Nike Shares Reach 52-Week Low After Institutional Selling
Key Takeaways
- •Baird Financial Group sold 290,482 Nike shares in the second quarter and retained 332,029 shares worth about $13.63 million.
- •Nike reported quarterly earnings of $0.20 per share and revenue of $10.97 billion, beating forecasts despite a 1.1% annual revenue decline.
- •The consensus view among 37 analysts is Hold, with an average price target of $50.12, while several firms recently reduced their targets.
- •Nike shares traded below their 50-day and 200-day moving averages at $41.04 and $45.32, respectively.
- •Nike declared a quarterly dividend of $0.41 per share, representing an annualized yield of 4.5%.
Shares of Nike (NKE) opened Friday at $36.81, just above their 52-week low of $36.55. The stock has declined 32.7% since March 2026, reducing Nike’s market capitalization to $54.62 billion.
Baird Financial Group was among the most significant institutional sellers during the second quarter, cutting its Nike holdings by 46.7%. The investment firm sold 290,482 shares and retained 332,029 shares valued at approximately $13.63 million. Institutional investors still own 64.25% of Nike’s outstanding shares.
Other investment firms made smaller changes to their positions. Scarborough Advisors, Cornerstone Financial Management, and Sankala Group each initiated new positions valued between $25,000 and $26,000. Meeder Asset Management added 285 shares, bringing its total holding to 548 shares.
Nike’s latest quarterly results exceeded analyst expectations, although revenue continued to decline year over year. For the quarter ended June 30, NIKE, Inc. reported earnings per share of $0.20, compared with the $0.11 forecast. Revenue reached $10.97 billion, above the projected $10.85 billion, but fell 1.1% from the same period a year earlier.
The company reported a return on equity of 16.54% and a net margin of 6.70%.
Wall Street Ratings and Price Targets
Several investment banks have reduced their price targets for Nike in recent months. Rothschild and Co Redburn lowered its target from $45 to $37 while maintaining a “Sell” recommendation. Wells Fargo reduced its target from $45 to $40 and kept an “Equal Weight” rating. Goldman Sachs cut its target from $46 to $42 while retaining a “Neutral” designation.
Piper Sandler also lowered its target from $50 to $45. Across 37 Wall Street analysts, the aggregate consensus rating remains “Hold,” with an average price target of $50.12. Six analysts currently have “Sell” or equivalent ratings on the shares.
Morgan Stanley has warned of further challenges, citing continued operational headwinds. Nike is also scheduled to be removed from the S\u0026P 100 index, a change that may reduce passive buying from index funds. BMO Capital Markets recently assigned the stock an “Underperform” rating.
Executive Share Sales
Two senior Nike executives recently sold shares under pre-established Rule 10b5-1 trading plans. Chief Operating Officer Venkatesh Alagirisamy sold 3,671 shares on September 9 at an average price of $37.59, generating approximately $138,000. Executive Amy Montagne sold 4,867 shares on August 7 at $42.05, for a total of roughly $204,657.
Because the transactions were conducted under pre-established Rule 10b5-1 plans, the reported sales do not by themselves establish that the executives made a new discretionary decision about Nike’s prospects at the time of the trades.
Company insiders have collectively sold 14,974 shares valued at $600,126 over the past three months. Insiders own 1.10% of Nike’s outstanding shares.
NKE is trading well below its 50-day moving average of $41.04 and its 200-day moving average of $45.32. Based on projected full-year earnings per share of $1.74, the stock has a forward price-to-earnings multiple of 22.3x.
Nike announced a quarterly dividend of $0.41 per share, payable on October 1 to shareholders of record as of September 1. The annualized dividend yield is 4.5%, while the payout ratio is 78.47%.
Source: Blockonomi
