Zacks Research Has Pessimistic Opinion of NIKE Q1 Earnings

NIKE, Inc. (NYSE:NKE) – Investment analysts at Zacks Research decreased their Q1 2028 EPS estimates for NIKE in a report issued on Friday, October 16th. Zacks Research analyst Team now expects that the footwear maker will earn $0.50 per share for the quarter, down from their prior forecast of $0.51. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for NIKE’s current full-year earnings is $1.26 per share. Zacks Research also issued estimates for NIKE’s Q1 2029 earnings at $0.60 EPS.

Other analysts have also issued research reports about the stock. DZ Bank lowered shares of NIKE from a “strong-buy” rating to a “strong sell” rating in a research report on Friday, October 2nd. BMO Capital Markets restated an “underperform” rating and set a $25.00 price objective on shares of NIKE in a research report on Friday, October 2nd. Wall Street Zen downgraded shares of NIKE from a “hold” rating to a “sell” rating in a research report on Saturday, October 3rd. BNP Paribas Exane set a $19.00 target price on NIKE and gave the stock an “underperform” rating in a research note on Friday, October 2nd. Finally, Barclays set a $37.00 target price on NIKE and gave the stock an “overweight” rating in a research note on Monday, October 5th. One equities research 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 MarketBeat.com, the company currently has an average rating of “Reduce” and an average target price of $41.07.

NIKE Stock Performance

Shares of NIKE stock opened at $37.22 on Monday. The company has a 50 day moving average of $37.38 and a 200-day moving average of $41.45. NIKE has a 1-year low of $31.97 and a 1-year 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. The company has a market cap of $55.29 billion, a PE ratio of 23.80, a price-to-earnings-growth ratio of 4.19 and a beta of 1.09.

NIKE (NYSE:NKE) last released its earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating the consensus estimate of $0.43 by $0.05. The firm had revenue of $11.21 billion for the quarter, compared to analyst estimates of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. The business’s quarterly revenue was down 4.3% compared to the same quarter last year. During the same period last year, the firm earned $0.49 EPS. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS.

NIKE Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date was Tuesday, September 1st. NIKE’s dividend payout ratio (DPR) is presently 78.85%.

Insider Activity at NIKE

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the company’s stock in a transaction that occurred 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 transaction, 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 document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $204,657.35. Following the transaction, the insider owned 57,436 shares of the company’s stock, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is currently owned by company insiders.

Institutional Trading of NIKE

A number of hedge funds and other institutional investors have recently modified their holdings of NKE. Flossbach Von Storch SE acquired a new stake in shares of NIKE during the 2nd quarter worth approximately $488,714,000. State Street Corp increased its stake in shares of NIKE by 6.8% in the 2nd quarter. State Street Corp now owns 63,598,789 shares of the footwear maker’s stock valued at $2,636,104,000 after acquiring an additional 4,052,428 shares in the last quarter. Confluence Investment Management LLC increased its stake in shares of NIKE by 873.8% in the 3rd quarter. Confluence Investment Management LLC now owns 2,720,616 shares of the footwear maker’s stock valued at $96,310,000 after acquiring an additional 2,441,233 shares in the last quarter. Equity Investment Corp acquired a new position in shares of NIKE during the 2nd quarter valued at $99,531,000. Finally, Amundi lifted its position in shares of NIKE by 59.4% during the 2nd quarter. Amundi now owns 6,460,398 shares of the footwear maker’s stock valued at $265,199,000 after acquiring an additional 2,406,609 shares during the period. Institutional investors own 64.25% of the company’s stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: An analyst argues that Nike’s recent product-development weakness is recoverable and that the shares are undervalued after a steep decline from their peak. This provides a potential re-rating catalyst if new products and sales trends improve. Analyst says Nike will recover and shares are undervalued
• Positive Sentiment: Nike’s roughly 4.4% dividend yield and share price well below its historical peak may attract income-oriented and value investors, particularly if the company can stabilize earnings and maintain the payout. Coca-Cola and Nike high-yield dividend comparison
• Neutral Sentiment: Nike was included in recent luxury-goods and apparel-stock watchlists, increasing visibility but offering no new company-specific catalyst or change to its fundamentals. Top Luxury Goods Stocks To Watch Best Apparel Stocks Worth Watching
• Negative Sentiment: Zacks issued a negative forecast for Nike’s earnings, reinforcing concerns about slower demand, product execution and near-term profit growth. This contrasts with the longer-term recovery thesis and may limit upside until earnings estimates improve. Zacks Research Issues Negative Forecast for NIKE Earnings
• Negative Sentiment: A separate dividend comparison favored Coca-Cola over Nike, suggesting investors may view Nike’s higher yield as compensation for greater business and earnings risk rather than as a clear buy signal. Why only one high-yield dividend stock is a buy

About NIKE

NIKE, Inc is a global athletic footwear, apparel, equipment and accessories company headquartered near Beaverton, Oregon. The company designs, develops, markets and sells products under the Nike, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.