On Wednesday, investors demonstrated significant interest in NIKE, Inc. (NYSE:NKE) by purchasing 158,594 call options, marking an increase of approximately 66% from the average daily volume of 95,367 call options. This surge in trading activity reflects heightened investor confidence in the company as it navigates a competitive market.
Insider Trading Activity
In related developments, NIKE’s Chairman, Mark G. Parker, sold 86,078 shares of the company’s stock on November 14, 2023, for an average price of $64.80. This transaction totaled $5,577,854.40, resulting in an 11.73% decrease in his overall position. Following the sale, Parker retains 647,615 shares, valued at approximately $41,965,452.
Conversely, NIKE’s Director, Robert Holmes Swan, acquired 8,691 shares on December 22, 2023, at an average price of $57.54. This purchase, amounting to $500,080.14, reflects a 25.12% increase in his holdings, as he now owns 43,293 shares valued at around $2,491,079.22. Both transactions were disclosed in filings with the Securities and Exchange Commission, accessible through their website.
Institutional Investor Activity
Institutional investors have also been active in the NIKE stock market. Notably, Exchange Traded Concepts LLC increased its stake by a remarkable 697.5% in the third quarter, now holding 228,889 shares worth $15,960,000. Similarly, Soros Fund Management LLC raised its holdings by 33.0% in the second quarter, acquiring an additional 75,000 shares to reach a total of 302,320 shares, valued at $21,477,000.
Other notable transactions include Brighton Jones LLC, which increased its holdings by 54.6%, acquiring 37,019 shares for a total of $7,307,000, and Soltis Investment Advisors LLC, which lifted its position by 238.8%. As of now, institutional investors hold 64.25% of NIKE’s shares.
Stock Performance and Financial Health
During Wednesday’s trading session, NIKE’s stock price rose by $2.84, reaching $60.18 with a total of 21,016,780 shares changing hands, surpassing its average volume of 16,471,836. The company’s market capitalization stands at $88.96 billion, with a price-to-earnings ratio of 35.31. Despite fluctuations, NIKE’s stock has shown resilience, with a 1-year low of $52.28 and a high of $82.44.
NIKE recently reported its quarterly earnings on December 18, 2023, revealing an earnings per share (EPS) of $0.53, exceeding analysts’ expectations of $0.37. The company generated a revenue of $12.43 billion, surpassing the consensus estimate of $12.19 billion. This represents a year-over-year revenue increase of 0.6%, although it is a decline from the $0.78 EPS reported during the same period last year.
Dividend Declaration and Analyst Ratings
In a positive move for shareholders, NIKE declared a quarterly dividend of $0.41 to be paid on January 2, 2024, for those on record as of December 1, 2023. This marks an increase from the previous quarterly dividend of $0.40, reflecting the company’s commitment to returning value to its investors. The annualized dividend now stands at $1.64, offering a yield of 2.7%.
Analysts have also been revising their price targets for NIKE. Stifel Nicolaus set a target price of $65.00 with a “hold” rating, while JPMorgan Chase & Co. adjusted its target from $100.00 to $86.00, maintaining a “buy” rating. TD Cowen has upgraded NIKE from “hold” to “buy,” raising their price target from $62.00 to $85.00.
Currently, the consensus rating for NIKE stands at “Moderate Buy” with an average target price of $78.14, as reported by MarketBeat.com.
About NIKE
Founded in 1964 as Blue Ribbon Sports, NIKE, Inc. (NYSE: NKE) is a leading global designer, marketer, and distributor of athletic footwear, apparel, equipment, and accessories. Headquartered near Beaverton, Oregon, the company is known for its innovative products across various sports categories including running, basketball, soccer, and training. NIKE markets under several prominent brands, including Nike, Jordan, and Converse, utilizing a combination of wholesale, branded retail, and direct-to-consumer channels.
