Analysts Set Expectations for Nike Inc’s FY2020 Earnings (NKE)
Nike Inc (NYSE:NKE) – Equities researchers at B. Riley upped their FY2020 EPS estimates for shares of Nike in a note issued to investors on Wednesday, September 19th, Zacks Investment Research reports. B. Riley analyst S. Anderson now expects that the footwear maker will post earnings per share of $3.12 for the year, up from their prior forecast of $3.05. B. Riley currently has a “Neutral” rating and a $84.00 target price on the stock.
Other research analysts have also recently issued research reports about the stock. Wedbush boosted their price objective on shares of Nike from $85.00 to $90.00 and gave the company an “outperform” rating in a research report on Monday, September 10th. Morgan Stanley reiterated a “buy” rating and set a $88.00 price objective on shares of Nike in a research report on Wednesday, September 12th. UBS Group cut shares of Nike from a “buy” rating to a “neutral” rating and upped their price target for the stock from $76.00 to $78.00 in a report on Thursday, June 21st. Wells Fargo & Co set a $82.00 price target on shares of Nike and gave the stock a “neutral” rating in a report on Monday, August 6th. Finally, Telsey Advisory Group upped their price target on shares of Nike from $87.00 to $92.00 and gave the stock an “outperform” rating in a report on Tuesday, September 18th. Two research analysts have rated the stock with a sell rating, seventeen have given a hold rating and twenty-three have assigned a buy rating to the company’s stock. Nike presently has an average rating of “Buy” and an average price target of $84.60.
Nike (NYSE:NKE) last posted its quarterly earnings data on Tuesday, September 25th. The footwear maker reported $0.67 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.63 by $0.04. Nike had a net margin of 5.57% and a return on equity of 40.69%. The business had revenue of $9.95 billion for the quarter, compared to analysts’ expectations of $9.92 billion. During the same quarter in the previous year, the business posted $0.57 earnings per share. The business’s revenue was up 9.7% compared to the same quarter last year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 1st. Shareholders of record on Tuesday, September 4th were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.05%. The ex-dividend date of this dividend was Friday, August 31st. Nike’s payout ratio is 33.06%.
Nike announced that its board has approved a stock buyback plan on Thursday, June 28th that permits the company to buyback $15.00 billion in shares. This buyback authorization permits the footwear maker to purchase up to 12.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.
In other Nike news, CFO Andrew Campion sold 4,130 shares of the stock in a transaction dated Thursday, July 19th. The shares were sold at an average price of $76.76, for a total transaction of $317,018.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Monique S. Matheson sold 10,000 shares of the stock in a transaction dated Monday, July 30th. The shares were sold at an average price of $76.07, for a total transaction of $760,700.00. Following the sale, the executive vice president now directly owns 86,774 shares of the company’s stock, valued at $6,600,898.18. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 72,778 shares of company stock worth $5,969,246. 3.90% of the stock is owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the business. Chevy Chase Trust Holdings Inc. lifted its position in shares of Nike by 0.4% during the second quarter. Chevy Chase Trust Holdings Inc. now owns 1,609,608 shares of the footwear maker’s stock valued at $128,253,000 after buying an additional 6,256 shares during the last quarter. Riverhead Capital Management LLC lifted its position in shares of Nike by 7.6% during the second quarter. Riverhead Capital Management LLC now owns 21,710 shares of the footwear maker’s stock valued at $1,730,000 after buying an additional 1,525 shares during the last quarter. Oregon Public Employees Retirement Fund lifted its position in shares of Nike by 49.3% during the second quarter. Oregon Public Employees Retirement Fund now owns 531,637 shares of the footwear maker’s stock valued at $42,361,000 after buying an additional 175,587 shares during the last quarter. Envestnet Asset Management Inc. lifted its position in shares of Nike by 362.6% during the second quarter. Envestnet Asset Management Inc. now owns 684,436 shares of the footwear maker’s stock valued at $54,536,000 after buying an additional 536,468 shares during the last quarter. Finally, Dragon Financial & Investment Group LLC purchased a new stake in shares of Nike during the second quarter valued at about $215,000. 63.97% of the stock is owned by institutional investors and hedge funds.
Nike Company Profile
NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.
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