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

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

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. China Renaissance began coverage on shares of NIKE in a research report on Wednesday, March 19th. They set a “hold” rating for the company. Wells Fargo & Company cut their price objective on NIKE from $90.00 to $85.00 and set an “overweight” rating for the company in a research report on Friday, March 21st. BMO Capital Markets cut their price objective on NIKE from $95.00 to $92.00 and set an “outperform” rating on the stock in a report on Friday, March 21st. Barclays cut their target price on shares of NIKE from $79.00 to $70.00 and set an “equal weight” rating on the stock in a research note on Friday, December 20th. Finally, UBS Group lowered their target price on NIKE from $73.00 to $66.00 and set a “neutral” rating on the stock in a research note on Friday, March 21st. Fifteen research analysts have rated the stock with a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, NIKE has a consensus rating of “Moderate Buy” and an average price target of $87.38.

NIKE Price Performance

The business’s fifty day moving average price is $73.66 and its 200-day moving average price is $76.64. 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 company has a market capitalization of $82.07 billion, a P/E ratio of 17.13, a P/E/G ratio of 2.52 and a beta of 1.02.

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

NIKE Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, April 1st. Shareholders of record on Monday, March 3rd were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $1.60 annualized dividend and a yield of 2.88%. NIKE’s payout ratio is 53.16%.

Insider Buying and Selling

In related news, Chairman Mark G. Parker sold 169,732 shares of the firm’s stock in a transaction on Friday, February 14th. The stock was sold at an average price of $72.83, for a total value of $12,361,581.56. Following the completion of the sale, 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 through this link. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of NIKE

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

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.