NIKE (NYSE:NKE) Shares Climb 1.7% – Should You Buy?

NIKE, Inc. (NYSE:NKE) traded up 1.7% on Tuesday. The company traded as high as $38.14 and last traded at $37.8360. 24,344,466 shares traded hands during trading, a decline of 2% from the average daily volume of 24,772,504 shares. The stock had previously closed at $37.21.

Trending Headlines about NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: NIKE’s sharply lower share price has pushed its dividend yield above those of Procter & Gamble and roughly twice that of Coca-Cola, which could attract income-oriented investors. However, the higher yield largely reflects the stock’s decline, and the company’s dividend offers less stability than those consumer-staples peers. Nike dividend yield comparison
• Positive Sentiment: Some analysts argue NIKE shares are undervalued after the selloff, while historical trading patterns suggest the stock could recover in November. These views may be supporting bargain-hunting and helping explain the recent improvement in the shares. Nike potential November recovery
• Neutral Sentiment: Investor debate is centered on whether NIKE’s brand strength and eventual product-development improvement can outweigh the opportunity cost of owning a company whose management does not expect sales to increase soon. Nike buy, hold, or sell analysis
• Negative Sentiment: Zacks Research repeatedly cut its NIKE earnings forecasts and maintained a “Strong Sell” rating. FY2027 EPS was reduced to $1.26 from $1.69, FY2028 to $1.68 from $2.11, and FY2029 to $2.00 from $2.56. Quarterly estimates were also lowered, signaling expectations for a slower and less profitable recovery. Zacks negative Nike earnings forecast
• Negative Sentiment: Fiscal 2027 sales are expected to decline, and management has indicated that growth is unlikely to resume soon. That weak outlook, combined with lackluster product development and the possibility of more attractive investment alternatives, remains the main overhang on NKE. Why Nike stock is falling

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Bank of America reiterated an “underperform” rating and issued a $24.00 price objective (down from $30.00) on shares of NIKE in a research note on Friday, October 2nd. Raymond James Financial restated a “market perform” rating on shares of NIKE in a research report on Tuesday, September 29th. BTIG Research decreased their price target on NIKE from $55.00 to $50.00 and set a “buy” rating on the stock in a research note on Friday, October 2nd. BMO Capital Markets reaffirmed an “underperform” rating and issued a $25.00 price target on shares of NIKE in a research note on Friday, October 2nd. Finally, Benchmark upgraded NIKE to a “hold” rating in a research report on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-one have given a Hold rating and ten have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $41.07.

NIKE Price Performance

The stock has a market capitalization of $56.20 billion, a P/E ratio of 18.19, a PEG ratio of 4.19 and a beta of 1.09. The company’s 50 day simple moving average is $37.38 and its two-hundred day simple moving average is $41.45. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.07 and a quick ratio of 1.39.

NIKE (NYSE:NKE) last posted 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 company had revenue of $11.21 billion during the quarter, compared to analysts’ expectations of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. NIKE’s quarterly revenue 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, equities analysts expect that NIKE, Inc. will post 1.26 EPS for the current fiscal year.

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were given a dividend of $0.41 per share. The ex-dividend date was Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a yield of 4.3%. NIKE’s dividend payout ratio is 78.85%.

Insiders Place Their Bets

In related news, insider Amy Montagne sold 4,867 shares of the firm’s stock in a transaction 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 completion of the sale, the insider directly owned 57,436 shares of the company’s stock, valued at $2,415,183.80. This trade represents a 7.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Venkatesh Alagirisamy sold 3,671 shares of NIKE stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total value of $137,992.89. Following the completion of the transaction, the chief operating officer owned 104,862 shares of the company’s stock, valued at approximately $3,941,762.58. The trade was a 3.38% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 14,974 shares of company stock valued at $600,126. Company insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. FAS Wealth Partners Inc. boosted its holdings in shares of NIKE by 4.2% during the first quarter. FAS Wealth Partners Inc. now owns 6,109 shares of the footwear maker’s stock worth $323,000 after purchasing an additional 249 shares during the period. Elevation Wealth Partners LLC grew its stake in shares of NIKE by 34.6% in the second quarter. Elevation Wealth Partners LLC now owns 989 shares of the footwear maker’s stock worth $41,000 after purchasing an additional 254 shares during the last quarter. Midwest Professional Planners LTD. increased its holdings in NIKE by 1.5% during the 1st quarter. Midwest Professional Planners LTD. now owns 17,904 shares of the footwear maker’s stock valued at $946,000 after purchasing an additional 266 shares during the period. Advance Capital Management Inc. increased its holdings in NIKE by 7.1% during the 1st quarter. Advance Capital Management Inc. now owns 4,203 shares of the footwear maker’s stock valued at $222,000 after purchasing an additional 279 shares during the period. Finally, Elmwood Wealth Management Inc. increased its holdings in NIKE by 2.7% during the 2nd quarter. Elmwood Wealth Management Inc. now owns 10,666 shares of the footwear maker’s stock valued at $438,000 after purchasing an additional 279 shares during the period. 64.25% of the stock is currently owned by institutional investors and hedge funds.

NIKE Company Profile

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.