tuesday, June 23rd. Bank of America reaffirmed an “underperform” rating and set a $30.00 price objective (down from $47.00) on shares of NIKE in a research note on Friday, September 25th. Zacks Research raised shares of NIKE from a “strong sell” rating to a “hold” rating in a research note on Wednesday, August 19th. Argus upgraded NIKE to a “strong-buy” rating in a report on Wednesday, July 15th. Finally, Needham & Company LLC restated a “hold” rating on shares of NIKE in a research report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have assigned a Hold rating and seven have issued a Sell rating to the stock. Based on data from MarketBeat.com, NIKE has a consensus rating of “Hold” and a consensus target price of $46.62.

NIKE Stock Down 1.5%

Shares of NKE opened at $35.86 on Monday. The stock has a 50 day moving average price of $39.29 and a 200 day moving average price of $43.20. NIKE has a one year low of $35.22 and a one year high of $76.97. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.36 and a current ratio of 1.96. The stock has a market capitalization of $53.19 billion, a price-to-earnings ratio of 17.16, a PEG ratio of 2.03 and a beta of 1.10.

NIKE (NYSE:NKE) last announced its quarterly earnings data 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 return on equity of 16.54% and a net margin of 6.70%.The company had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. During the same quarter last year, the firm posted $0.14 EPS. The firm’s revenue for the quarter was down 1.1% on a year-over-year basis. Equities research analysts forecast that NIKE will post 1.65 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Matthew Friend sold 2,463 shares of the firm’s 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 sale, the chief financial officer owned 82,165 shares in the company, valued at $3,418,064. This trade represents a 2.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $42.05, for a total transaction of $204,657.35. Following the sale, the insider directly owned 57,436 shares in the company, valued at approximately $2,415,183.80. The trade was a 7.81% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 14,974 shares of company stock worth $600,126. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On NIKE

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

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jefferies expects Nike to deliver a first-quarter earnings beat, citing stabilization in North America and wholesale, better inventory levels and earlier gross-margin improvement. The firm also sees November’s investor day as a possible turnaround catalyst. Nike set for Q1 beat as margins improve, Jefferies says
• Positive Sentiment: New footwear launches and Nike’s “Sport Offense” strategy could help rebuild Sportswear momentum, although digital weakness and discounting remain obstacles. Will New Footwear Launches Help Nike Rebuild Sportswear Momentum?
• Positive Sentiment: Some bullish investors argue that the stock’s steep decline has already priced in substantial problems, creating potential long-term upside if management successfully restores growth, margins and brand momentum. Options positioning was also described as relatively optimistic ahead of earnings. Nike Stock Is at Rock Bottom. It Can Double From Here, Analyst Says.
• Neutral Sentiment: Investors are focused on Thursday’s earnings report, with the size of the implied move elevated because the results and management’s guidance could reset expectations for the turnaround. Key items include China sales, wholesale demand, inventories, promotions and gross margins. Here’s How Much Nike Stock Is Expected to Move After Earnings
• Neutral Sentiment: Nike’s appointment of Alexandre Arnault, a senior LVMH executive, to its board adds luxury-brand and international consumer expertise, but the financial impact is uncertain. Nike Brings Alexandre Arnault Onto Its Board
• Negative Sentiment: Analysts continue cutting targets ahead of earnings: RBC lowered its target to $40, while Evercore cut to $34, Deutsche Bank to $37, HSBC to $40 and Piper Sandler to $38. The revisions reflect expectations for a slower recovery and leave many firms at neutral or hold ratings.
• Negative Sentiment: Weak Chinese demand, retailer order pullbacks and intense competition are weighing on sales. Nike is overhauling its China strategy to reduce discounting and rebuild its premium positioning, but the market remains a major turnaround risk. Nike Overhauls Its China Strategy
• Negative Sentiment: Shares have fallen sharply and are near a 12- to 13-year low, while analysts warn that promotional pressure, digital weakness, margin compression and a shrinking competitive advantage could make the recovery more prolonged. Nike Stock Hovers Near Annual Lows Amid Analyst Downgrades

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.