Nike Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “Nike’s customer-centric approach, innovative products and strong portfolio has helped strengthened its position in the footwear and athletic apparel industry. The company also continues to seek opportunities for increasing its market share via acquisitions, contracts to supply sports-related assortments, and development of its eCommerce and DTC business model. Nike’s strategic initiatives are well reflected from its positive earnings surprise streak over the past 16 straight quarters. However, top line has been missing estimates for quite some time due to adverse currency movements. Evidently, the company expects lingering currency woes to strongly hurt revenues in first-half fiscal 2017. Also, the company’s future orders witnessed a considerable slowdown and lagged expectations in the fourth quarter due to stiff competition from rivals. Estimates have been stable ahead of the company’s first-quarter earnings release.”
Several other analysts have also issued reports on NKE. Vetr upgraded Nike from a “buy” rating to a “strong-buy” rating and set a $62.64 price objective on the stock in a research note on Monday, May 30th. Deutsche Bank AG restated a “buy” rating on shares of Nike in a research note on Tuesday, May 31st. Morgan Stanley lowered Nike from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $69.00 to $60.00 in a research note on Wednesday, June 1st. Bank of America Corp. lowered Nike from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $72.00 to $60.00 in a research note on Wednesday, June 1st. Finally, Wells Fargo & Co. reiterated a “hold” rating and set a $60.00 target price on shares of Nike in a research note on Wednesday, June 15th. One analyst has rated the stock with a sell rating, ten have given a hold rating and twenty-two have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $65.27.
Nike (NYSE:NKE) opened at 55.15 on Thursday. Nike has a 12 month low of $51.48 and a 12 month high of $68.19. The firm has a 50-day moving average price of $56.85 and a 200 day moving average price of $57.42. The company has a market cap of $92.52 billion, a P/E ratio of 25.53 and a beta of 0.52.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Tuesday, September 6th will be paid a $0.16 dividend. The ex-dividend date is Thursday, September 1st. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.16%. Nike’s payout ratio is presently 29.63%.
In other Nike news, Director John C. Lechleiter bought 1,000 shares of the business’s stock in a transaction dated Friday, July 1st. The shares were purchased at an average price of $55.09 per share, for a total transaction of $55,090.00. Following the purchase, the director now directly owns 23,682 shares of the company’s stock, valued at $1,304,641.38. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Hilary K. Krane sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, July 25th. The stock was sold at an average price of $56.99, for a total value of $5,699,000.00. Following the completion of the transaction, the executive vice president now owns 310,795 shares in the company, valued at approximately $17,712,207.05. The disclosure for this sale can be found here. 3.90% of the stock is owned by insiders.
Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Nike by 0.4% in the second quarter. Vanguard Group Inc. now owns 89,158,174 shares of the footwear maker’s stock worth $4,921,530,000 after buying an additional 366,833 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in Nike by 0.6% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 36,848,805 shares of the footwear maker’s stock worth $2,265,096,000 after buying an additional 204,944 shares during the period. Wellington Management Group LLP boosted its stake in Nike by 92.6% in the first quarter. Wellington Management Group LLP now owns 27,329,360 shares of the footwear maker’s stock worth $1,679,937,000 after buying an additional 13,136,502 shares during the period. Janus Capital Management LLC boosted its stake in Nike by 14.4% in the second quarter. Janus Capital Management LLC now owns 25,453,224 shares of the footwear maker’s stock worth $1,405,003,000 after buying an additional 3,203,177 shares during the period. Finally, Lone Pine Capital LLC boosted its stake in Nike by 52.6% in the second quarter. Lone Pine Capital LLC now owns 18,305,703 shares of the footwear maker’s stock worth $1,010,475,000 after buying an additional 6,309,324 shares during the period. Hedge funds and other institutional investors own 62.04% of the company’s stock.
NIKE, Inc is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites (which the Company refers to as its Direct to Consumer or DTC operations), and through a mix of independent distributors and licensees throughout the world.
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