According to Zacks, “Shares of NIKE have underperformed the industry year to date. Further, the company provided a soft view for the fiscal fourth quarter, owing to adverse impacts of currency. The company expects reported revenues for the fiscal fourth quarter to be in a low-single digit. In addition, higher SG&A expenses owing to increased investments are likely to remain a drag. Further, higher input costs like cotton, chemicals and labor as well as the shift in supply-chain investments from the fiscal third quarter to the fourth quarter should hurt results. Nevertheless, the company has delivered positive earnings results for over three years now, with third-quarter fiscal 2019 marking the 27th straight quarter of earnings beat. Moreover, sales surpassed estimates for the eighth straight quarter. Strong progress on Consumer Direct Offense through innovation and focus on digital transformation are the key drivers. “
Several other research analysts also recently issued reports on the stock. Morgan Stanley set a $103.00 price target on shares of Nike and gave the stock a “buy” rating in a research report on Friday, March 22nd. Cowen set a $90.00 target price on shares of Nike and gave the company a “buy” rating in a research report on Friday, March 22nd. Wells Fargo & Co upped their target price on shares of Nike from $76.00 to $80.00 and gave the company a “market perform” rating in a research report on Friday, March 22nd. Bank of America upped their target price on shares of Nike from $55.00 to $60.00 and gave the company an “underperform” rating in a research report on Tuesday, March 19th. Finally, Telsey Advisory Group upped their price target on Nike from $92.00 to $95.00 and gave the company an “outperform” rating in a research note on Monday, March 18th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and twenty-four have given a buy rating to the stock. Nike currently has a consensus rating of “Buy” and a consensus target price of $87.10.
Nike (NYSE:NKE) last issued its quarterly earnings results on Thursday, March 21st. The footwear maker reported $0.68 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.65 by $0.03. The business had revenue of $9.61 billion for the quarter, compared to the consensus estimate of $9.60 billion. Nike had a net margin of 10.79% and a return on equity of 45.78%. The firm’s quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.68 EPS. On average, equities analysts expect that Nike will post 2.55 earnings per share for the current year.
In other news, EVP Monique S. Matheson sold 16,500 shares of the firm’s stock in a transaction that occurred on Tuesday, March 19th. The shares were sold at an average price of $88.21, for a total transaction of $1,455,465.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Eric D. Sprunk sold 40,004 shares of the stock in a transaction that occurred on Tuesday, April 16th. The shares were sold at an average price of $87.82, for a total value of $3,513,151.28. The disclosure for this sale can be found here. Insiders have sold a total of 166,504 shares of company stock valued at $14,320,816 over the last ninety days. Company insiders own 3.90% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in NKE. Oregon Public Employees Retirement Fund lifted its stake in shares of Nike by 6,517.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 35,283,152 shares of the footwear maker’s stock worth $476,000 after acquiring an additional 34,749,961 shares during the period. Norges Bank purchased a new position in shares of Nike during the 4th quarter valued at $892,899,000. FMR LLC lifted its position in shares of Nike by 27.0% during the 1st quarter. FMR LLC now owns 23,077,703 shares of the footwear maker’s stock valued at $1,943,374,000 after buying an additional 4,908,916 shares during the last quarter. BlackRock Inc. lifted its position in shares of Nike by 4.3% during the 4th quarter. BlackRock Inc. now owns 86,268,224 shares of the footwear maker’s stock valued at $6,395,928,000 after buying an additional 3,592,186 shares during the last quarter. Finally, MERIAN GLOBAL INVESTORS UK Ltd purchased a new position in shares of Nike during the 4th quarter valued at $224,658,000. 66.17% of the stock is owned by institutional investors.
NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.
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