Franklin Resources Inc. has reduced its stake in NIKE, Inc. by approximately 1,939,073 shares, representing an 18.9% decrease during the second quarter of 2023. According to its latest filing with the U.S. Securities and Exchange Commission (SEC), the investment firm now holds 8,295,048 shares of the sportswear giant, valued at around $589,280,000. The adjustment reflects a strategic shift among large institutional investors amidst fluctuations in the market.
Several other investors have also made recent adjustments to their holdings in NIKE. Ames National Corp increased its stake by 3.2%, now owning 6,528 shares valued at $464,000 after purchasing an additional 200 shares. Wealth Advisors of Iowa LLC took a new position in NIKE, acquiring shares worth $207,000. Meanwhile, Swiss National Bank raised its holdings by 7.0%, bringing its total to 3,566,300 shares valued at $253,350,000. Personal CFO Solutions LLC also increased its position by 6.7% with an investment now worth $1,269,000. Overall, institutional investors and hedge funds own 64.25% of NIKE’s stock.
Insider Activity and Stock Performance
In related news, NIKE’s Director, Jorgen Vig Knudstorp, bought 16,150 shares on November 7, 2023, at an average price of $62.09 per share, totaling approximately $1,002,753.50. This acquisition increased his ownership by 308.32%, bringing his total shares to 21,388, valued at about $1,327,980.92. On the other hand, Executive Vice President Treasure Heinle sold 4,300 shares on October 6, 2023, at an average price of $71.27, amounting to $306,461.00. Following this sale, she retains 29,396 shares valued at approximately $2,095,052.92, reflecting a decrease in her holding of 12.76%. Currently, insiders own about 0.80% of NIKE’s stock.
NIKE, Inc. reported its quarterly earnings on September 30, 2023, revealing earnings per share (EPS) of $0.49, exceeding analysts’ expectations of $0.27 by $0.22. The company’s revenue for the quarter was $11.72 billion, surpassing the anticipated $10.96 billion. This marked a year-over-year revenue increase of 1.0%. NIKE’s net margin stood at 6.23%, with a return on equity of 21.16%. Analysts forecast that NIKE will achieve an EPS of $2.05 for the current year.
Dividend Announcement and Analyst Ratings
In addition to its financial performance, NIKE has declared a quarterly dividend of $0.41 per share, scheduled for payment on January 2, 2024, to investors on record as of December 1, 2023. This represents an annualized dividend of $1.64 and a yield of 2.6%, marking an increase from its previous quarterly dividend of $0.40. The company maintains a payout ratio of 82.05%.
Numerous analysts have recently provided insights on NIKE’s stock. Truist Financial reaffirmed a “buy” rating with a price target of $85.00, while Stifel Nicolaus set a target of $68.00 with a “hold” rating. Morgan Stanley issued a price target of $72.00 with a “positive” outlook, and Piper Sandler suggested a price objective of $84.00 with an “overweight” rating. Royal Bank of Canada also reiterated an “outperform” rating. Overall, three analysts rate the stock as a Strong Buy, while twenty-six recommend it as a Buy, and seven suggest a Hold. MarketBeat.com indicates a consensus rating of “Moderate Buy” with a target price of $82.24.
NIKE, Inc. continues to be a significant player in the athletic footwear and apparel market, with its diverse range of products including the Jumpman and Converse brands. The company remains committed to growth and shareholder returns as indicated by its recent financial and operational decisions.
