Here's Why Nike's Stock Is Falling Despite a Slam Dunk Quarter

Cornelia Mascio
Marzo 22, 2017

Nike reported a third-quarter profit of 68 cents U.S. per share, compared with the average analyst estimate of 53 cents USA per share. NKE's seven period stock performance has resulted in shares rising by a 3.55% and sporting a -5.68% return over the last 12 months.

Several other institutional investors have also added to or reduced their stakes in the stock.

Sales in footwear and apparel segments in China rose 14 and 22 percent, respectively, excluding currency changes for the quarter.

The sportswear giant report $8.43bn of revenues over the last three months, slightly behind the $8.47bn expected by a consensus poll prepared by Reuters. The stock Jumped 4.9 percent over the past six months. Operating overheads dropped 1% in the quarter as lower bad debt expenses and lower administrative costs more than mitigated the expenses related to investments in the DTC business. Clarius Group LLC acquired a new position in shares of Nike during the fourth quarter valued at about $111,000. NY now owns 77,310 shares of the footwear maker's stock valued at $4,070,000 after buying an additional 316 shares in the last quarter. Finally, Telemus Capital LLC raised its stake in shares of Nike by 12.8% in the third quarter. The Stock opened its session at $58 and closed at $58.68 by showing increase of 1.52 percent. The trade volumes are expected to remain volatile during earnings announcement period, as many investors would reconsider their investment in NIKE, Inc. based on the results. Shareholders of record on Monday, March 6th will be given a $0.18 dividend.

Prologis, Inc. (NYSE:PLD) announced a cash dividend payment of $0.44 per share is scheduled to be paid on March 31, 2017. Nike had a net margin of 11.60% and a return on equity of 31.70%.

Several equities analysts have weighed in on NKE shares. One thing to note is Nike is significantly larger than most of its competitors and sales growth tends to slow the larger a company gets, while smaller companies like Under Armour are usually able to grow more quickly. Deutsche Bank AG set a $65.00 price target on shares of Nike and gave the stock a "buy" rating in a research report on Sunday, December 18th.

Digging a bit further, company shares have been noted -10.17% off the 52 week high and 19.26% away from the 52 week low. Using all the ratings on Nike, Inc.

December 20, 2016: NIKE, Inc.

In other news, EVP John F. Slusher sold 136,000 shares of the company's stock in a transaction dated Wednesday, January 4th. The shares were sold at an average price of $52.13, for a total transaction of $7,089,680.00. Following the sale, the executive vice president now directly owns 357,713 shares of the company's stock, valued at $18,740,584.07. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP David J. Ayre sold 200,000 shares of the stock in a transaction on Monday, January 30th.

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