Published On: Fri, Sep 9th, 2016

Nike Inc. (NKE) Upgraded at Zacks Investment Research

Nike Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “While a strong performer from the bottom line perspective, Nike’s top line has been missing estimates for quite some time due to adverse currency movements. Evidently, the company expects lingering currency woes to strongly hurt revenues in first-half fiscal 2017. Also, the company’s future orders witnessed a considerable slowdown and lagged expectations in the fourth quarter due to stiff competition from rivals. This further reduces the chances of a top line beat in coming quarters. However, Nike’s positive surprise history reveals that it has been gaining from its customer-centric approach, innovative products and strong portfolio. This along with Nike’s desire for increasing its global footprint, popularity and market share demonstrates its growth appetite. Estimates have been stable ahead of the company’s first-quarter earnings release. The company has positive record of earnings surprises in recent quarters.”
Several other research firms have also weighed in on NKE. B. Riley lowered shares of Nike from a “buy” rating to a “neutral” rating and set a $62.00 target price on the stock. in a report on Friday, August 26th. Stifel Nicolaus reaffirmed a “buy” rating and issued a $68.00 target price on shares of Nike in a report on Friday, August 26th. Brean Capital reaffirmed a “buy” rating and issued a $62.00 target price on shares of Nike in a report on Sunday, August 21st. Vetr raised shares of Nike from a “sell” rating to a “hold” rating and set a $56.94 target price on the stock in a report on Monday, August 29th. Finally, Deutsche Bank AG reaffirmed a “buy” rating on shares of Nike in a report on Sunday, July 17th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and twenty-two have issued a buy rating to the company’s stock. Nike has a consensus rating of “Buy” and a consensus target price of $66.34.

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Shares of Nike (NYSE:NKE) traded down 1.113% during trading on Friday, hitting $55.545. 8,126,172 shares of the stock traded hands. Nike has a 1-year low of $51.48 and a 1-year high of $68.20. The company has a market cap of $93.18 billion, a PE ratio of 25.715 and a beta of 0.52. The company has a 50 day moving average of $57.03 and a 200-day moving average of $57.90.
Nike (NYSE:NKE) last announced its quarterly earnings results on Tuesday, June 28th. The footwear maker reported $0.49 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.01. The firm had revenue of $8.24 billion for the quarter, compared to analyst estimates of $8.28 billion. Nike had a net margin of 11.61% and a return on equity of 29.57%. The business’s revenue for the quarter was up 6.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.49 EPS. On average, equities analysts anticipate that Nike will post $2.40 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Tuesday, September 6th will be issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.14%. The ex-dividend date is Thursday, September 1st. Nike’s dividend payout ratio is currently 29.63%.
In related news, EVP Hilary K. Krane sold 100,000 shares of the firm’s stock in a transaction on Monday, July 25th. The stock was sold at an average price of $56.99, for a total value of $5,699,000.00. Following the transaction, the executive vice president now owns 310,795 shares in the company, valued at $17,712,207.05. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP John F. Slusher sold 72,696 shares of the firm’s stock in a transaction on Tuesday, July 26th. The stock was sold at an average price of $57.75, for a total value of $4,198,194.00. Following the completion of the transaction, the executive vice president now owns 231,861 shares in the company, valued at approximately $13,389,972.75. The disclosure for this sale can be found here. Insiders own 3.90% of the company’s stock.
Other hedge funds and institutional investors recently modified their holdings of the company. Kanawha Capital Management LLC boosted its position in shares of Nike by 4.2% in the second quarter. Kanawha Capital Management LLC now owns 139,137 shares of the footwear maker’s stock worth $7,680,000 after buying an additional 5,562 shares during the last quarter. Gerber Kawasaki Wealth & Investment Management boosted its position in shares of Nike by 31.1% in the second quarter. Gerber Kawasaki Wealth & Investment Management now owns 4,911 shares of the footwear maker’s stock worth $271,000 after buying an additional 1,165 shares during the last quarter. Alley Co LLC boosted its position in shares of Nike by 7.6% in the second quarter. Alley Co LLC now owns 30,042 shares of the footwear maker’s stock worth $1,658,000 after buying an additional 2,123 shares during the last quarter. Nordea Investment Management AB boosted its position in shares of Nike by 0.4% in the second quarter. Nordea Investment Management AB now owns 54,179 shares of the footwear maker’s stock worth $2,991,000 after buying an additional 203 shares during the last quarter. Finally, Proficio Capital Partners LLC boosted its position in shares of Nike by 17.8% in the second quarter. Proficio Capital Partners LLC now owns 7,919 shares of the footwear maker’s stock worth $439,000 after buying an additional 1,196 shares during the last quarter. Institutional investors own 62.33% 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 sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites (which the Company refers to as its Direct to Consumer or DTC operations), and through a mix of independent distributors and licensees throughout the world.
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