Zacks Investment Research downgraded shares of Nike (NYSE:NKE) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.
According to Zacks, “NIKE has been witnessing lackluster sales trend in its key North American market, which remains a major headwind. While earnings and sales topped estimates for second-quarter fiscal 2018, the North America business continued to struggle backed by uninspiring product assortments, increased promotions and intensified competition. We believe the promotional environment in North America is likely to continue hurting the segment’s results. Additionally, the company’s strained margins and higher SG&A expenses are likely to weigh on results throughout fiscal 2018. Consequently, the company reiterated previously outlined soft outlook for fiscal 2018. However, NIKE surpassed the sector in the past three months driven by strength in international business and the global NIKE Direct business. Additionally, a strong line-up of product innovations to be launched in the back half of the fiscal year is likely to enhance performance.”
A number of other brokerages have also issued reports on NKE. Oppenheimer upgraded Nike to a buy rating in a research report on Wednesday, January 31st. Stifel Nicolaus increased their target price on Nike from $74.00 to $80.00 and gave the company a buy rating in a research report on Friday, February 16th. Citigroup reiterated a buy rating and set a $78.00 target price (up previously from $74.00) on shares of Nike in a research report on Wednesday, January 31st. Buckingham Research increased their target price on Nike from $72.00 to $75.00 and gave the company a buy rating in a research report on Thursday, February 15th. Finally, UBS Group set a $76.00 target price on Nike and gave the company a buy rating in a research report on Thursday, February 1st. Three equities research analysts have rated the stock with a sell rating, sixteen have given a hold rating and twenty-three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $65.61.
Nike (NYSE:NKE) last announced its earnings results on Thursday, December 21st. The footwear maker reported $0.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.06. Nike had a return on equity of 31.64% and a net margin of 11.13%. The firm had revenue of $8.55 billion for the quarter, compared to analyst estimates of $8.39 billion. During the same quarter last year, the firm posted $0.50 EPS. The business’s revenue was up 4.6% on a year-over-year basis. analysts expect that Nike will post 2.26 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 2nd. Investors of record on Monday, March 5th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.19%. The ex-dividend date is Friday, March 2nd. Nike’s payout ratio is 34.63%.
In related news, EVP Monique S. Matheson sold 10,000 shares of the firm’s stock in a transaction dated Monday, December 11th. The stock was sold at an average price of $62.00, for a total transaction of $620,000.00. Following the completion of the sale, the executive vice president now directly owns 23,248 shares of the company’s stock, valued at approximately $1,441,376. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Mark G. Parker sold 135,000 shares of the firm’s stock in a transaction dated 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 directly owns 1,502,830 shares of the company’s stock, valued at $97,683,950. The disclosure for this sale can be found here. Insiders have sold a total of 932,896 shares of company stock valued at $59,594,217 over the last three months. Corporate insiders own 3.90% of the company’s stock.
Several large investors have recently modified their holdings of NKE. Envestnet Asset Management Inc. boosted its holdings in Nike by 15.6% during the 4th quarter. Envestnet Asset Management Inc. now owns 909,933 shares of the footwear maker’s stock valued at $56,915,000 after acquiring an additional 122,908 shares during the period. CNB Bank purchased a new position in Nike during the 4th quarter valued at about $470,000. Intercontinental Wealth Advisors LLC purchased a new position in Nike during the 4th quarter valued at about $228,000. Pin Oak Investment Advisors Inc. purchased a new position in Nike during the 4th quarter valued at about $371,000. Finally, GUARDCAP ASSET MANAGEMENT Ltd purchased a new position in Nike during the 4th quarter valued at about $10,997,000. 61.57% of the stock is owned by hedge funds and other institutional investors.
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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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