September 17, 2023
Sanders Morris Harris LLC Acquires Stake in NIKE, Inc.
In the second quarter of this year, Sanders Morris Harris LLC made a significant investment by purchasing a new stake in NIKE, Inc. This move was confirmed in the company’s most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 4,130 shares of the well-known footwear maker’s stock, valued at approximately $451,000.
Various equities analysts have provided their insights on NIKE in recent reports. Wedbush, for instance, increased its price target on NIKE from $129.00 to $131.00 and gave the company an “outperform” rating on June 30th. In another report on July 25th, KeyCorp initiated coverage on NIKE and assigned it a “sector weight” rating. VNET Group also reiterated its “maintains” rating on NIKE shares on June 30th. Conversely, Robert W. Baird reduced their price target on NIKE from $138.00 to $130.00 while maintaining an “outperform” rating for the company in a report issued on July 3rd. Citigroup also lowered its price target for NIKE from $125.00 to $109.00 in a report released on June 13th.
According to Bloomberg’s analysis of these ratings, three investment analysts have rated the stock as a sell, ten analysts have given it a hold recommendation, and twenty-two analysts have assigned it a buy rating. Consequently, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $130.28.
On Friday morning, shares of NIKE opened at $96.26 per stock unit. The company boasts robust liquidity metrics with a quick ratio of 1.81 and current ratio of 2.72 indicating its ability to meet short-term obligations. Additionally, NIKE, Inc. maintains a debt-to-equity ratio of 0.64. Over the past 12 months, NIKE’s stock has fluctuated between a low of $82.22 and a high of $131.31, indicating some level of volatility in the market for this particular company. In terms of moving averages, its fifty-day simple moving average stands at $104.70 while the 200-day simple moving average is $112.71.
With a market capitalization of $147.27 billion and a price-earnings ratio of 29.80, NIKE, Inc remains one of the leading players in the footwear industry. Furthermore, it has demonstrated growth potential as evidenced by its price-to-earnings-growth ratio (PEG) standing at 1.72 indicating reasonable value relative to its expected earnings growth rate.
It will be interesting to observe how Sanders Morris Harris LLC’s acquisition impacts both their own portfolio and NIKE’s overall performance in the coming quarters as market dynamics continue to unfold.
Changes in Hedge Fund Positions and Insider Trading: A Closer Look at NIKE, Inc. (NYSE: NKE)
In recent months, there have been notable changes in the positions of various hedge funds and institutional investors regarding NIKE, Inc. (NYSE: NKE). Meiji Yasuda Life Insurance Co increased its stake in the footwear maker during the fourth quarter by 0.3%, now owning 29,026 shares valued at $3,396,000 after purchasing an additional 80 shares. Similarly, Vestcor Inc raised its holdings in NIKE by 0.3% during the same period, with 29,977 shares valued at $3,508,000 after acquiring an additional 81 shares.
CWS Financial Advisors LLC also demonstrated an increase in its holdings of NIKE stock during the first quarter. Their stake rose by 2.9%, with a total ownership of 2,896 shares valued at $355,000 after purchasing an additional 82 shares. Essex Savings Bank followed suit and acquired an additional 83 shares during the same quarter to bring their holdings to a total of 6,940 shares valued at $851,000.
Lastly, West Family Investments Inc. raised its stake in NIKE by 2.9% during the first quarter as well. They now own 3,029 shares valued at $371,000 after acquiring an additional 84 shares.
Overall, it is important to note that hedge funds and other institutional investors now hold approximately 63.42% of NIKE’s outstanding stock.
In other news pertaining to NIKE’s management team, Vice President Johanna Nielsen sold a substantial number of company shares on August 3rd. The transaction involved selling 1,706 shares at an average price of $107.00 per share for a total transaction value of $182,542. Nielsen currently holds direct ownership of only 954 shares valued at $102,078.
Another significant sale occurred when Executive Vice President Monique S. Matheson sold off a substantial 40,000 shares on August 8th. The shares were sold at an average price of $108.59 per share for a total value of $4,343,600. Following the transaction, Matheson now directly holds 44,736 NIKE shares valued at $4,857,882.24.
Considering insider trading activities within the company, another sale by VP Johanna Nielsen was reported on August 3rd. The Vice President sold 1,706 shares at an average price of $107.00 per share for a total value of $182,542. Nielsen’s current direct ownership stands at 954 NIKE shares worth $102,078.
It is worth mentioning that insiders have sold a cumulative total of 157,251 NIKE shares over the past three months with an estimated total value of $17,063,257. Insiders’ current ownership represents only about 0.50% of the company’s stock.
Moving on to analyst opinions regarding NIKE stock, several equities analysts have provided their insights and ratings. Wedbush raised its price target from $129.00 to $131.00 and labeled the company’s stock as “outperform” in their June 30th report. On July 25th, KeyCorp initiated coverage on NIKE with a “sector weight” rating for the companys performance.
VNET Group reaffirmed its “maintains” rating on NIKE shares in its report dated June 30th. In contrast to Wedbush’s positive sentiment towards the stock, Robert W. Baird reduced its target price from $138.00 to $130.00 while maintaining an “outperform” rating on July 3rd.
Adding to these varying opinions is Citigroup’s downgrade in their price target from $125.00 to $109.00 in its report dated June 13th. Cumulatively speaking though; three analysts have rated the stock as “sell”, ten have given a “hold” rating, and twenty-two have assigned a “buy” rating to NIKE. Based on Bloomberg data, the stock currently holds a consensus rating of “Moderate Buy” with an average price target of $130.28.
On June 29th, NIKE last released its quarterly earnings report which revealed the company’s financial performance in detail. The footwear maker reported an EPS (earnings per share) of $0.66 for the quarter, missing analysts’ consensus estimates by ($0.02). Despite this slight drawback, NIKE achieved a return on equity of 34.01% and a net margin of 9.90%. Additionally, the company generated revenue totaling $12.80 billion during the period, surpassing analyst estimates of $12.58 billion.
It is worth noting that compared to the same quarter last year, NIKE experienced a revenue growth of 4.9%. While research analysts predict an EPS of 3.71 for the current fiscal year based on these results.
In terms of dividends, NIKE recently announced its next quarterly dividend which will be paid on October 2nd to investors holding shares on record as of September 5th. The dividend