Seaport Res Ptn Cuts NIKE FY2025 Earnings Forecast

NIKE, Inc. (NYSE:NKE) has recently seen a downgrade in earnings per share (EPS) estimates for the fiscal year 2025, as indicated by analysts at Seaport Res Ptn. In a research note sent to investors on March 21st, analyst M. Kummetz revised the forecast from an earlier estimate of $2.12 per share down to $2.08 per share. This adjustment reflects the ongoing developments in NIKE's performance and market conditions.

The consensus estimate from various analysts for NIKE's full-year earnings now stands at $2.05 per share. On March 20th, NIKE announced its quarterly earnings results, revealing earnings of $0.54 per share, significantly exceeding analysts' expectations of $0.28 by $0.26. The revenue for the quarter reached $11.27 billion, surpassing the anticipated $11.02 billion. Despite this positive performance, NIKE's revenue decreased by 9.1% compared to the same quarter last year, when the company recorded earnings of $0.98 per share.

Several other analysts have recently provided insights on NIKE's stock. UBS Group has reduced its price target for NIKE shares from $73.00 to $66.00 while maintaining a "neutral" rating. Conversely, DA Davidson upgraded its rating to "strong-buy" on December 23rd. On January 10th, Piper Sandler increased its rating from "neutral" to "overweight" and raised its target price from $72.00 to $90.00. Guggenheim reasserted a "buy" rating and set a target price of $110.00 on shares of NIKE. Truist Financial also lowered their target price from $90.00 to $82.00 while maintaining a "buy" rating. Overall, 15 analysts have given NIKE a hold rating, while 16 recommend buying the stock, and 2 have indicated a strong buy. MarketBeat currently reports an average rating of "Moderate Buy" and an average target price of $87.38 for the company.

NIKE Stock Overview

As of Monday, NIKE's stock opened at $68.02, and its market capitalization currently stands at approximately $100.60 billion. The company has a price-to-earnings (PE) ratio of 20.99 and a PEG ratio of 2.52. The stock's twelve-month low is $65.17, while its high is $98.04. The 50-day and 200-day moving averages are $74.70 and $77.40, respectively. NIKE also demonstrates solid liquidity, with a current ratio of 2.22 and a quick ratio of 1.51, alongside a manageable debt-to-equity ratio of 0.57.

Institutional Investor Actions

Recently, several institutional investors and hedge funds have adjusted their positions in NIKE. JNBA Financial Advisors increased its stake by 1.3% in the fourth quarter, now holding 10,045 shares valued at $760,000 after buying 131 additional shares. Frisch Financial Group Inc. raised its holdings by 4.7% in the third quarter, totaling 3,036 shares valued at $269,000 post-purchase. Nations Financial Group Inc. IA ADV also increased its stake slightly by 0.7% in the fourth quarter, resulting in a total ownership of 20,446 shares valued at $1,547,000. Meanwhile, Elgethun Capital Management boosted its holdings by 13.7% in the fourth quarter, now owning 1,236 shares valued at $94,000. Lastly, GAMMA Investing LLC grew its stake by 1.0% during the fourth quarter, holding 15,014 shares valued at $1,136,000. In total, institutional investors own 64.25% of NIKE's stock.

Insider Trading Activity

In addition to institutional trading, insider transactions have also occurred. Mark G. Parker, the Chairman, sold 169,732 shares of the company's stock on February 14th for an average price of $72.83, totaling approximately $12.36 million. Post-sale, he retains 896,632 shares valued at around $65.30 million, representing a reduction of about 15.92% in his position. In contrast, Director John W. Rogers, Jr. purchased 2,500 shares on December 27th at an average price of $76.65, amounting to nearly $191,625. His stake subsequently increased to 34,403 shares valued at $2.64 million after the purchase. Insiders currently own about 1.10% of the company's stock.

Dividend Announcement

NIKE has also declared a quarterly dividend of $0.40 per share, to be paid on April 1st. This means investors who are on record by March 3rd will receive their dividends. The annualized dividend totals $1.60, resulting in a yield of 2.35%. The company’s current payout ratio is 53.16%, reflecting its commitment to returning value to shareholders.

About NIKE

NIKE, Inc., alongside its subsidiaries, focuses on designing, developing, marketing, and selling athletic footwear, apparel, equipment, accessories, and services worldwide. The company is known for its extensive range of athletic and casual footwear, apparel, and accessories, including products under the Jumpman trademark, as well as the Converse brand and related lines.

NIKE, Earnings, Stocks