Credit Suisse Group Reiterates “Buy” Rating for Nike (NKE)

Credit Suisse Group reiterated their buy rating on shares of Nike (NYSE:NKE) in a report published on Monday, September 24th. They currently have a $90.00 target price on the footwear maker’s stock.

NKE has been the topic of a number of other reports. HSBC set a $92.00 price target on Nike and gave the stock a buy rating in a research note on Thursday, September 6th. Pivotal Research set a $85.00 price target on Nike and gave the stock a hold rating in a research note on Friday, September 21st. Morgan Stanley initiated coverage on Nike in a research note on Wednesday, August 1st. They set an overweight rating and a $88.00 price target on the stock. Jefferies Financial Group reissued a neutral rating and issued a $68.00 price objective on shares of Nike in a research note on Wednesday, June 13th. Finally, B. Riley increased their price objective on Nike from $68.00 to $76.00 and gave the stock a neutral rating in a research note on Friday, June 29th. Two investment analysts have rated the stock with a sell rating, seventeen have given a hold rating and twenty-three have given a buy rating to the company. Nike presently has a consensus rating of Buy and an average target price of $84.60.

Shares of Nike stock opened at $80.23 on Monday. Nike has a one year low of $50.35 and a one year high of $86.04. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.53 and a current ratio of 2.31. The stock has a market cap of $135.60 billion, a P/E ratio of 33.15, a price-to-earnings-growth ratio of 2.81 and a beta of 0.65.

Nike (NYSE:NKE) last announced its earnings results on Tuesday, September 25th. The footwear maker reported $0.67 EPS for the quarter, beating the consensus estimate of $0.63 by $0.04. Nike had a return on equity of 40.69% and a net margin of 5.57%. The company had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.92 billion. During the same quarter in the prior year, the company earned $0.57 EPS. The firm’s revenue for the quarter was up 9.7% compared to the same quarter last year. Equities research analysts expect that Nike will post 2.63 earnings per share for the current fiscal year.

Nike declared that its board has approved a share buyback program on Thursday, June 28th that authorizes the company to repurchase $15.00 billion in shares. This repurchase authorization authorizes the footwear maker to repurchase up to 12.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

The business also recently declared a quarterly dividend, which was paid on Monday, October 1st. Stockholders of record on Tuesday, September 4th were issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.00%. The ex-dividend date of this dividend was Friday, August 31st. Nike’s payout ratio is currently 33.06%.

In related news, Director Johnathan A. Rodgers sold 16,000 shares of Nike stock in a transaction on Wednesday, September 19th. The stock was sold at an average price of $85.05, for a total transaction of $1,360,800.00. Following the completion of the sale, the director now owns 26,963 shares of the company’s stock, valued at $2,293,203.15. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Monique S. Matheson sold 17,000 shares of Nike stock in a transaction on Tuesday, September 18th. The shares were sold at an average price of $85.00, for a total value of $1,445,000.00. Following the sale, the executive vice president now directly owns 104,737 shares of the company’s stock, valued at approximately $8,902,645. The disclosure for this sale can be found here. Insiders sold 72,778 shares of company stock valued at $5,969,246 over the last ninety days. Corporate insiders own 3.90% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. purchased a new stake in Nike during the second quarter valued at about $104,000. BDO Wealth Advisors LLC increased its holdings in shares of Nike by 1,044.3% in the second quarter. BDO Wealth Advisors LLC now owns 1,396 shares of the footwear maker’s stock worth $111,000 after buying an additional 1,274 shares during the period. CSat Investment Advisory L.P. purchased a new position in shares of Nike in the second quarter worth about $119,000. Tyvor Capital LLC purchased a new position in shares of Nike in the second quarter worth about $160,000. Finally, Archford Capital Strategies LLC purchased a new position in shares of Nike in the first quarter worth about $137,000. Institutional investors and hedge funds own 63.97% of the company’s stock.

About Nike

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.

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