Nike (NKE) Lifted to Outperform at Oppenheimer

Oppenheimer upgraded shares of Nike (NYSE:NKE) from a market perform rating to an outperform rating in a report issued on Thursday, MarketBeat Ratings reports. The brokerage currently has $90.00 target price on the footwear maker’s stock. Oppenheimer also issued estimates for Nike’s Q2 2019 earnings at $0.45 EPS, Q3 2019 earnings at $0.72 EPS, Q4 2019 earnings at $0.79 EPS, FY2019 earnings at $2.63 EPS, Q1 2020 earnings at $0.81 EPS, Q2 2020 earnings at $0.54 EPS, Q3 2020 earnings at $0.84 EPS, Q4 2020 earnings at $0.94 EPS, FY2020 earnings at $3.14 EPS and FY2021 earnings at $3.70 EPS.

A number of other brokerages also recently issued reports on NKE. Goldman Sachs Group set a $83.00 price target on shares of Nike and gave the stock a neutral rating in a report on Wednesday, September 26th. Guggenheim increased their price target on shares of Nike to $100.00 and gave the stock a buy rating in a report on Thursday, September 20th. HSBC set a $92.00 price target on shares of Nike and gave the stock a buy rating in a report on Thursday, September 6th. Susquehanna Bancshares raised shares of Nike from a neutral rating to a positive rating and increased their price target for the stock from $78.00 to $93.00 in a report on Monday, August 20th. Finally, UBS Group downgraded shares of Nike from a buy rating to a neutral rating and increased their price target for the stock from $76.00 to $78.00 in a report on Thursday, June 21st. Two equities research analysts have rated the stock with a sell rating, seventeen have given a hold rating and twenty-four have issued a buy rating to the company’s stock. The company has a consensus rating of Buy and an average target price of $84.75.

NYSE NKE traded down $1.13 during mid-day trading on Thursday, reaching $74.47. 401,767 shares of the stock were exchanged, compared to its average volume of 9,157,985. Nike has a 1 year low of $51.48 and a 1 year high of $86.04. The company has a market capitalization of $121.46 billion, a PE ratio of 31.34, a price-to-earnings-growth ratio of 2.54 and a beta of 0.65. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.53 and a current ratio of 2.31.

Nike (NYSE:NKE) last announced its quarterly earnings results on Tuesday, September 25th. The footwear maker reported $0.67 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.63 by $0.04. Nike had a net margin of 5.57% and a return on equity of 40.69%. The firm had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.92 billion. During the same period in the prior year, the firm posted $0.57 earnings per share. The firm’s quarterly revenue was up 9.7% compared to the same quarter last year. On average, equities analysts expect that Nike will post 2.63 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Monday, October 1st. Shareholders of record on Tuesday, September 4th were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.07%. The ex-dividend date of this dividend was Friday, August 31st. Nike’s payout ratio is 33.06%.

Nike announced that its Board of Directors has approved a share buyback plan on Thursday, June 28th that allows the company to repurchase $15.00 billion in shares. This repurchase authorization allows the footwear maker to repurchase up to 12.9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

In other news, CFO Andrew Campion sold 2,907 shares of the stock in a transaction dated Tuesday, July 24th. The shares were sold at an average price of $76.85, for a total value of $223,402.95. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Monique S. Matheson sold 17,000 shares of the stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $85.00, for a total transaction of $1,445,000.00. Following the completion of the sale, the executive vice president now owns 104,737 shares of the company’s stock, valued at $8,902,645. The disclosure for this sale can be found here. Insiders sold 68,648 shares of company stock valued at $5,652,227 over the last quarter. Company insiders own 3.90% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of NKE. Jennison Associates LLC raised its position in shares of Nike by 26.5% in the second quarter. Jennison Associates LLC now owns 14,740,623 shares of the footwear maker’s stock valued at $1,174,533,000 after buying an additional 3,087,189 shares during the last quarter. Bank of New York Mellon Corp increased its position in Nike by 4.8% during the second quarter. Bank of New York Mellon Corp now owns 27,940,846 shares of the footwear maker’s stock worth $2,226,327,000 after purchasing an additional 1,273,548 shares during the last quarter. Millennium Management LLC increased its position in Nike by 2,820.1% during the second quarter. Millennium Management LLC now owns 1,169,503 shares of the footwear maker’s stock worth $93,186,000 after purchasing an additional 1,129,453 shares during the last quarter. LFA Lugano Financial Advisors SA acquired a new stake in Nike during the second quarter worth about $1,039,000. Finally, Bessemer Group Inc. increased its position in Nike by 32.5% during the second quarter. Bessemer Group Inc. now owns 3,830,654 shares of the footwear maker’s stock worth $305,227,000 after purchasing an additional 940,411 shares during the last quarter. Institutional investors and hedge funds own 64.03% of the company’s stock.

Nike Company Profile

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.

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Analyst Recommendations for Nike (NYSE:NKE)

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