According to Zacks, “Shares of NIKE have underperformed the industry year to date. Further, the company provided a soft view for the fiscal fourth quarter, owing to adverse impacts of currency. The company expects reported revenues for the fiscal fourth quarter to be in a low-single digit. In addition, higher SG&A expenses owing to increased investments are likely to remain a drag. Further, higher input costs like cotton, chemicals and labor as well as the shift in supply-chain investments from the fiscal third quarter to the fourth quarter should hurt results. Nevertheless, the company has delivered positive earnings results for over three years now, with third-quarter fiscal 2019 marking the 27th straight quarter of earnings beat. Moreover, sales surpassed estimates for the eighth straight quarter. Strong progress on Consumer Direct Offense through innovation and focus on digital transformation are the key drivers. “
NKE has been the subject of several other reports. Telsey Advisory Group raised their target price on shares of Nike from $92.00 to $95.00 and gave the stock an outperform rating in a report on Monday, March 18th. Wells Fargo & Co raised their price target on shares of Nike from $76.00 to $80.00 and gave the stock a market perform rating in a report on Friday, March 22nd. Bank of America raised their price target on shares of Nike from $55.00 to $60.00 and gave the stock an underperform rating in a report on Tuesday, March 19th. Rowe upgraded shares of Nike from a sell rating to an outperform rating and set a $100.00 price target for the company in a report on Friday, February 8th. Finally, Citigroup started coverage on shares of Nike in a research report on Wednesday, April 10th. They set a buy rating and a $100.00 price objective on the stock. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and twenty-four have assigned a buy rating to the company’s stock. The company currently has an average rating of Buy and an average target price of $87.10.
Nike (NYSE:NKE) last announced its earnings results on Thursday, March 21st. The footwear maker reported $0.68 EPS for the quarter, topping the consensus estimate of $0.65 by $0.03. Nike had a net margin of 10.79% and a return on equity of 45.78%. The company had revenue of $9.61 billion during the quarter, compared to analysts’ expectations of $9.60 billion. During the same period last year, the company posted $0.68 earnings per share. The business’s revenue for the quarter was up 7.0% on a year-over-year basis. As a group, equities research analysts forecast that Nike will post 2.55 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Monday, June 3rd will be issued a dividend of $0.22 per share. The ex-dividend date is Friday, May 31st. This represents a $0.88 annualized dividend and a yield of 1.06%. Nike’s dividend payout ratio is currently 36.36%.
In other Nike news, EVP Monique S. Matheson sold 16,500 shares of the business’s stock in a transaction dated Tuesday, March 19th. The stock was sold at an average price of $88.21, for a total transaction of $1,455,465.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, EVP John F. Slusher sold 110,000 shares of the business’s stock in a transaction dated Monday, April 1st. The stock was sold at an average price of $85.02, for a total value of $9,352,200.00. The disclosure for this sale can be found here. Insiders have sold a total of 166,504 shares of company stock valued at $14,320,816 over the last three months. Company insiders own 3.90% of the company’s stock.
Large investors have recently made changes to their positions in the business. Vanguard Group Inc increased its stake in shares of Nike by 1.2% in the 3rd quarter. Vanguard Group Inc now owns 102,670,288 shares of the footwear maker’s stock valued at $8,698,227,000 after acquiring an additional 1,207,986 shares during the last quarter. BlackRock Inc. increased its stake in shares of Nike by 4.3% in the 4th quarter. BlackRock Inc. now owns 86,268,224 shares of the footwear maker’s stock valued at $6,395,928,000 after acquiring an additional 3,592,186 shares during the last quarter. Oregon Public Employees Retirement Fund increased its stake in shares of Nike by 6,517.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 35,283,152 shares of the footwear maker’s stock valued at $476,000 after acquiring an additional 34,749,961 shares during the last quarter. FMR LLC increased its stake in shares of Nike by 27.0% in the 1st quarter. FMR LLC now owns 23,077,703 shares of the footwear maker’s stock valued at $1,943,374,000 after acquiring an additional 4,908,916 shares during the last quarter. Finally, Northern Trust Corp grew its position in shares of Nike by 2.4% in the 4th quarter. Northern Trust Corp now owns 20,985,790 shares of the footwear maker’s stock valued at $1,555,886,000 after purchasing an additional 491,974 shares during the period. 66.17% of the stock is owned by hedge funds and other institutional investors.
Nike Company Profile
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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