Equities Analysts Set Expectations for Nike Inc’s Q3 2019 Earnings (NKE)

Nike Inc (NYSE:NKE) – Investment analysts at Piper Jaffray Companies increased their Q3 2019 EPS estimates for shares of Nike in a research report issued on Tuesday, September 25th, according to Zacks Investment Research. Piper Jaffray Companies analyst E. Murphy now anticipates that the footwear maker will earn $0.74 per share for the quarter, up from their prior estimate of $0.73. Piper Jaffray Companies currently has a “Buy” rating and a $93.00 price target on the stock. Piper Jaffray Companies also issued estimates for Nike’s Q4 2019 earnings at $0.82 EPS, Q1 2020 earnings at $0.82 EPS, Q3 2020 earnings at $0.88 EPS and Q4 2020 earnings at $0.97 EPS.

A number of other research analysts also recently commented on NKE. Buckingham Research downgraded Nike from a “buy” rating to a “neutral” rating and increased their target price for the stock from $75.00 to $80.00 in a report on Friday, June 22nd. They noted that the move was a valuation call. Goldman Sachs Group initiated coverage on Nike in a report on Monday, June 25th. They set a “neutral” rating and a $78.00 target price on the stock. Pivotal Research reaffirmed a “hold” rating and set a $73.00 target price (up previously from $68.00) on shares of Nike in a report on Tuesday, June 26th. Telsey Advisory Group increased their target price on Nike from $77.00 to $82.00 and gave the stock an “outperform” rating in a report on Tuesday, June 26th. Finally, Wells Fargo & Co reaffirmed a “neutral” rating and set a $82.00 target price on shares of Nike in a report on Friday, June 29th. Two investment 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 stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $84.75.

NYSE:NKE opened at $74.21 on Thursday. 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 has a 52 week low of $52.67 and a 52 week high of $86.04. The company has a market cap of $121.46 billion, a price-to-earnings ratio of 30.67, a PEG ratio of 2.54 and a beta of 0.65.

Nike (NYSE:NKE) last released its earnings results on Tuesday, September 25th. The footwear maker reported $0.67 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.04. Nike had a return on equity of 40.69% and a net margin of 5.57%. The company had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.92 billion. During the same quarter last year, the business posted $0.57 EPS. Nike’s quarterly revenue was up 9.7% compared to the same quarter last year.

Nike declared that its Board of Directors has initiated a stock repurchase plan on Thursday, June 28th that permits the company to buyback $15.00 billion in outstanding shares. This buyback authorization permits the footwear maker to purchase up to 12.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which was paid on Monday, October 1st. Shareholders of record on Tuesday, September 4th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.08%. The ex-dividend date of this dividend was Friday, August 31st. Nike’s payout ratio is currently 33.06%.

In other Nike news, Director Johnathan A. Rodgers sold 16,000 shares of Nike stock in a transaction on Wednesday, September 19th. The stock was sold at an average price of $85.05, for a total transaction of $1,360,800.00. Following the sale, the director now owns 26,963 shares of the company’s stock, valued at approximately $2,293,203.15. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Andrew Campion sold 2,907 shares of Nike stock in a transaction on Tuesday, July 24th. The shares were sold at an average price of $76.85, for a total value of $223,402.95. The disclosure for this sale can be found here. Insiders have sold a total of 68,648 shares of company stock worth $5,652,227 in the last ninety days. 3.90% of the stock is owned by company insiders.

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

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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