NIKE, Inc. (NKE) Gets Mixed Reviews From Analysts

Analysts at Oppenheimer upped their rating on shares of NIKE, Inc. (NYSE:NKE) from Perform to Outperform in their opinion released on October 18. HSBC Securities analysts have downgraded their rating of NKE stock from Buy to Hold in a separate flash note to investors on October 03. Analysts at Pivotal Research Group are sticking to their Hold recommendation. However, on September 21, they lifted target price for these shares to $85 from $78. Analysts at Pivotal Research Group, made their first call for the stock with a Hold rating, according to a research note that dated back to September 21.

By watching the trading activity of corporate insiders, it will become easier to get a sense of NIKE, Inc. (NYSE:NKE)’s prospects. The earliest insider trade took place on 09/19/2018. Rodgers Johnathan A parted with a total of 16 thousand shares of company at average share price of $85.05. The total for the sales was set at $1.36 million. After this transaction, the Director account balance stood at 12.76 thousand shares. The stock lost -11.18 percent since that insider sale. On 09/18/2018, Matheson Monique S., EVP: HR, sold 17 thousand shares at a price per share of $85. This removed 1.45 million shares from the insider’s fortune and the stock saw a -11.13 percent retreat in value since the news became public. This transaction left 99.02 thousand shares in the EVP: HR account. On 09/11/2018, EVP: HR Matheson Monique S. performed a sale transaction worth $1.41 million. This sale at $83.15 each has eliminated 17 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -9.15 percent decrease since the transaction was reported. The insider now is left with 99.02 thousand shares remaining in the account. Matheson Monique S., who performs the EVP: HR job, sold 10 thousand shares for $760.7 thousand. The disposal occurred on 07/30/2018 was priced at $76.07 per share. The share price plunged -0.7 percent since the reporting date. Matheson Monique S. now left with a stake of 88.06 thousand NKE stock worth $6.65 million after the insider selling.

NIKE, Inc. (NKE) is expected to jump by 15.77 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $103-month high price target. This represents a whopping 36.35 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $90, which represents a return potential of 19.14 percent when compared to the closing price of the stock of $75.54 on Thursday, December 06. The lowest price target for the stock is $50 — slightly more than -33.81 percent from NKE’s current share price.

The shares are currently floating around the first support level of $74.23. Below this, the next support is placed in the zone of $72.92. Till the time, the NKE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.54 on daily chart, which may remain a cause for concern. If the price breaks below $72.92 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $76.21 mark may result into a pull-back move towards $76.87 level.

NKE shares dropped -0.25 points or -0.33 percent on Thursday to $75.54 with a heavy trade volume of 9.144 million shares. After opening the session at $74.37, the shares went as high as $75.565 and as low as $73.59, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $119 billion and now has 1.57 billion shares outstanding. NIKE, Inc. (NKE) stock has lost -2.57 percent of market value in 21 trading days.

NKE stock has a trailing 3-year beta of 0.76, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.51 a share in the trailing twelve months. The stock’s value has surged 20.77 percent year to date (YTD) against a rise of 25.02 percent in 12 month’s time. The company’s shares still trade -12.2 percent away from its 1-year high of $86.04 and 26.64 percent up from 52-week low of $59.65. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of NIKE, Inc. (NKE) are trading at a P/E ratio of 28.73 times earnings reported for the past 12 months. The industry NKE operates in has an average P/E of 22.81. Its P/E ratio went as low as 21.15X and as high as 30.04 over the 5-year span. Further, it is sporting a 3.18 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.22. 44 percent is the gross profit margin for NIKE, Inc. and operating margin sits at 12.5 percent. Along with this, the net profit margin is 5.6 percent.

NKE will be showing off its Q2 earnings on December 20. Analysts are forecasting revenue to climb 7.1 percent to $9.16B in the next fiscal quarter, while earnings are seen soaring by nearly 0 percent to $0.46 per share. History has shown that shares in NIKE, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.67 per share, better than the $0.63, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.95B, better than the $9.94B analysts expected. Earnings are estimated to increase by -4.6 percent this year, 18.33 percent next year and continue to increase by 14.06 percent annually for the next 5 years.