NIKE (NYSE:NKE) Reports Strong Quarterly Earnings, Surpassing Expectations

NIKE (NYSE:NKE) released its quarterly earnings results on Thursday, showing positive numbers that exceeded analyst forecasts. The well-known footwear manufacturer reported earnings per share (EPS) of $0.54 for the quarter, which is $0.26 higher than analysts' expectations of $0.28, as noted by Briefing.com.

The company achieved a total revenue of $11.27 billion during this period, surpassing predictions of $11.02 billion. Despite this positive performance, NIKE's revenue is down 9.1% compared to the same quarter last year, when the company recorded an EPS of $0.98. The net margin for NIKE was 9.98%, and it had an impressive return on equity of 36.99%.

NIKE Stock Performance

Following the earnings announcement, NIKE's stock price fell by 1.9%, closing at $71.61. The trading volume for the day was about 21.1 million shares, significantly higher than the average of 12.2 million shares. NIKE currently holds a market capitalization of approximately $105.92 billion. The stock's price-to-earnings ratio stands at 22.10, with a PEG ratio of 2.52 and a beta of 1.02. Its debt-to-equity ratio is 0.57, indicating a balanced approach to leveraging, while its current and quick ratios are 2.22 and 1.51, respectively. Over the past year, the stock has reached a low of $68.62 and a high of $101.92.

Dividend Announcement

Alongside its earnings report, NIKE announced a quarterly dividend of $0.40 per share, scheduled to be paid on April 1st. Shareholders registered by March 3rd will receive this dividend, totaling an annualized dividend of $1.60, resulting in a dividend yield of 2.23%. The company maintains a dividend payout ratio of 49.38%.

Insider Trading Activity

In other notable news, Director John W. Rogers, Jr. purchased 2,500 shares of NIKE stock on December 27th for an average price of $76.65 each, valuing the transaction at $191,625. This increase raised his total ownership to 34,403 shares, worth nearly $2.64 million. Meanwhile, Chairman Mark G. Parker sold 169,732 shares on February 14th at an average price of $72.83, bringing in about $12.36 million. After his sale, he still holds 896,632 shares valued at approximately $65.3 million, representing a 15.92% reduction in his stake. Insider ownership is currently at 1.10% of the company's total shares.

Institutional Investors' Involvement

A recent shift in institutional investment occurred as Brighton Jones LLC significantly increased its stake in NIKE by 388.5% during the last quarter of the year, acquiring an additional 160,980 shares. The firm's total holdings now stand at 202,411 shares with a value of around $15.32 million. Institutional investors and hedge funds collectively own about 64.25% of NIKE's stock.

Analyst Ratings and Recommendations

Recent analyst assessments indicate mixed opinions on NIKE's stock. Stifel Nicolaus has adjusted its price target from $79.00 to $75.00 with a hold rating on the shares. China Renaissance initiated coverage on the stock with a similar hold rating. Contrastingly, Jefferies Financial Group upgraded NIKE from hold to buy and raised the price target from $75.00 to $115.00, while Guggenheim reiterated a buy rating with a target of $110.00. Needham & Company has set a new price goal of $80.00 from the previous $84.00 with a buy rating as well. Current figures show that 15 analysts recommend holding, 16 suggest buying, and 2 indicate a strong buy. The average consensus price target is $89.54, reflecting a moderate buy sentiment for NIKE stock.

About NIKE, Inc.

NIKE, Inc. is a global leader in the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories. The company offers a wide variety of products under various trademarks, including Jumpman, Converse, Chuck Taylor, All Star, One Star, and more.

NIKE, Earnings, Stocks