Nike’s (NYSE:NKE) “Buy” Rating Reaffirmed at Guggenheim

Guggenheim reissued their buy rating on shares of Nike (NYSE:NKE) in a research note released on Friday, December 21st. Guggenheim currently has a $90.00 price target on the footwear maker’s stock.

“We believe today’s result demonstrates the global strength of the Nike brand (~20% combined Int’l growth in cc), as well as NKE’s diligent work to improve performance in North America. Nike brand revenue increased 10% (+14% in cc), while total Nike, Inc.”,” Guggenheim’s analyst wrote.

Several other analysts have also commented on NKE. Stifel Nicolaus reaffirmed a buy rating and issued a $90.00 price objective on shares of Nike in a research report on Thursday, August 23rd. Macquarie set a $87.00 price objective on shares of Nike and gave the stock a buy rating in a research report on Tuesday, August 28th. Robert W. Baird reaffirmed a buy rating and issued a $90.00 price objective on shares of Nike in a research report on Monday, September 3rd. Wells Fargo & Co set a $82.00 target price on shares of Nike and gave the stock a neutral rating in a research note on Tuesday, September 4th. Finally, HSBC set a $92.00 target price on shares of Nike and gave the stock a buy rating in a research note on Thursday, September 6th. Three equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and twenty-three have given a buy rating to the stock. The stock presently has a consensus rating of Buy and a consensus price target of $83.14.

Shares of NKE traded down $0.20 during trading hours on Friday, reaching $77.68. 5,495,803 shares of the stock traded hands, compared to its average volume of 7,946,042. The firm has a market capitalization of $120.84 billion, a P/E ratio of 32.10, a PEG ratio of 2.36 and a beta of 0.69. The company has a debt-to-equity ratio of 0.40, a current ratio of 2.14 and a quick ratio of 1.40. Nike has a 52 week low of $62.09 and a 52 week high of $86.04.

Nike (NYSE:NKE) last announced its quarterly earnings data on Thursday, December 20th. The footwear maker reported $0.52 EPS for the quarter, topping the consensus estimate of $0.46 by $0.06. The business had revenue of $9.37 billion for the quarter, compared to analyst estimates of $9.17 billion. Nike had a net margin of 5.66% and a return on equity of 44.85%. The company’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.46 earnings per share. On average, equities research analysts expect that Nike will post 2.62 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 2nd. Shareholders of record on Monday, December 3rd were given a dividend of $0.22 per share. The ex-dividend date was Friday, November 30th. This is a positive change from Nike’s previous quarterly dividend of $0.20. This represents a $0.88 annualized dividend and a yield of 1.13%. Nike’s payout ratio is presently 36.36%.

In other Nike news, EVP John F. Slusher sold 200,000 shares of Nike stock in a transaction that occurred on Wednesday, January 2nd. The shares were sold at an average price of $74.05, for a total transaction of $14,810,000.00. Following the completion of the sale, the executive vice president now directly owns 284,805 shares in the company, valued at $21,089,810.25. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Chairman Mark G. Parker sold 150,000 shares of Nike stock in a transaction that occurred on Wednesday, January 2nd. The shares were sold at an average price of $73.68, for a total transaction of $11,052,000.00. Following the sale, the chairman now owns 1,687,863 shares of the company’s stock, valued at $124,361,745.84. The disclosure for this sale can be found here. Insiders own 3.90% of the company’s stock.

A number of institutional investors have recently made changes to their positions in NKE. Riverhead Capital Management LLC lifted its holdings in shares of Nike by 7.6% in the 2nd quarter. Riverhead Capital Management LLC now owns 21,710 shares of the footwear maker’s stock worth $1,730,000 after acquiring an additional 1,525 shares during the last quarter. Commonwealth Bank of Australia lifted its holdings in shares of Nike by 1.9% in the 3rd quarter. Commonwealth Bank of Australia now owns 104,676 shares of the footwear maker’s stock worth $8,861,000 after acquiring an additional 1,942 shares during the last quarter. MML Investors Services LLC lifted its holdings in shares of Nike by 148.9% in the 3rd quarter. MML Investors Services LLC now owns 109,564 shares of the footwear maker’s stock worth $9,282,000 after acquiring an additional 65,550 shares during the last quarter. Sustainable Insight Capital Management LLC lifted its holdings in shares of Nike by 30.3% in the 3rd quarter. Sustainable Insight Capital Management LLC now owns 4,564 shares of the footwear maker’s stock worth $387,000 after acquiring an additional 1,061 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund lifted its holdings in shares of Nike by 49.3% in the 2nd quarter. Oregon Public Employees Retirement Fund now owns 531,637 shares of the footwear maker’s stock worth $42,361,000 after acquiring an additional 175,587 shares during the last quarter. Institutional investors and hedge funds own 63.98% 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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