FBR & Co reaffirmed their hold rating on shares of Nike, Inc. (NYSE:NKE) in a research note issued to investors on Friday morning. FBR & Co currently has a $53.00 target price on the footwear maker’s stock.
“We attended Nike’s Analyst Day in Beaverton, OR on October 25, 2017 where Nike showcased several new products/innovations and elaborated on their Consumer Direct Offense and Triple Double strategies and introduced its new membership program NikePlus. Management expects these initiatives to drive +HSD topline and +MT EPS growth over the next 5 years, reaching $50B in sales in 5 years (pushed out 1 year from LY). We were impressed with Nike’s new NikePlus program, focus on digital, how it is transforming its supply chain and getting product to consumers, and some of the new innovation/product. However, we believe the NA athletic environment will remain difficult for the next 1-2 years which will be a headwind for NKE near term, and would look to get more constructive on NKE at a lower valuation or evidence that NKE can overcome these headwinds near term. We also believe NKE’s scale, superior supply chain, innovation pipeline, digital/DTC focus, and sponsorship roster will make it difficult for smaller athletic players (i.e.”,” the firm’s analyst commented.
Other equities research analysts have also issued reports about the stock. Goldman Sachs Group, Inc. (The) reaffirmed a buy rating and set a $63.00 price objective (up from $62.00) on shares of Nike in a report on Friday, June 30th. Berenberg Bank reaffirmed a buy rating and set a $70.00 price objective on shares of Nike in a report on Friday, June 30th. Nomura reaffirmed a buy rating and set a $60.00 price objective on shares of Nike in a report on Friday, June 30th. Stifel Nicolaus reaffirmed a buy rating and set a $66.00 price objective on shares of Nike in a report on Friday, June 30th. Finally, Deutsche Bank AG set a $69.00 price objective on shares of Nike and gave the company a buy rating in a report on Saturday, July 1st. Four equities research analysts have rated the stock with a sell rating, twenty have assigned a hold rating and nineteen have assigned a buy rating to the company’s stock. The company has an average rating of Hold and a consensus price target of $58.90.
Nike (NYSE:NKE) traded down 1.73% during trading on Friday, hitting $54.99. 5,543,069 shares of the stock traded hands. The company has a market cap of $89.72 billion, a P/E ratio of 23.41 and a beta of 0.61. Nike has a 52-week low of $49.01 and a 52-week high of $60.53. The firm has a 50-day moving average price of $52.85 and a 200 day moving average price of $54.69.
Nike (NYSE:NKE) last announced its quarterly earnings data on Tuesday, September 26th. The footwear maker reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.09. Nike had a net margin of 11.47% and a return on equity of 31.88%. The business had revenue of $9.07 billion during the quarter, compared to analyst estimates of $9.08 billion. During the same period last year, the firm posted $0.73 EPS. The company’s revenue was up .1% on a year-over-year basis. On average, equities analysts expect that Nike will post $2.33 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 2nd. Stockholders of record on Tuesday, September 5th were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Thursday, August 31st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.29%. Nike’s payout ratio is 30.64%.
In other news, Director Johnathan A. Rodgers sold 16,000 shares of the business’s stock in a transaction dated Thursday, September 14th. The stock was sold at an average price of $53.45, for a total transaction of $855,200.00. Following the sale, the director now owns 25,660 shares in the company, valued at $1,371,527. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.90% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Zevin Asset Management LLC boosted its position in Nike by 106.3% in the third quarter. Zevin Asset Management LLC now owns 9,900 shares of the footwear maker’s stock valued at $513,000 after buying an additional 5,100 shares during the last quarter. Gillespie Robinson & Grimm Inc. boosted its position in Nike by 1.9% in the third quarter. Gillespie Robinson & Grimm Inc. now owns 418,707 shares of the footwear maker’s stock valued at $21,710,000 after buying an additional 7,760 shares during the last quarter. Heritage Investors Management Corp boosted its position in Nike by 0.8% in the third quarter. Heritage Investors Management Corp now owns 320,960 shares of the footwear maker’s stock valued at $16,642,000 after buying an additional 2,493 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA boosted its position in Nike by 3.1% in the third quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 901,736 shares of the footwear maker’s stock valued at $46,755,000 after buying an additional 27,080 shares during the last quarter. Finally, Cable Hill Partners LLC boosted its position in Nike by 7.1% in the third quarter. Cable Hill Partners LLC now owns 28,607 shares of the footwear maker’s stock valued at $1,483,000 after buying an additional 1,908 shares during the last quarter. Hedge funds and other institutional investors own 62.46% of the company’s stock.
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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