Royal Bank of Canada Lowers NIKE Stock Price Target

The Royal Bank of Canada has recently adjusted its price target for NIKE (NYSE:NKE) stock, lowering it from $67.00 to $66.00. This change was communicated in a research note issued to investors on Friday. The bank has decided to maintain a "sector perform" rating on NIKE, suggesting an expectation that the stock will perform in line with the broader market. Based on the current price, this new target indicates a potential downside of 3.34% from where the stock is trading now.

Recent Evaluations from Other Analysts

In addition to the update from the Royal Bank of Canada, several other brokerage firms have also recently provided their assessments of NIKE. For instance, Wells Fargo & Company has reduced their price target for NIKE from $90.00 to $85.00 while assigning an "overweight" rating. Telsey Advisory Group has chosen to reaffirm a "market perform" rating with a target price of $80.00 for NIKE shares, and Barclays has lowered its target from $79.00 to $70.00 with an "equal weight" rating.

Furthermore, Robert W. Baird has adjusted their price target downward from $105.00 to $99.00, keeping an "outperform" rating for the stock. Conversely, Piper Sandler upgraded NIKE from a "neutral" rating to an "overweight" rating and increased their price target significantly from $72.00 to $90.00. Collectively, fifteen analysts have issued hold ratings on the stock, while sixteen have given buy ratings and two have assigned a strong buy rating. According to the latest consensus data, NIKE holds a "Moderate Buy" rating with an average price target of $87.38.

Current Market Performance

As of a recent trading session, NIKE shares fell by 5.0%, trading at $68.28. In that session, approximately 41 million shares exchanged hands compared to an average daily volume of around 12 million shares. NIKE's market capitalization currently sits at about $100.99 billion, with a price-to-earnings (P/E) ratio of 21.02, a P/E/G ratio of 2.52, and a beta of 1.02. The company also holds a quick ratio of 1.51 and a current ratio of 2.22, with a debt-to-equity ratio of 0.57. Over the past year, NIKE shares reached a low of $65.25 and a high of $101.92.

Recent Earnings Report

NIKE recently reported its earnings for the quarter ended March 20th, indicating that it earned $0.54 per share, which surpassed analyst expectations of $0.28 by $0.26. The company's revenue for the quarter totaled $11.27 billion, exceeding forecasts that anticipated around $11.02 billion. However, NIKE's quarterly revenue indicated a decline of 9.1% year-over-year. Analysts predict that NIKE will generate approximately 2.05 earnings per share for the current year.

Insider Transactions

There has been notable insider activity with NIKE stock as well. Chairman Mark G. Parker sold 169,732 shares recently for a total of about $12.36 million, which reduced his holdings to approximately 896,632 shares worth around $65.3 million. Meanwhile, Director John W. Rogers, Jr. made a purchase of 2,500 shares at an average price of $76.65, increasing his holdings by 7.84% to around 34,403 shares.

Institutional Investor Activity

Institutional investors have shown increased interest in NIKE over recent quarters. State Street Corp has raised its stake by 3.3%, now owning 57.9 million shares valued at roughly $5.14 billion. Meanwhile, Wellington Management Group LLP has increased its stake by 32.4%, owning 36.3 million shares valued at about $2.75 billion. Other institutional investors, including Geode Capital Management and Capital World Investors, have also boosted their investments in NIKE, indicating a trend of growing institutional confidence in the stock. Currently, institutional investors control approximately 64.25% of NIKE's total shares.

Company Overview

NIKE, Inc., along with its subsidiaries, is involved in designing, developing, marketing, and selling athletic footwear, apparel, equipment, and accessories worldwide. The company operates under notable trademarks, including its Jumpman brand and Converse, catering to both athletic and casual markets.

Nike, Finance, Stocks