Franklin Resources Inc. has reduced its stake in NIKE, Inc. (NYSE:NKE) by 18.9% during the second quarter of the fiscal year, as detailed in its latest 13F filing with the U.S. Securities and Exchange Commission (SEC). The asset management firm now holds 8,295,048 shares of the athletic footwear company after divesting 1,939,073 shares, which are valued at approximately $589,280,000.
This reduction in holdings highlights the shifting landscape among institutional investors in NIKE, with several other large firms also adjusting their positions. For instance, Ames National Corp increased its holdings by 3.2% in the same quarter, acquiring 200 additional shares for a total of 6,528 shares valued at $464,000. Meanwhile, Wealth Advisors of Iowa LLC established a new position worth $207,000.
In a notable move, Swiss National Bank grew its investment by 7.0%, adding 234,600 shares to reach a total of 3,566,300 shares valued at $253,350,000. Personal CFO Solutions LLC also expanded its stake by 6.7%, now holding 17,868 shares worth $1,269,000. Additionally, ABN AMRO Bank N.V. acquired a new stake valued at $256,000. Overall, institutional investors and hedge funds control 64.25% of NIKE’s stock.
Insider Transactions and Stock Performance
In related news, NIKE’s Director, Jorgen Vig Knudstorp, purchased 16,150 shares on November 7, 2023, at an average price of $62.09 per share, totaling approximately $1,002,753.50. Following this acquisition, Knudstorp’s direct ownership increased to 21,388 shares, valued at around $1,327,980.92, marking a significant 308.32% increase in his holdings.
Conversely, Executive Vice President Treasure Heinle sold 4,300 shares on October 6, 2023, at an average price of $71.27, resulting in a transaction value of $306,461. Following this sale, Heinle’s remaining shares dropped to 29,396, valued at approximately $2,095,052.92, representing a decline of 12.76% in their position. Currently, insiders own 0.80% of the company’s stock.
NIKE announced its latest quarterly earnings on September 30, 2023. The company reported an earnings per share (EPS) of $0.49, surpassing analysts’ consensus estimates of $0.27 by $0.22. The reported revenue of $11.72 billion exceeded the anticipated $10.96 billion. NIKE’s net margin stood at 6.23%, with a return on equity of 21.16%. Compared to the same quarter last year, the revenue showed a modest year-over-year increase of 1.0%, although EPS declined from $0.70.
Dividend and Analyst Ratings
In addition to its financial performance, NIKE declared a quarterly dividend of $0.41 per share, payable on January 2, 2024. Shareholders on record as of December 1, 2023, will receive this payout, translating to an annualized dividend of $1.64 and a yield of 2.6%. This dividend marks an increase from the previous quarterly payment of $0.40, with a current payout ratio of 82.05%.
Recent analyst evaluations reflect a positive outlook for NIKE. Truist Financial reaffirmed a “buy” rating with a price target of $85.00. Stifel Nicolaus set a target of $68.00, designating it as a “hold,” while Morgan Stanley provided a price target of $72.00 with a “positive” rating. Piper Sandler and Royal Bank of Canada also maintained favorable ratings, with Piper setting a target of $84.00 and RBC reaffirming an “outperform” rating. Currently, three analysts rate the stock as a Strong Buy, twenty-six as Buy, and seven as Hold, leading to a consensus rating of “Moderate Buy” with a target price averaging $82.24 according to MarketBeat.com.
With these developments, NIKE continues to navigate the complexities of the retail and athletic sectors, adapting to market demands while maintaining a strong position among institutional investors.
