NIKE (NYSE:NKE) Shares Gap Up After Strong Earnings

NIKE, Inc. (NYSE:NKE)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $69.73, but opened at $74.35. NIKE shares last traded at $71.94, with a volume of 14,064,968 shares changing hands.

The footwear maker reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.22. NIKE had a net margin of 6.23% and a return on equity of 21.16%. The firm had revenue of $11.72 billion during the quarter, compared to the consensus estimate of $10.96 billion. During the same quarter last year, the firm earned $0.70 earnings per share. The firm’s revenue was up 1.0% compared to the same quarter last year.

NIKE Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were issued a dividend of $0.40 per share. 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 dividend payout ratio is currently 74.07%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on NKE shares. Truist Financial reissued a “buy” rating and issued a $85.00 target price on shares of NIKE in a report on Wednesday. Argus upgraded shares of NIKE to a “buy” rating in a research note on Sunday, July 6th. JPMorgan Chase & Co. boosted their price objective on shares of NIKE from $93.00 to $100.00 and gave the stock an “overweight” rating in a report on Wednesday. The Goldman Sachs Group set a $85.00 target price on shares of NIKE and gave the company a “buy” rating in a report on Thursday, September 25th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $115.00 price target on shares of NIKE in a research report on Monday. Three research analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $81.57.

Insider Transactions at NIKE

In related news, Chairman Mark G. Parker sold 86,078 shares of the firm’s stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $75.93, for a total value of $6,535,902.54. Following the transaction, the chairman owned 744,988 shares in the company, valued at approximately $56,566,938.84. This trade represents a 10.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On NIKE

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased its holdings in NIKE by 344.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 26,698,835 shares of the footwear maker’s stock valued at $1,694,842,000 after purchasing an additional 20,688,013 shares in the last quarter. Norges Bank acquired a new stake in shares of NIKE in the second quarter valued at about $835,063,000. Wellington Management Group LLP raised its holdings in shares of NIKE by 24.9% during the 1st quarter. Wellington Management Group LLP now owns 45,383,916 shares of the footwear maker’s stock valued at $2,880,971,000 after buying an additional 9,043,180 shares during the period. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its position in NIKE by 3,129.9% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 9,091,426 shares of the footwear maker’s stock worth $645,855,000 after acquiring an additional 8,809,950 shares in the last quarter. Finally, Harris Associates L P purchased a new position in NIKE in the 2nd quarter worth approximately $621,525,000. Institutional investors and hedge funds own 64.25% of the company’s stock.

NIKE Price Performance

The company has a market cap of $110.16 billion, a price-to-earnings ratio of 38.25, a P/E/G ratio of 2.79 and a beta of 1.29. The company’s 50-day simple moving average is $74.71 and its 200-day simple moving average is $67.32. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.19 and a quick ratio of 1.50.

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.