NIKE (NYSE:NKE) Shares Gap Down on Analyst Downgrade

Shares of NIKE, Inc. (NYSE:NKE) gapped down before the market opened on Friday after Bank of America lowered their price target on the stock from $84.00 to $73.00. The stock had previously closed at $65.63, but opened at $59.20. Bank of America currently has a buy rating on the stock. NIKE shares last traded at $59.4820, with a volume of 19,209,855 shares trading hands.

NKE has been the topic of several other reports. UBS Group reaffirmed a “market perform” rating and set a $75.00 price objective on shares of NIKE in a research note on Wednesday, December 10th. DZ Bank upgraded NIKE from a “hold” rating to a “buy” rating in a research report on Wednesday, October 1st. Truist Financial reaffirmed a “buy” rating and set a $85.00 price target on shares of NIKE in a report on Wednesday, October 1st. BTIG Research reissued a “buy” rating and issued a $100.00 price objective on shares of NIKE in a research note on Friday, December 12th. Finally, Sanford C. Bernstein set a $85.00 target price on NIKE and gave the stock an “outperform” rating in a report on Friday. Three analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, NIKE presently has a consensus rating of “Moderate Buy” and an average target price of $78.14.

Insider Buying and Selling

In other NIKE news, Director Jorgen Vig Knudstorp purchased 16,150 shares of the stock in a transaction dated Friday, November 7th. The stock was bought at an average price of $62.09 per share, for a total transaction of $1,002,753.50. Following the transaction, the director directly owned 21,388 shares in the company, valued at $1,327,980.92. This represents a 308.32% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Treasure Heinle sold 4,300 shares of the business’s stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $71.27, for a total transaction of $306,461.00. Following the sale, the executive vice president directly owned 29,396 shares of the company’s stock, valued at approximately $2,095,052.92. This trade represents a 12.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.80% of the company’s stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Q2 beat on top and bottom line — Nike reported $12.4B in revenue and $0.53 EPS, both ahead of expectations, showing resilience in demand overall. Nike Beats on Earnings But Struggles in China and Faces Tariffs
• Positive Sentiment: North America strength and product wins — North American sales rose ~9% and running category grew ~20%, supporting the turnaround thesis for key categories. Nike’s China conundrum deepens
• Neutral Sentiment: Analyst mix — Some firms reaffirm buys (Guggenheim, Needham/Buys remain) while others cut price targets or mark to market; Berenberg reiterated neutral with a $70 PT. This leaves Street views mixed but not uniformly bearish. MarketScreener Latest Ratings
• Negative Sentiment: Tariff and margin pressure — Gross margin fell ~300 bps (to ~40.6%) and management flagged substantial tariff headwinds (reported ~$1.5B FY impact) and guidance for further margin contraction next quarter. Nike Plunges 11% As Tariffs, China Woes Cloud Outlook
• Negative Sentiment: China slump — Greater China sales plunged (~16–20% reported across outlets), with Chinese DTC digital revenue down sharply, raising concerns that Nike’s China playbook isn’t yet working. Nike is struggling to stay culturally relevant in China
• Negative Sentiment: Guidance and investor reaction — Management guided to low‑single‑digit revenue declines next quarter and warned of margin headwinds; markets focused on that guidance and tariffs, driving heavy selling and large intraday volume. Nike says turnaround plans are ‘in the middle innings’

Institutional Trading of NIKE

Institutional investors have recently bought and sold shares of the business. AIA Group Ltd lifted its stake in shares of NIKE by 68.4% in the 3rd quarter. AIA Group Ltd now owns 81,689 shares of the footwear maker’s stock valued at $5,696,000 after purchasing an additional 33,186 shares during the period. FNY Investment Advisers LLC increased its holdings in NIKE by 326.6% in the third quarter. FNY Investment Advisers LLC now owns 7,893 shares of the footwear maker’s stock valued at $550,000 after purchasing an additional 6,043 shares during the last quarter. Hudson Bay Capital Management LP increased its holdings in NIKE by 109.7% in the third quarter. Hudson Bay Capital Management LP now owns 28,797 shares of the footwear maker’s stock valued at $2,008,000 after purchasing an additional 15,063 shares during the last quarter. Painted Porch Advisors LLC lifted its stake in NIKE by 587.9% in the third quarter. Painted Porch Advisors LLC now owns 1,424 shares of the footwear maker’s stock valued at $99,000 after buying an additional 1,217 shares during the period. Finally, Saranac Partners Ltd acquired a new position in NIKE in the third quarter valued at about $567,000. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE Stock Performance

The stock has a market cap of $86.91 billion, a P/E ratio of 34.59, a PEG ratio of 2.32 and a beta of 1.29. The stock has a fifty day simple moving average of $65.05 and a 200-day simple moving average of $69.40. The company has a quick ratio of 1.45, a current ratio of 2.19 and a debt-to-equity ratio of 0.59.

NIKE (NYSE:NKE) last announced its quarterly earnings results on Thursday, December 18th. The footwear maker reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.16. NIKE had a return on equity of 18.61% and a net margin of 5.43%.The company had revenue of $12.43 billion during the quarter, compared to analysts’ expectations of $12.19 billion. During the same period in the prior year, the business posted $0.78 EPS. NIKE’s revenue was up .6% on a year-over-year basis. Equities analysts expect that NIKE, Inc. will post 2.05 earnings per share for the current fiscal year.

NIKE Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 2.8%. This is a boost from NIKE’s previous quarterly dividend of $0.40. The ex-dividend date is Monday, December 1st. NIKE’s dividend payout ratio (DPR) is 84.10%.

About NIKE

Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).