Stock traders significantly increased their activity in NIKE, Inc. (NYSE: NKE) on December 17, 2024, as they purchased a remarkable total of 158,594 call options. This figure marks an increase of approximately 66% compared to the average daily volume of 95,367 call options. Such heightened trading activity often signals strong investor sentiment regarding the company’s future performance.
The trading surge coincides with noteworthy insider activities. On November 14, 2024, NIKE’s Chairman, Mark G. Parker, sold 86,078 shares at an average price of $64.80, bringing in approximately $5.58 million. Following this transaction, Parker retained 647,615 shares valued at around $41.97 million, reflecting an 11.73% reduction in his holdings. This sale has been disclosed in a legal filing with the Securities and Exchange Commission (SEC).
In contrast, Director Robert Holmes Swan acquired 8,691 shares on December 22, 2024, at an average price of $57.54, totaling about $500,080.14. Following this purchase, Swan holds 43,293 shares valued at approximately $2.49 million, indicating a 25.12% increase in his position. The details of this transaction are also available through SEC filings.
Insider trading activity over the past quarter has shown a total acquisition of 74,841 shares worth $4.45 million. Currently, insiders own 0.80% of the company’s stock, underscoring the ongoing confidence of management in the firm’s future.
Institutional Investors Show Strong Interest
Recent movements among institutional investors further reflect heightened interest in NIKE. Notably, Exchange Traded Concepts LLC boosted its stake in NIKE by an impressive 697.5% during the third quarter, now holding 228,889 shares valued at $15.96 million. Soros Fund Management LLC also increased its holdings by 33.0%, now owning 302,320 shares worth $21.48 million after acquiring an additional 75,000 shares.
Other notable institutional movements include Brighton Jones LLC, which raised its holdings by 54.6% during the third quarter, and Soltis Investment Advisors LLC, which reported a staggering 238.8% increase in its position during the second quarter. Presently, institutional investors control 64.25% of NIKE’s stock, indicating robust professional confidence in the company.
NIKE’s Stock Performance and Financials
On December 17, 2024, NIKE shares experienced a notable uptick, trading up by $2.84 to reach $60.18. During this trading session, approximately 21,016,780 shares exchanged hands, surpassing the average volume of 16,471,836. The company has a market capitalization of $88.96 billion and a price-to-earnings ratio of 35.31.
NIKE’s recent financial performance has also shown resilience. The company reported earnings per share (EPS) of $0.53 for the quarter ending December 18, 2024, exceeding the consensus estimate of $0.37 by $0.16. Revenue for the quarter was $12.43 billion, slightly above the expected $12.19 billion. This represented a year-over-year revenue increase of 0.6%, although EPS declined from $0.78 in the same quarter the previous year.
Looking ahead, analysts anticipate NIKE will post an EPS of $2.05 for the current fiscal year, reflecting ongoing confidence in the brand’s fundamentals.
In addition to financial performance, NIKE recently declared a quarterly dividend of $0.41, which will be paid to shareholders of record on December 1, 2024. This dividend represents an annualized yield of 2.7%, an increase from the previous quarterly dividend of $0.40. The ex-dividend date is set for December 1, 2024.
Analysts Adjust Price Targets
Several research firms have recently updated their price targets for NIKE. Stifel Nicolaus set a target of $65.00 and maintained a “hold” rating. JPMorgan Chase & Co. lowered its target from $100.00 to $86.00 while maintaining a “buy” rating. TD Cowen upgraded its rating to “buy” with a new target of $85.00, reflecting a positive outlook for the brand.
Overall, analysts show a consensus rating of “Moderate Buy” for NIKE, with an average target price of $78.14. The company has garnered two “Strong Buy” ratings, twenty-five “Buy” ratings, and ten “Hold” ratings from market analysts.
About NIKE
NIKE, Inc. (NYSE: NKE) is a leading global designer and marketer of athletic footwear, apparel, equipment, and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman, the company was renamed NIKE in 1971 and is headquartered near Beaverton, Oregon. NIKE develops products for various sports, including running, basketball, soccer, and training, and markets its offerings under brands such as NIKE, Jordan, and Converse.
With a robust direct-to-consumer sales strategy through online platforms and branded retail stores, NIKE continues to strengthen its position in the global market.
