NIKE (NYSE:NKE) Reaches New 1-Year Low Following Analyst Downgrade

NIKE, Inc. (NYSE:NKE) shares hit a new 52-week low during trading on Monday after Weiss Ratings downgraded the stock from a hold (c-) rating to a sell (d+) rating. The company traded as low as $42.09 and last traded at $42.5260, with a volume of 2109125 shares trading hands. The stock had previously closed at $42.62.

NKE has been the subject of several other research reports. Berenberg Bank reaffirmed a “neutral” rating and set a $70.00 target price on shares of NIKE in a research note on Friday, December 19th. DA Davidson cut NIKE from a “buy” rating to a “neutral” rating and decreased their target price for the company from $72.00 to $46.00 in a research note on Thursday, April 2nd. Robert W. Baird decreased their target price on NIKE from $85.00 to $70.00 and set an “outperform” rating for the company in a research note on Wednesday, April 1st. Bank of America reaffirmed a “neutral” rating and set a $55.00 target price (down from $73.00) on shares of NIKE in a research note on Wednesday, April 1st. Finally, China Renaissance decreased their target price on NIKE from $74.60 to $50.30 and set a “hold” rating for the company in a research note on Thursday, April 2nd. Seventeen equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, NIKE currently has an average rating of “Hold” and an average target price of $62.34.

Insider Activity

In other news, Director Robert Holmes Swan bought 11,781 shares of the firm’s stock in a transaction that occurred on Tuesday, April 7th. The stock was acquired at an average price of $42.44 per share, with a total value of $499,985.64. Following the completion of the purchase, the director directly owned 55,074 shares of the company’s stock, valued at $2,337,340.56. This represents a 27.21% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John W. Rogers, Jr. purchased 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 9th. The stock was bought at an average price of $43.34 per share, with a total value of $173,360.00. Following the transaction, the director directly owned 41,022 shares in the company, valued at $1,777,893.48. This trade represents a 10.80% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.80% of the company’s stock.

Key NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Market commentary says NKE is deeply oversold and could have upside if the turnaround shows signs of working — this view supports bargain‑hunting interest in the stock. With Nike Shares Near a 12-Year Low, Is Now the Time to Be Brave?
• Neutral Sentiment: JPMorgan reaffirmed a neutral rating, signaling no conviction for a near‑term rally but also no active sell recommendation. NIKE, Inc. – JPMorgan Reaffirms Neutral Rating
• Neutral Sentiment: Piper Sandler reiterated a neutral rating, contributing to a broad analyst stance of “wait and see” rather than bullish conviction. NIKE’s (NKE) Neutral Rating Reiterated at Piper Sandler
• Neutral Sentiment: Investor roundups and insider‑signal pieces mention Nike among stocks to watch, but they don’t provide an immediate catalyst — useful context for longer‑term contrarian investors. 2 Stocks to Buy and 2 to Sell, According to Insiders
• Negative Sentiment: HSBC downgraded NKE from Buy to Hold and slashed its price target from $90 to $48 — a major analyst move that is cited as the primary driver of selling pressure and investor concern about lack of near‑term catalysts. HSBC Downgrades Nike to Hold as Turnaround Becomes a Show‑Me Story With No Near‑Term Catalysts
• Negative Sentiment: A law‑firm notice is circulating encouraging shareholders to explore claims that insiders breached fiduciary duties — this raises the risk of litigation or reputational/legal distractions that can sap investor confidence. Did NIKE, Inc. Insiders Breach their Fiduciary Duties to Shareholders?
• Negative Sentiment: Recent quarterly results showed an EPS beat but essentially flat revenue year‑over‑year and slim margins, underscoring why analysts are asking for clearer evidence the turnaround is sustainable; lack of near‑term operational catalysts is pressuring the stock.
• Negative Sentiment: Follow‑on coverage (e.g., Fool and video commentary) amplifies the downgrade narrative and historic‑low price framing, increasing short‑term selling pressure. Nike Got Downgraded: Can the Iconic Brand Ever Recover?

Institutional Trading of NIKE

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in NIKE by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 116,993,541 shares of the footwear maker’s stock worth $7,453,658,000 after buying an additional 1,702,342 shares during the period. State Street Corp raised its holdings in NIKE by 2.2% during the 4th quarter. State Street Corp now owns 59,315,606 shares of the footwear maker’s stock worth $3,802,807,000 after buying an additional 1,275,494 shares during the period. Capital World Investors raised its holdings in NIKE by 16.2% during the 4th quarter. Capital World Investors now owns 49,069,951 shares of the footwear maker’s stock worth $3,126,246,000 after buying an additional 6,830,938 shares during the period. J. Stern & Co. LLP raised its holdings in NIKE by 49,010.4% during the 4th quarter. J. Stern & Co. LLP now owns 48,054,542 shares of the footwear maker’s stock worth $3,061,555,000 after buying an additional 47,956,692 shares during the period. Finally, Geode Capital Management LLC raised its holdings in NIKE by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 26,442,879 shares of the footwear maker’s stock worth $1,677,251,000 after buying an additional 233,925 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE Trading Up 0.5%

The company has a fifty day simple moving average of $56.07 and a 200-day simple moving average of $61.89. The company has a current ratio of 2.14, a quick ratio of 1.45 and a debt-to-equity ratio of 0.50. The stock has a market cap of $63.46 billion, a price-to-earnings ratio of 28.38, a P/E/G ratio of 2.25 and a beta of 1.31.

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

NIKE Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Monday, March 2nd were paid a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend was Monday, March 2nd. NIKE’s payout ratio 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).