NIKE (NYSE:NKE) Stock Price Down 3.1% on Analyst Downgrade

NIKE, Inc. (NYSE:NKE)’s share price was down 3.1% on Tuesday after Weiss Ratings downgraded the stock from a hold (c-) rating to a sell (d+) rating. The company traded as low as $42.36 and last traded at $42.6790. Approximately 36,277,028 shares changed hands during mid-day trading, an increase of 94% from the average daily volume of 18,737,002 shares. The stock had previously closed at $44.03.

Other analysts also recently issued research reports about the stock. The Goldman Sachs Group reiterated a “neutral” rating and issued a $52.00 price objective (down from $76.00) on shares of NIKE in a report on Wednesday, April 1st. Robert W. Baird cut their price objective on shares of NIKE from $85.00 to $70.00 and set an “outperform” rating for the company in a report on Wednesday, April 1st. Truist Financial cut their price objective on shares of NIKE from $69.00 to $57.00 and set a “buy” rating for the company in a report on Wednesday, April 1st. Barclays cut their price objective on shares of NIKE from $73.00 to $67.00 and set an “overweight” rating for the company in a report on Wednesday, April 1st. Finally, Berenberg Bank reiterated a “neutral” rating and issued a $70.00 price objective on shares of NIKE in a report on Friday, December 19th. Nineteen investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $63.25.

NIKE News Roundup

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Dividend yield has risen to nearly 4% as the share price has fallen, which could attract income-seeking investors and provide a valuation floor for long-term buyers. Read More.
• Positive Sentiment: Management announced sweeping cost cuts, workforce resizing and a supply‑chain reset; analysts expect benefits to build in FY27, which supports a case for improving margins over time. Read More.
• Positive Sentiment: Some commentators view the deep multi‑year sell‑off as creating a generational buying opportunity, pointing to pockets of underlying strength (e.g., North America) and the stock’s much lower valuation versus history. Read More.
• Neutral Sentiment: Broader industry weakness highlighted by the distressed sale of Allbirds underscores sector headwinds, providing context but not unique to Nike’s specific operational issues. Read More.
• Negative Sentiment: Analysts and commentary flag prolonged weak performance: shares are down sharply YTD and ~65% over five years, raising doubts about the pace of any rebound and investor appetite. Read More.
• Negative Sentiment: Multiple articles warn the turnaround is taking longer than expected, citing execution risk under the current CEO and renewed share-price plunges as investors penalize delayed progress. Read More.
• Negative Sentiment: CICC downgraded NKE from outperform to market perform and lowered its price target, a near‑term headwind that can amplify selling pressure from institutional holders. Read More.
• Negative Sentiment: Johnson Fistel announced an investigation into potential investor claims against Nike’s executives, adding legal/litigation risk that can weigh on sentiment until resolved. Read More.

Institutional Trading of NIKE

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cornerstone Financial Management LLC acquired a new stake in shares of NIKE during the 4th quarter worth approximately $26,000. Sankala Group LLC acquired a new stake in shares of NIKE during the 4th quarter worth approximately $26,000. J.Safra Asset Management Corp acquired a new stake in shares of NIKE during the 4th quarter worth approximately $29,000. Kemnay Advisory Services Inc. acquired a new stake in shares of NIKE during the 4th quarter worth approximately $30,000. Finally, Litman Gregory Wealth Management LLC acquired a new stake in shares of NIKE during the 4th quarter worth approximately $32,000. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE Price Performance

The stock’s fifty day moving average price is $57.60 and its 200-day moving average price is $62.66. The firm has a market cap of $63.18 billion, a price-to-earnings ratio of 28.26, a P/E/G ratio of 2.34 and a beta of 1.31. The company has a current ratio of 2.14, a quick ratio of 1.40 and a debt-to-equity ratio of 0.50.

NIKE (NYSE:NKE) last posted its earnings results on Tuesday, March 31st. The footwear maker reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.06. NIKE had a net margin of 4.84% and a return on equity of 16.41%. The firm had revenue of $11.28 billion during the quarter, compared to the consensus estimate of $11.23 billion. During the same quarter last year, the firm earned $0.54 EPS. The firm’s revenue for the quarter was up .1% on a year-over-year basis. As a group, equities research analysts forecast that NIKE, Inc. will post 2.05 earnings per share for the current fiscal year.

NIKE Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Monday, March 2nd were issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 3.8%. The ex-dividend date was Monday, March 2nd. NIKE’s dividend payout ratio (DPR) is 108.61%.

NIKE Company Profile

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).