Investors Purchase High Volume of NIKE Call Options (NYSE:NKE)

NIKE, Inc. (NYSE:NKE) was the target of unusually large options trading on Thursday. Stock investors acquired 121,790 call options on the company. This represents an increase of approximately 20% compared to the typical daily volume of 101,440 call options.

NIKE Stock Performance

Shares of NKE stock opened at $74.59 on Friday. The company has a market cap of $110.16 billion, a price-to-earnings ratio of 38.25, a price-to-earnings-growth ratio of 2.79 and a beta of 1.29. NIKE has a 52 week low of $52.28 and a 52 week high of $84.76. The company has a quick ratio of 1.50, a current ratio of 2.19 and a debt-to-equity ratio of 0.59. The firm has a 50 day moving average of $74.71 and a 200-day moving average of $67.32.

NIKE (NYSE:NKE) last issued its earnings results on Tuesday, September 30th. The footwear maker reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.22. The business had revenue of $11.72 billion for the quarter, compared to analyst estimates of $10.96 billion. NIKE had a net margin of 6.23% and a return on equity of 21.16%. NIKE’s revenue was up 1.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.70 earnings per share. On average, equities analysts forecast that NIKE will post 2.05 earnings per share for the current year.

NIKE Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, September 2nd. NIKE’s payout ratio is presently 74.07%.

Insiders Place Their Bets

In other NIKE news, Chairman Mark G. Parker sold 86,078 shares of the company’s stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $75.93, for a total value of $6,535,902.54. Following the completion of the transaction, the chairman owned 744,988 shares of the company’s stock, valued at $56,566,938.84. This represents a 10.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in NKE. Mitchell Mcleod Pugh & Williams Inc. raised its position in shares of NIKE by 1.0% during the second quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 14,176 shares of the footwear maker’s stock worth $1,007,000 after purchasing an additional 134 shares during the period. Main Street Financial Solutions LLC raised its holdings in NIKE by 4.2% during the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock worth $244,000 after buying an additional 139 shares during the last quarter. Caldwell Sutter Capital Inc. raised its holdings in NIKE by 6.3% during the second quarter. Caldwell Sutter Capital Inc. now owns 2,390 shares of the footwear maker’s stock worth $170,000 after buying an additional 142 shares during the last quarter. Salomon & Ludwin LLC grew its holdings in shares of NIKE by 10.1% during the second quarter. Salomon & Ludwin LLC now owns 1,575 shares of the footwear maker’s stock valued at $120,000 after buying an additional 145 shares during the last quarter. Finally, Westmount Partners LLC grew its holdings in shares of NIKE by 2.9% during the second quarter. Westmount Partners LLC now owns 5,165 shares of the footwear maker’s stock valued at $367,000 after buying an additional 146 shares during the last quarter. 64.25% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Cowen raised NIKE from a “hold” rating to a “buy” rating in a research note on Wednesday, September 10th. Bank of America raised their price target on shares of NIKE from $80.00 to $84.00 and gave the company a “buy” rating in a research note on Friday, June 27th. TD Cowen raised NIKE from a “hold” rating to a “buy” rating and lifted their target price for the stock from $62.00 to $85.00 in a report on Wednesday, September 10th. Sanford C. Bernstein reissued a “buy” rating and issued a $90.00 price target on shares of NIKE in a research note on Wednesday. Finally, Morgan Stanley set a $72.00 price objective on NIKE and gave the stock a “positive” rating in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, NIKE presently has a consensus rating of “Moderate Buy” and an average price target of $81.57.

NIKE Company Profile

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.