NIKE (NYSE:NKE) Sets New 52-Week Low – Should You Sell?

NIKE, Inc. (NYSE:NKE)’s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $70.62 and last traded at $70.66, with a volume of 4378061 shares changing hands. The stock had previously closed at $72.08.

Wall Street Analyst Weigh In

NKE has been the subject of several recent research reports. Morgan Stanley lowered their price objective on NIKE from $80.00 to $74.00 and set an “equal weight” rating for the company in a research note on Friday, December 20th. Barclays lowered their price objective on NIKE from $79.00 to $70.00 and set an “equal weight” rating for the company in a research note on Friday, December 20th. Royal Bank of Canada lowered their price objective on NIKE from $82.00 to $80.00 and set a “sector perform” rating for the company in a research note on Thursday, November 7th. TD Cowen reduced their target price on NIKE from $78.00 to $73.00 and set a “hold” rating on the stock in a report on Monday, November 18th. Finally, Robert W. Baird reduced their target price on NIKE from $110.00 to $105.00 and set an “outperform” rating on the stock in a report on Monday, December 23rd. Fourteen research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, NIKE currently has an average rating of “Moderate Buy” and a consensus price target of $89.96.

NIKE Price Performance

The firm has a market capitalization of $104.90 billion, a PE ratio of 20.32, a price-to-earnings-growth ratio of 1.89 and a beta of 1.02. The business has a 50-day moving average of $76.19 and a 200 day moving average of $78.09. The company has a current ratio of 2.36, a quick ratio of 1.58 and a debt-to-equity ratio of 0.57.

NIKE (NYSE:NKE) last released its quarterly earnings results on Thursday, December 19th. The footwear maker reported $0.78 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.15. NIKE had a return on equity of 39.84% and a net margin of 10.60%. The business had revenue of $12.35 billion during the quarter, compared to analyst estimates of $12.11 billion. During the same period in the prior year, the firm posted $1.03 EPS. NIKE’s quarterly revenue was down 7.7% compared to the same quarter last year. As a group, research analysts anticipate that NIKE, Inc. will post 2.72 EPS for the current fiscal year.

NIKE Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 2nd. Stockholders of record on Monday, December 2nd were given a dividend of $0.40 per share. The ex-dividend date was Monday, December 2nd. This is a positive change from NIKE’s previous quarterly dividend of $0.37. This represents a $1.60 annualized dividend and a dividend yield of 2.26%. NIKE’s dividend payout ratio (DPR) is currently 49.38%.

Insider Activity

In related news, Director John W. Rogers, Jr. bought 2,500 shares of the business’s stock in a transaction on Friday, December 27th. The stock was acquired at an average price of $76.65 per share, for a total transaction of $191,625.00. Following the purchase, the director now directly owns 34,403 shares in the company, valued at $2,636,989.95. This trade represents a 7.84 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.10% of the company’s stock.

Institutional Trading of NIKE

A number of large investors have recently modified their holdings of the business. Prosperity Consulting Group LLC increased its stake in NIKE by 12.9% in the 2nd quarter. Prosperity Consulting Group LLC now owns 3,309 shares of the footwear maker’s stock worth $249,000 after purchasing an additional 379 shares during the period. J.W. Cole Advisors Inc. increased its stake in NIKE by 5.1% in the 2nd quarter. J.W. Cole Advisors Inc. now owns 11,171 shares of the footwear maker’s stock worth $842,000 after purchasing an additional 543 shares during the period. Quilter Plc increased its stake in NIKE by 10.0% in the 2nd quarter. Quilter Plc now owns 389,224 shares of the footwear maker’s stock worth $29,336,000 after purchasing an additional 35,277 shares during the period. Fairfield Financial Advisors LTD purchased a new position in NIKE in the 2nd quarter worth approximately $102,000. Finally, Marble Harbor Investment Counsel LLC increased its stake in NIKE by 2.0% in the 2nd quarter. Marble Harbor Investment Counsel LLC now owns 8,835 shares of the footwear maker’s stock worth $666,000 after purchasing an additional 175 shares during the period. Institutional investors own 64.25% of the company’s stock.

About NIKE

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.