Nike, Inc. (NKE) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Nike, Inc. (NYSE:NKE) from a hold rating to a sell rating in a report released on Tuesday, July 11th.

According to Zacks, “NIKE’s shares have outperformed the Consumer Discretionary sector in the last six months driven by a splendid surprise history, alongside focus on its “triple-double” and Consumer Direct Offense strategies. The company delivered 20th straight earnings beat in fourth-quarter fiscal 2017. While the company also managed to report solid sales, we note that sales at its key North American market continues to suffer due to lackluster product assortments, increased promotions and intensified competition. Additionally, the growth of eCommerce has weighed on its wholesale business in the region. We expect the promotional environment to continue hurting the segment’s sales. Further, the company provided a soft outlook for fiscal 2018 taking into account the operating environment, strategic changes and the foreign currency headwinds, which led to a downtrend in estimates.”

NKE has been the subject of several other reports. Morgan Stanley set a $56.00 price objective on Nike and gave the stock a neutral rating in a research note on Monday, March 13th. Piper Jaffray Companies reissued a neutral rating and set a $51.00 price objective on shares of Nike in a research note on Thursday, March 16th. Bank of America Corporation reissued an underperform rating and set a $46.00 price objective on shares of Nike in a research note on Wednesday, March 22nd. Vetr lowered Nike from a buy rating to a hold rating and set a $58.44 price objective for the company. in a research note on Monday, April 17th. Finally, DA Davidson reissued a buy rating and set a $64.00 price objective on shares of Nike in a research note on Friday, March 17th. Two analysts have rated the stock with a sell rating, sixteen have given a hold rating and twenty-two have given a buy rating to the company. Nike currently has an average rating of Buy and an average price target of $61.04.

Shares of Nike (NYSE NKE) traded down 0.17% during midday trading on Tuesday, reaching $58.97. The company had a trading volume of 4,979,994 shares. The company’s 50 day moving average price is $57.77 and its 200 day moving average price is $55.57. The stock has a market capitalization of $96.90 billion, a PE ratio of 23.49 and a beta of 0.59. Nike has a 52-week low of $49.01 and a 52-week high of $60.53.

Nike (NYSE:NKE) last issued its quarterly earnings results on Thursday, June 29th. The footwear maker reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.10. Nike had a return on equity of 34.18% and a net margin of 12.34%. The company had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.63 billion. During the same period last year, the firm earned $0.49 EPS. The firm’s revenue for the quarter was up 5.3% on a year-over-year basis. Equities research analysts expect that Nike will post $2.42 earnings per share for the current year.

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The business also recently announced a quarterly dividend, which will be paid on Monday, October 2nd. Investors of record on Tuesday, September 5th will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.22%. The ex-dividend date is Thursday, August 31st. Nike’s payout ratio is presently 28.69%.

In other news, insider Eric D. Sprunk sold 112,323 shares of the stock in a transaction dated Friday, July 28th. The shares were sold at an average price of $58.61, for a total transaction of $6,583,251.03. Following the completion of the transaction, the insider now directly owns 139,551 shares in the company, valued at approximately $8,179,084.11. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Eric D. Sprunk sold 50,000 shares of the stock in a transaction dated Friday, June 30th. The stock was sold at an average price of $59.00, for a total transaction of $2,950,000.00. Following the transaction, the insider now owns 300,108 shares of the company’s stock, valued at $17,706,372. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 492,360 shares of company stock valued at $28,485,174. Company insiders own 3.90% of the company’s stock.

Large investors have recently modified their holdings of the stock. Tyers Asset Management LLC purchased a new stake in shares of Nike during the fourth quarter worth about $12,834,000. Parallel Advisors LLC purchased a new stake in shares of Nike during the fourth quarter worth about $813,000. Sand Hill Global Advisors LLC boosted its stake in shares of Nike by 2.4% in the fourth quarter. Sand Hill Global Advisors LLC now owns 89,486 shares of the footwear maker’s stock worth $4,549,000 after buying an additional 2,074 shares during the last quarter. Cpcm LLC purchased a new stake in shares of Nike during the fourth quarter worth about $2,562,000. Finally, Marietta Wealth Management LLC purchased a new stake in shares of Nike during the fourth quarter worth about $1,389,000. 64.77% of the stock is currently owned by institutional investors.

Nike Company Profile

NIKE, Inc is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company’s operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. Its portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse.

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