NIKE (NYSE:NKE) Shares Gap Down on Analyst Downgrade

NIKE, Inc. (NYSE:NKE) gapped down prior to trading on Friday after BTIG Research lowered their price target on the stock from $55.00 to $50.00. The stock had previously closed at $35.15, but opened at $32.55. BTIG Research currently has a buy rating on the stock. NIKE shares last traded at $33.2860, with a volume of 41,668,361 shares trading hands.

Other equities research analysts also recently issued research reports about the company. Argus upgraded NIKE to a “strong-buy” rating in a report on Wednesday, July 15th. Weiss Ratings raised NIKE from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, July 17th. Evercore cut their target price on shares of NIKE from $46.00 to $34.00 in a research note on Monday. Deutsche Bank Aktiengesellschaft decreased their price target on shares of NIKE from $45.00 to $37.00 and set a “hold” rating for the company in a research note on Monday. Finally, Piper Sandler reiterated a “neutral” rating and set a $38.00 price target (down from $45.00) on shares of NIKE in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty have given a Hold rating and eight have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $43.77.

Insiders Place Their Bets

In related news, insider Amy Montagne sold 4,867 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the transaction, the insider directly owned 57,436 shares of the company’s stock, valued at $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 owned 82,165 shares in the company, valued at $3,418,064. This represents a 2.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,974 shares of company stock worth $600,126 in the last three months. 1.10% of the stock is owned by company insiders.

More NIKE News

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 analyst consensus. The company also said its “Sport Offense” is making progress, and its new Caitlin Clark signature shoe nearly sold out shortly after launch. NIKE Fiscal 2027 First-Quarter Results
• Positive Sentiment: Management launched the Pace restructuring plan, which is intended to simplify operations, improve efficiency and accelerate the eventual recovery. BTIG retained a “buy” rating, although it reduced its price target from $55 to $50. Nike Announces Pace Restructuring Plan
• Neutral Sentiment: Analysts are becoming more cautious: Baird cut its target to $36 and assigned a “neutral” rating, while Stifel lowered its target to $36 and maintained “hold.” Needham also reaffirmed “hold,” reflecting limited confidence in a near-term recovery. Needham Maintains Hold Rating
• Negative Sentiment: Revenue fell 4.3% year over year to $11.21 billion, missing the $11.32 billion consensus. Weakness in Greater China, Sportswear and the Jordan brand, along with intense competition from local Chinese brands, overshadowed resilience in North America.
• Negative Sentiment: NIKE forecast fiscal 2027 adjusted EPS of only $1.15 to $1.35, well below the roughly $1.66 analyst expectation, and warned that revenue could decline by a high-single-digit percentage. Management also plans additional job cuts after two rounds of reductions earlier this year, reinforcing concerns about the depth of the slowdown. Nike Weak Outlook and Layoff Plans

Institutional Trading of NIKE

Institutional investors and hedge funds have recently made changes to their positions in the company. Cornerstone Financial Management LLC acquired a new position in NIKE during the fourth quarter worth approximately $26,000. Sankala Group LLC purchased a new stake in NIKE in the 4th quarter valued at $26,000. Scarborough Advisors LLC purchased a new stake in NIKE in the 1st quarter valued at $25,000. Meeder Asset Management Inc. boosted its stake in NIKE by 108.4% during the 1st quarter. Meeder Asset Management Inc. now owns 548 shares of the footwear maker’s stock worth $29,000 after purchasing an additional 285 shares during the period. Finally, Atlas Wealth LLC acquired a new stake in NIKE during the 1st quarter worth $31,000. 64.25% of the stock is owned by hedge funds and other institutional investors.

NIKE Price Performance

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 company has a market capitalization of $49.30 billion, a PE ratio of 15.90, a P/E/G ratio of 2.43 and a beta of 1.09. The company’s 50-day simple moving average is $39.04 and its 200-day simple moving average is $42.94.

NIKE (NYSE:NKE) last released its earnings results on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.05. The business had revenue of $11.21 billion for the quarter, compared to analyst estimates of $11.32 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The company’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. As a group, sell-side analysts anticipate that NIKE, Inc. will post 1.61 earnings per share for the current year.

NIKE Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date of this dividend was Tuesday, September 1st. NIKE’s dividend payout ratio is 78.47%.

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.