NIKE (NYSE:NKE) Rating Lowered to “Sell” at Wall Street Zen

by · The Markets Daily

NIKE (NYSE:NKE – Get Free Report) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday, Wall Street Zen reports.

NKE has been the topic of a number of other reports. Guggenheim reiterated a “buy” rating and issued a $50.00 price target (down from $60.00) on shares of NIKE in a report on Friday. Argus upgraded NIKE to a “strong-buy” rating in a research note on Wednesday, July 15th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $45.00 price objective on shares of NIKE in a research report on Friday. DZ Bank reiterated a “buy” rating on shares of NIKE in a research note on Tuesday, June 30th. Finally, BNP Paribas Exane set a $19.00 target price on shares of NIKE and gave the stock an “underperform” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-two have issued a Hold rating and eight have assigned a Sell rating to the company. According to MarketBeat, NIKE presently has a consensus rating of “Hold” and an average target price of $42.12.

Read Our Latest Stock Report on NKE

NIKE Price Performance

Shares of NKE opened at $33.88 on Friday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.39 and a current ratio of 2.07. The company has a 50 day moving average price of $38.88 and a 200-day moving average price of $42.79. NIKE has a fifty-two week low of $31.97 and a fifty-two week high of $74.78. The stock has a market capitalization of $50.27 billion, a PE ratio of 16.29, a PEG ratio of 2.58 and a beta of 1.09.

NIKE (NYSE:NKE – Get Free Report) last issued its quarterly earnings data on Thursday, October 1st. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.05. The company had revenue of $11.21 billion for the quarter, compared to analyst estimates of $11.32 billion. NIKE had a net margin of 6.74% and a return on equity of 15.94%. NIKE’s revenue was down 4.3% compared to the same quarter last year. During the same period last year, the company posted $0.49 earnings per share. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS. Equities analysts predict that NIKE will post 1.46 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other NIKE news, insider Amy Montagne sold 4,867 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the sale, the insider owned 57,436 shares of the company’s stock, valued at approximately $2,415,183.80. This trade represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Philip McCartney sold 2,559 shares of the company’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $37.59, for a total transaction of $96,192.81. Following the transaction, the executive vice president owned 78,121 shares in the company, valued at approximately $2,936,568.39. This trade represents a 3.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 14,974 shares of company stock valued at $600,126. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of NIKE

Several large investors have recently bought and sold shares of NKE. Westerkirk Capital Inc. raised its stake in NIKE by 52.4% in the 4th quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker’s stock worth $8,360,000 after acquiring an additional 45,100 shares during the last quarter. OMERS ADMINISTRATION Corp increased its holdings in shares of NIKE by 77.9% in the fourth quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker’s stock valued at $160,943,000 after purchasing an additional 1,106,499 shares during the period. OneDigital Investment Advisors LLC raised its stake in shares of NIKE by 32.8% in the second quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker’s stock worth $10,028,000 after purchasing an additional 60,375 shares during the last quarter. Quantitative Investment Management LLC acquired a new stake in shares of NIKE during the second quarter worth about $2,459,000. Finally, Deutsche Bank AG boosted its position in NIKE by 8.0% in the second quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker’s stock valued at $146,410,000 after buying an additional 264,576 shares during the last quarter. Hedge funds and other institutional investors own 64.25% of the company’s stock.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

  • Positive Sentiment: NIKE reported fiscal Q1 EPS of $0.48, above the $0.43 analyst consensus. The company also retains a strong balance sheet, with approximately $8.4 billion in cash and short-term investments, while its dividend yield is approaching 5%. NIKE Posts Earnings Results
  • Positive Sentiment: Some analysts see the selloff as an opportunity. Freedom Broker upgraded NKE from “sell” to “buy” with a $51 price target, while BTIG maintained a “buy” rating with a $50 target. Bernstein called the stock “de-risked” following the earnings release. Bernstein says Nike stock is de-risked
  • Neutral Sentiment: NIKE is launching the Pace restructuring program, targeting approximately $2.5 billion in savings. Management said the plan is intended to simplify operations and support performance categories, but implementation will include further job cuts likely extending into 2027. NIKE fiscal 2027 first-quarter results
  • Neutral Sentiment: The company’s dividend appears supported by its liquidity and history of 24 consecutive years of increases, although a higher yield also reflects the stock’s substantial decline and investors’ concerns about future earnings.
  • Negative Sentiment: Fiscal Q1 revenue fell 4.3% year over year to $11.21 billion, below the $11.32 billion consensus estimate. Weakness in Greater China, Sportswear and Jordan continued to weigh on sales, while competition and changing consumer preferences are pressuring the brand. Nike plans more job cuts and forecasts revenue drop
  • Negative Sentiment: Management expects fiscal 2027 revenue to decline by a high-single-digit percentage and provided EPS guidance of $1.15–$1.35, well below the roughly $1.66 analyst consensus. The outlook suggests Nike’s turnaround may take longer and be more costly than investors expected. Nike shares fall after weak outlook and layoffs
  • Negative Sentiment: Several firms reduced price targets, including Citi to $32 and JPMorgan to $33, with neutral or underweight ratings. Zacks also placed NKE on its Strong Sell list, reinforcing concerns about margin pressure, China weakness and delayed recovery.

About NIKE

(Get Free Report)

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.

Further Reading