Nike earnings healthily beat expectations, but stock falls
- Author: Zachary Reyes Mar 24, 2017,
Mar 24, 2017, 14:22
The number of shares traded in the last trading session was 14.49 Million.
Nike Inc (NYSE:NKE) has a market capitalization of $88.18M and most recently 1.33B outstanding shares have been calculated. Nike now has a consensus rating of "Buy" and a consensus price target of $61.46. "Three to five years ago, a competitive environment (for Nike) was nearly non-existent and the market was moving towards athleisure", said Edward Jones analyst Brian Yarbrough. Credit Suisse Group AG set a $67.00 price target on Nike and gave the stock a buy rating in a research note on Tuesday, March 14th. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Over the last twelve months Nike, Inc.'s stock price has decreased by -10.41% from 61.67 to 55.25.
Citigroup raised its price target for Nike to $66 from $60. Insiders sold 636,000 shares of company stock valued at $33,477,680 in the last quarter. A total of 37.41M shares exchanged hands, whereas the company's average trading volume stands at 9.41M shares. Following the completion of the transaction, the chairman now owns 1,966,235 shares in the company, valued at $104,092,480.90. The disclosure for this sale can be found here.
"This is Nike's third consecutive decline in North American futures and its worst decline in over seven years", Cowen & Co. analyst John Kernan pointed out on Tuesday.
The industry was eagerly awaiting Nike's quarterly results to see whether the relative weakness of late past year would continue. With consumers deciding that "digital isn't just part of the shopping experience" but the "foundation" of it, Parker said Nike is driving e-commerce, which saw an 18% boost in the third quarter.
"However, it is evident to us that Nike's new and existing initiatives will drive earnings upside in coming quarters", Poser wrote. Vontobel Asset Management Inc. increased its position in shares of Nike by 15.8% in the third quarter.
Revenues for the Nike brand were up 7% to $7.9 billion on a currency-neutral basis, driven by double-digit growth in Western Europe, Greater China and emerging markets, as well as the sportswear and Jordan brand categories.
Nike, Inc. (NYSE:NKE) has a 50 day moving average of 56.28 and a 200 day moving average of 53.37.
Revenue rose 5 percent to $8.43 billion in the quarter, versus the average estimate of $8.47 billion, according to Thomson Reuters I/B/E/S.
United States sportswear behemoth Nike Inc limped into the start of Wednesday's session after disappointing investors with soft sales numbers and a cautious outlook statement. On a currency neutral basis, it anticipates revenues to increase in the high single-digit range. Investors of record on Monday, March 6th will be paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.30%. The ex-dividend date is Thursday, March 2nd. Nike's dividend payout ratio is presently 31.72%. They claim that Nike "understands the market dynamics are shifting, not only with respect to the digital disruption ongoing in NA retail, but also with respect to the competitive landscape", but worry that changes will rake a while. If you are reading this piece of content on another site, it was illegally copied and reposted in violation of USA & worldwide trademark and copyright legislation. This validates Nike's global brand-building strategies, which should reap future benefits as disposable income and athletic participation trends rise in these regions.