NIKE (NYSE:NKE) Sets New 52-Week Low – Here’s Why

by · The Markets Daily

NIKE, Inc. (NYSE:NKE – Get Free Report) shares reached a new 52-week low on Monday . The stock traded as low as $35.38 and last traded at $35.48, with a volume of 4441841 shares traded. The stock had previously closed at $35.51.

More NIKE News

Here are the key news stories impacting NIKE this week:

  • Positive Sentiment: NIKE is scheduled to pay its quarterly dividend next week, offering shareholders ongoing income while the stock remains depressed. The dividend may provide a modest cushion for income-focused investors. Nike to pay dividends next month; Here’s how much 100 NKE shares will earn
  • Neutral Sentiment: NIKE’s low share price is attracting investor attention, with some viewing the decline as a potential turnaround opportunity. However, the coverage emphasizes that the stock’s depressed valuation reflects significant business concerns rather than a clear recovery. Why Is Everyone Talking About Nike Stock?
  • Negative Sentiment: Soccer star Kylian Mbappé has ended his nearly 20-year relationship with NIKE and joined On, dealing a reputational and marketing setback to NIKE as On expands into soccer. Kylian Mbappé on ending 20-year journey with Nike
  • Negative Sentiment: Analysts and market commentators cite rising competition from On Holding, higher bond yields and the possibility of NIKE’s removal from the S&P 500 as additional pressure on the stock. Nike Stock Hits New Low as On Holding Competition Heats Up
  • Negative Sentiment: Cost-of-living pressures could reduce discretionary consumer spending, while questions about the scale and timing of NIKE’s comeback are limiting enthusiasm for the turnaround story. Huge News for Nike Stock Investors

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on NKE shares. Needham & Company LLC reiterated a “hold” rating on shares of NIKE in a report on Thursday, June 4th. Wells Fargo & Company reduced their target price on NIKE from $45.00 to $40.00 and set an “equal weight” rating for the company in a report on Wednesday, July 1st. Zacks Research upgraded NIKE from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 19th. Morgan Stanley set a $31.00 price target on NIKE and gave the stock an “underweight” rating in a research note on Thursday, September 10th. Finally, BNP Paribas Exane reiterated an “underperform” rating on shares of NIKE in a research report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have given a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $48.77.

Check Out Our Latest Report on NIKE

NIKE Stock Up 0.1%

The stock has a market capitalization of $52.73 billion, a price-to-earnings ratio of 17.00, a price-to-earnings-growth ratio of 1.80 and a beta of 1.10. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40. The business’s 50-day moving average is $40.33 and its two-hundred day moving average is $44.25.

NIKE (NYSE:NKE – Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The footwear maker reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.09. The company had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. NIKE’s quarterly revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.14 EPS. Equities analysts anticipate that NIKE, Inc. will post 1.69 EPS for the current year.

NIKE Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a $0.41 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.6%. NIKE’s dividend payout ratio is 78.47%.

Insider Buying and Selling

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total value of $137,992.89. Following the completion of the sale, the chief operating officer owned 104,862 shares of the company’s stock, valued at approximately $3,941,762.58. This trade represents a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the transaction, the chief financial officer owned 82,165 shares in the company, valued at approximately $3,418,064. The trade was a 2.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,974 shares of company stock worth $600,126 in the last three months. Company insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NKE. J. Stern & Co. LLP grew its stake in shares of NIKE by 49,010.4% in the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock valued at $3,061,555,000 after buying an additional 47,956,692 shares during the period. Norges Bank purchased a new stake in shares of NIKE during the 4th quarter valued at approximately $829,956,000. Flossbach Von Storch SE purchased a new stake in shares of NIKE during the 2nd quarter valued at approximately $488,714,000. Capital World Investors lifted its holdings in NIKE by 16.2% in the fourth quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock valued at $3,126,246,000 after acquiring an additional 6,830,938 shares during the last quarter. Finally, Capital International Investors lifted its holdings in NIKE by 83.3% in the fourth quarter. Capital International Investors now owns 7,642,382 shares of the footwear maker’s stock valued at $486,895,000 after acquiring an additional 3,472,515 shares during the last quarter. Institutional investors and hedge funds own 64.25% of the company’s stock.

About NIKE

(Get Free Report)

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE’s offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.

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