Nike (NKE) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Nike (NYSE:NKE) from a buy rating to a hold rating in a report published on Wednesday morning.

According to Zacks, “NIKE has surpassed the sector in the past three months driven by strength in international business and the global NIKE Direct business. Also, NIKE has been focused on its Consumer Direct Offense plan. Driven by its Triple Double strategy, this restructuring plan focuses on using digital methods for rapid innovation and product development, along with strengthening consumer relations by operating through core regions. It also has a positive record of earnings surprises in the recent quarters. However, lackluster sales trend in the company’s key North American market remains a headwind. Also, gross margin in the last quarter was hurt by currency woes and a higher mix of off-price sales. Further, management anticipates near-term results to be hurt by the tough retail environment, which led to a bleak second quarter view. Nevertheless, second-quarter estimates have been stable ahead of the earnings release.”

A number of other equities analysts have also recently issued reports on NKE. Stifel Nicolaus reissued a buy rating and issued a $66.00 target price on shares of Nike in a report on Thursday, August 24th. Needham & Company LLC reissued a hold rating on shares of Nike in a report on Thursday, August 24th. Vetr cut Nike from a strong-buy rating to a buy rating and set a $59.57 target price for the company. in a report on Monday, August 28th. Jefferies Group cut Nike to a buy rating in a report on Tuesday, August 29th. Finally, Morgan Stanley reissued a buy rating and issued a $64.00 target price (down from $68.00) on shares of Nike in a report on Tuesday, August 29th. Four analysts have rated the stock with a sell rating, eighteen have issued a hold rating and twenty-one have given a buy rating to the company. The company has a consensus rating of Hold and an average target price of $62.19.

Nike (NYSE NKE) traded down $0.65 during trading on Wednesday, reaching $63.59. The company’s stock had a trading volume of 12,468,500 shares, compared to its average volume of 9,623,500. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.81 and a current ratio of 2.67. The firm has a market cap of $104,808.65, a PE ratio of 27.34, a price-to-earnings-growth ratio of 3.02 and a beta of 0.64. Nike has a 12-month low of $50.35 and a 12-month high of $65.18.

Nike (NYSE:NKE) last posted its quarterly earnings results on Tuesday, September 26th. The footwear maker reported $0.57 EPS for the quarter, beating the consensus estimate of $0.48 by $0.09. The firm had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.08 billion. Nike had a return on equity of 31.88% and a net margin of 11.47%. The company’s revenue for the quarter was up .1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.73 EPS. sell-side analysts expect that Nike will post 2.28 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 2nd. Investors of record on Monday, December 4th will be issued a dividend of $0.20 per share. The ex-dividend date is Friday, December 1st. This represents a $0.80 dividend on an annualized basis and a yield of 1.26%. This is a boost from Nike’s previous quarterly dividend of $0.18. Nike’s dividend payout ratio (DPR) is presently 34.04%.

In other news, EVP Monique S. Matheson sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, December 15th. The stock was sold at an average price of $65.00, for a total transaction of $650,000.00. Following the completion of the sale, the executive vice president now owns 23,248 shares in the company, valued at $1,511,120. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Chairman Mark G. Parker sold 135,000 shares of the business’s stock in a transaction that occurred on Monday, December 18th. The stock was sold at an average price of $65.00, for a total value of $8,775,000.00. Following the sale, the chairman now owns 1,502,830 shares of the company’s stock, valued at approximately $97,683,950. The disclosure for this sale can be found here. Insiders have sold 290,094 shares of company stock valued at $17,480,160 in the last quarter. 3.90% of the stock is currently owned by corporate insiders.

Several large investors have recently modified their holdings of NKE. Vanguard Group Inc. boosted its stake in shares of Nike by 2.5% in the second quarter. Vanguard Group Inc. now owns 99,605,408 shares of the footwear maker’s stock valued at $5,876,718,000 after buying an additional 2,452,993 shares during the period. Wellington Management Group LLP boosted its stake in shares of Nike by 5.0% in the first quarter. Wellington Management Group LLP now owns 49,907,256 shares of the footwear maker’s stock valued at $2,781,332,000 after buying an additional 2,375,447 shares during the period. Capital Research Global Investors boosted its stake in shares of Nike by 10.4% in the second quarter. Capital Research Global Investors now owns 24,135,396 shares of the footwear maker’s stock valued at $1,423,988,000 after buying an additional 2,274,869 shares during the period. Capital World Investors boosted its stake in shares of Nike by 58.7% in the second quarter. Capital World Investors now owns 21,779,409 shares of the footwear maker’s stock valued at $1,284,985,000 after buying an additional 8,058,601 shares during the period. Finally, Northern Trust Corp boosted its stake in shares of Nike by 6.7% in the second quarter. Northern Trust Corp now owns 21,502,892 shares of the footwear maker’s stock valued at $1,268,671,000 after buying an additional 1,344,638 shares during the period. Institutional investors own 62.56% of the company’s stock.

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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.

Analyst Recommendations for Nike (NYSE:NKE)

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