NIKE, Inc. (NYSE: NKE) has seen a mix of institutional buying and selling as investors react to earnings surprises, shifting price targets, and insider transactions. According to a recent Securities & Exchange Commission (SEC) filing, Pecaut & CO. reduced its stake in the footwear giant by 9.6% in the fourth quarter, selling 4,215 shares to bring its total holdings to 39,762 shares, valued at $3.01 million. Despite the reduction, NIKE remains the 23rd largest position in Pecaut & CO.’s investment portfolio.
Institutional Investors Adjust NIKE Holdings
While some firms trimmed their stakes, others significantly increased their exposure, demonstrating confidence in the brand’s long-term potential.
- Pacer Advisors Inc. increased its NIKE holdings by 6,029.6%, acquiring an additional 6.7 million shares to bring its total stake to 6.82 million shares, valued at $516.17 million.
- Loomis Sayles & Co. L.P. made a massive move, increasing its stake by over 1.2 million percent to 6.51 million shares, now worth $575.34 million.
- Bank of New York Mellon Corp. raised its holdings by 18.1%, adding 3.12 million shares to reach a total of 20.37 million shares, valued at $1.54 billion.
- Assenagon Asset Management S.A. grew its position by 358.6%, purchasing 2.36 million additional shares, totaling 3.02 million shares worth $228.17 million.
- Raymond James Financial Inc. took a new position in NIKE stock, investing $156.44 million.
Currently, 64.25% of NIKE’s stock is owned by institutional investors.
NIKE’s Stock Performance and Financials
NIKE shares opened at $71.61 on Friday, reflecting recent volatility. The company’s key financial metrics include:
- Market Cap: $105.92 billion
- P/E Ratio: 22.10
- PEG Ratio: 2.52
- Beta: 1.02 (moderate volatility)
- 52-Week Range: $67.66 – $101.92
The company has a strong balance sheet, with a quick ratio of 1.51, a current ratio of 2.22, and a debt-to-equity ratio of 0.57, indicating a healthy ability to meet short-term obligations.
Earnings Beat and Revenue Decline
NIKE’s latest earnings report, released on March 20th, surpassed expectations:
- Earnings per share (EPS): $0.54 (vs. $0.28 expected)
- Revenue: $11.27 billion (vs. $11.02 billion expected)
- Return on equity: 36.99%
- Net margin: 9.98%
Despite the earnings beat, NIKE’s revenue declined 9.1% year-over-year, raising concerns about potential sales slowdowns.
Dividend and Shareholder Returns
NIKE continues to reward shareholders with a quarterly dividend of $0.40 per share, equating to an annualized dividend of $1.60 with a yield of 2.23%. The ex-dividend date was March 3rd, and payments will be distributed on April 1st. NIKE’s dividend payout ratio (DPR) stands at 49.38%, indicating sustainable distributions.
Insider Transactions: Selling and Buying Activity
Recent insider trades reflect a divergence in sentiment among company executives:
- Chairman Mark G. Parker sold 169,732 shares at $72.83 per share, totaling $12.36 million, reducing his ownership by 15.92%.
- Director John W. Rogers, Jr. purchased 2,500 shares at $76.65 per share, investing $191,625, increasing his position by 7.84%.
Analyst Ratings and Price Targets
Wall Street analysts remain cautiously optimistic, with a mix of buy and hold recommendations:
- Telsey Advisory Group: Maintains a “Market Perform” rating with an $80 target.
- UBS Group: Rates NIKE as “Neutral” with a $73 price target.
- Truist Financial: Downgraded its price target from $97 to $90 but maintains a “Buy” rating.
- Piper Sandler: Upgraded NIKE from “Neutral” to “Overweight”, raising its target to $90.
- Jefferies Financial Group: Raised NIKE from “Hold” to “Buy”, increasing the target from $75 to $115.
Overall, NIKE holds an average rating of “Moderate Buy” with a consensus price target of $89.54, reflecting potential upside from current levels.
Outlook: NIKE’s Comeback Potential
With a strong earnings beat, institutional support, and continued dividend growth, NIKE remains a potential comeback stock for 2025. While near-term challenges, including revenue declines and insider selling, pose risks, long-term investors may find value in NIKE’s global brand strength and financial stability.
