Occidental Asset Management LLC, a prominent institutional investor, has increased its position in NIKE, Inc. (NYSE:NKE) during the second quarter, according to its recent filing with the Securities and Exchange Commission. The company reported that it acquired an additional 1,188 shares of the footwear giant’s stock, representing a 7.6% increase in its holdings. As a result, Occidental Asset Management LLC now owns 16,871 shares of NIKE stock worth $1,862,000.
The disclosure comes after NIKE released its quarterly earnings data on June 29th. The report revealed that the footwear maker fell short of analysts’ estimations by reporting earnings per share (EPS) of $0.66 compared to the consensus estimate of $0.68. Despite this setback, NIKE demonstrated a net margin of 9.90% and a return on equity of 34.01%. Additionally, the company achieved revenue of $12.80 billion for the quarter, surpassing expectations set at $12.58 billion. It is noteworthy that NIKE’s revenue for this period showed a 4.9% increase from the same time last year.. Analysts forecast that NIKE will post earnings per share of 3.71 for the entire current year.
Recently, several research firms have provided their evaluation on NKE’s performance. BNP Paribas downgraded NIKE from a “neutral” rating to an “underperform” rating in a research note on July 25th., whereas Raymond James reduced their target price for NKE from $135 to $128 and maintained an “outperform” rating for the company in their analysis on June 30th . Another firm named Royal Bank of Canada also lowered its target price for NKE from $138 to $134 and maintained an “outperform” rating in their research note published on June 30th . Alongside, HSBC decreased NKE’s target price from $120 to $112 in their analysis presented earlier this week. Lastly, Wells Fargo & Company reduced the target value for NKE from $130 to $120 and assigned an “overweight” rating for the company in their recent report.
Overall, out of the analysts that have covered NIKE, three have rated it as a sell, nine as hold, and twenty-three as buy. Based on Bloomberg.com data, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $129.07.
It is important to note that the information contained in this article stems from publicly available sources and represents historical data up until September 18th, 2023. Investors are advised to conduct thorough research and obtain professional advice before making any investment decisions based on this information.
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Institutional Investors and Hedge Funds Show Growing Interest in NIKE as Shares Remain Volatile
In recent months, various institutional investors and hedge funds have been making changes to their positions in global sportswear giant, NIKE. America First Investment Advisors LLC, Tucker Asset Management LLC, Financial Freedom LLC, Ruedi Wealth Management Inc., and Venturi Wealth Management LLC are among those who have acquired new stakes in the company.
America First Investment Advisors LLC purchased a stake worth $27,000 in the first quarter of this year, while Tucker Asset Management LLC followed suit by acquiring a stake worth $29,000 during the same period. Similarly, Financial Freedom LLC and Ruedi Wealth Management Inc. both acquired stakes worth $29,000 and $30,000 respectively during the fourth quarter. Lastly, Venturi Wealth Management LLC bought a position in NIKE shares valued at $35,000 during the first quarter.
These new acquisitions by institutional investors and hedge funds indicate a growing interest in NIKE as an investment opportunity. Currently, approximately 63.42% of the company’s stock is owned by such investors.
As of September 18, 2023, NIKE’s stock traded at $96.00 per share during midday trading on Monday. The trading volume stood at 1,743,653 shares on that day compared to its average volume of 6,901,841 shares. With a market capitalization of $146.88 billion, NIKE has positioned itself as a major player in the global sportswear industry.
NIKE boasts a current ratio of 2.72 and a quick ratio of 1.81 – indicators of its liquidity and ability to cover short-term obligations effectively. The company also maintains a debt-to-equity ratio of 0.64, which reflects its conservative level of leverage.
With a price-to-earnings (P/E) ratio of 29.74 and a price/earnings-to-growth (PEG) ratio of 1.72, NIKE’s valuation suggests that investors are willing to pay a premium for the company’s earnings growth potential. The beta value of 1.12 indicates that the stock is slightly more volatile than the market as a whole.
Over the past year, NIKE’s share price has ranged from a low of $82.22 to a high of $131.31, demonstrating fluctuations in investor sentiment and market conditions. Currently, the company’s fifty-day simple moving average stands at $104.70, while its 200-day simple moving average is $112.67.
Research firms have recently issued reports on NIKE’s performance and outlook for future growth. Notably, BNP Paribas downgraded its rating from “neutral” to “underperform” on July 25th. Raymond James reduced their target price on NIKE from $135.00 to $128.00 and assigned it an “outperform” rating in June. Royal Bank of Canada also lowered their target price from $138.00 to $134.00 and maintained an “outperform” rating around the same time.
HSBC decreased its target price for NIKE from $120.00 to $112.00 in August, while Wells Fargo & Company adjusted theirs downwards from $130.00 to $120.00 in July while maintaining an “overweight” rating for the stock.
Currently, three research analysts rate NIKE as a sell, nine assign a hold rating, and twenty-three designate it as a buy opportunity according to data compiled by Bloomberg.com. Based on this information, the consensus among analysts classifies NIKE as a “Moderate Buy,” with a consensus price target of $129.07.
In terms of dividends, NIKE recently announced its quarterly dividend payment scheduled for Monday, October 2nd this year. Shareholders of record as of Tuesday, September 5th will receive a dividend amounting to $0.34 per share. With an ex-dividend date of Friday, September 1st, the annualized dividend represents a yield of 1.42% based on NIKE’s current stock price. The company’s payout ratio currently stands at 42.11%.
In other news, EVP Monique S. Matheson sold 40,000 shares of NIKE stock on Tuesday, August 8th for an average price of $108.59 per share, amounting to a total value of $4,343,600. Following this sale, Matheson now holds 44,736 shares directly in NIKE, with an estimated value of $4,857,882.24.
Another significant transaction occurred when Chairman Mark G. Parker sold 110,000 shares of NIKE stock for $108.58 per share on Tuesday, July 18th – netting a total value of $11,943,800. After the sale was completed, Parker directly owns 1,334,781 NIKE shares valued at approximately $144,930,520.98.
In the past ninety days alone, insiders have collectively sold 157,251 shares of NIKE stock with a total value exceeding $17 million. Company insiders currently possess just
