Published On: Thu, Sep 22nd, 2016

Nike Inc. (NKE) Upgraded to Hold by Zacks Investment Research

Nike Inc. (NYSE:NKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Nike’s customer-centric approach, innovative products and strong portfolio has helped strengthened its position in the footwear and athletic apparel industry. The company also continues to seek opportunities for increasing its market share via acquisitions, contracts to supply sports-related assortments, and development of its eCommerce and DTC business model. Nike’s strategic initiatives are well reflected from its positive earnings surprise streak over the past 16 straight quarters. However, 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. Estimates have been stable ahead of the company’s first-quarter earnings release.”
A number of other brokerages have also recently issued reports on NKE. B. Riley reaffirmed a “buy” rating and issued a $66.00 target price on shares of Nike in a report on Monday, June 27th. Susquehanna reaffirmed a “positive” rating and issued a $74.00 target price on shares of Nike in a report on Wednesday, June 22nd. Cowen and Company reaffirmed a “buy” rating on shares of Nike in a report on Wednesday, June 22nd. Piper Jaffray Cos. reissued an “overweight” rating and set a $58.00 price objective (down from $69.00) on shares of Nike in a research note on Wednesday, June 29th. Finally, Deutsche Bank AG reissued a “buy” rating on shares of Nike in a research note on Wednesday, August 10th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and twenty-two have assigned a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $65.63.

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Shares of Nike (NYSE:NKE) opened at 55.34 on Thursday. The firm’s 50-day moving average price is $56.82 and its 200 day moving average price is $57.46. Nike has a 1-year low of $51.48 and a 1-year high of $68.19. The stock has a market capitalization of $92.84 billion, a price-to-earnings ratio of 25.62 and a beta of 0.52.
Nike (NYSE:NKE) last issued its earnings results on Tuesday, June 28th. The footwear maker reported $0.49 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.48 by $0.01. Nike had a net margin of 11.61% and a return on equity of 29.57%. The company earned $8.24 billion during the quarter, compared to analysts’ expectations of $8.28 billion. During the same period last year, the company posted $0.49 earnings per share. The firm’s quarterly revenue was up 6.0% compared to the same quarter last year. Equities research analysts expect that Nike will post $2.40 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Tuesday, September 6th will be paid a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.16%. The ex-dividend date of this dividend is Thursday, September 1st. Nike’s dividend payout ratio is currently 29.63%.
In related news, EVP John F. Slusher sold 72,696 shares of the business’s stock in a transaction that occurred on Tuesday, July 26th. The shares were sold at an average price of $57.75, for a total value of $4,198,194.00. Following the sale, the executive vice president now directly owns 231,861 shares in the company, valued at approximately $13,389,972.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Hilary K. Krane sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, July 25th. The stock was sold at an average price of $56.99, for a total transaction of $5,699,000.00. Following the completion of the sale, the executive vice president now owns 310,795 shares in the company, valued at $17,712,207.05. The disclosure for this sale can be found here. 3.90% of the stock is currently owned by insiders.
Several hedge funds have recently added to or reduced their stakes in the company. CapWealth Advisors LLC raised its stake in Nike by 183.3% in the first quarter. CapWealth Advisors LLC now owns 1,700 shares of the footwear maker’s stock worth $104,000 after buying an additional 1,100 shares in the last quarter. Brick & Kyle Associates raised its stake in Nike by 12.5% in the first quarter. Brick & Kyle Associates now owns 1,800 shares of the footwear maker’s stock worth $111,000 after buying an additional 200 shares in the last quarter. SevenBridge Financial Group LLC purchased a new stake in Nike during the second quarter worth about $100,000. Cribstone Capital Management LLC purchased a new stake in Nike during the second quarter worth about $106,000. Finally, Gierl Augustine Investment Management Inc raised its stake in Nike by 0.3% in the second quarter. Gierl Augustine Investment Management Inc now owns 2,003 shares of the footwear maker’s stock worth $111,000 after buying an additional 6 shares in the last quarter. Institutional investors and hedge funds own 62.04% 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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