NIKE (NYSE:NKE) Shares Down 13% – Here’s Why

NIKE, Inc. (NYSE:NKE)’s stock price was down 13% during mid-day trading on Thursday . The stock traded as low as $56.02 and last traded at $56.51. Approximately 30,029,261 shares were traded during mid-day trading, an increase of 130% from the average daily volume of 13,039,118 shares. The stock had previously closed at $64.96.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Dbs Bank upgraded shares of NIKE from a “hold” rating to a “strong-buy” rating in a report on Wednesday, March 5th. UBS Group lowered their price target on NIKE from $73.00 to $66.00 and set a “neutral” rating for the company in a report on Friday, March 21st. Guggenheim reiterated a “buy” rating and issued a $110.00 target price on shares of NIKE in a research note on Wednesday, February 12th. Deutsche Bank Aktiengesellschaft cut their target price on NIKE from $92.00 to $82.00 and set a “buy” rating on the stock in a research report on Monday, December 16th. Finally, Royal Bank of Canada cut their price objective on shares of NIKE from $67.00 to $66.00 and set a “sector perform” rating on the stock in a research note on Friday, March 21st. Fifteen analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, NIKE has an average rating of “Moderate Buy” and an average price target of $87.38.

NIKE Stock Performance

The company has a market capitalization of $82.07 billion, a price-to-earnings ratio of 17.13, a price-to-earnings-growth ratio of 2.52 and a beta of 1.02. The company has a current ratio of 2.22, a quick ratio of 1.51 and a debt-to-equity ratio of 0.57. The stock has a 50-day simple moving average of $73.66 and a 200-day simple moving average of $76.64.

NIKE (NYSE:NKE) last released its earnings results on Thursday, March 20th. The footwear maker reported $0.54 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.26. The company had revenue of $11.27 billion during the quarter, compared to the consensus estimate of $11.02 billion. NIKE had a net margin of 9.98% and a return on equity of 36.99%. The company’s revenue was down 9.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.98 EPS. On average, analysts anticipate that NIKE, Inc. will post 2.05 earnings per share for the current year.

NIKE Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, April 1st. Stockholders of record on Monday, March 3rd were issued a $0.40 dividend. The ex-dividend date was Monday, March 3rd. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.88%. NIKE’s dividend payout ratio (DPR) is 53.16%.

Insider Activity at NIKE

In other NIKE news, Chairman Mark G. Parker sold 169,732 shares of the firm’s stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $72.83, for a total value of $12,361,581.56. Following the transaction, the chairman now owns 896,632 shares of the company’s stock, valued at $65,301,708.56. This trade represents a 15.92 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. PDT Partners LLC bought a new stake in NIKE in the third quarter valued at $229,000. Erste Asset Management GmbH acquired a new stake in shares of NIKE in the 3rd quarter worth about $1,688,000. Investment Management Corp of Ontario increased its holdings in shares of NIKE by 49.4% in the 3rd quarter. Investment Management Corp of Ontario now owns 40,238 shares of the footwear maker’s stock worth $3,557,000 after acquiring an additional 13,300 shares during the period. Ingalls & Snyder LLC lifted its position in NIKE by 41.1% in the 3rd quarter. Ingalls & Snyder LLC now owns 4,154 shares of the footwear maker’s stock valued at $367,000 after purchasing an additional 1,210 shares during the last quarter. Finally, IHT Wealth Management LLC boosted its stake in NIKE by 29.4% during the 3rd quarter. IHT Wealth Management LLC now owns 18,700 shares of the footwear maker’s stock valued at $1,657,000 after purchasing an additional 4,254 shares during the period. 64.25% of the stock is currently owned by institutional investors and hedge funds.

NIKE Company Profile

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.