Hedge Funds Snap Up Nike Stock Amid Declines

Snack-Sized Version:

Financial Gravity Asset Management acquired 24,760 shares of Nike in Q1, valued at around $1.57 million, per SEC filings. Other hedge funds also increased their stakes, signaling ongoing institutional confidence despite a declining stock price. Nike’s quarterly earnings slightly beat analyst expectations, though revenue dropped nearly 12% year-over-year. The company maintains a healthy balance sheet, with a current ratio over 2.2 and a 2.2% dividend yield. Analysts remain split, offering a “moderate buy” consensus despite mixed recent ratings. The stock hovers at $72, down from highs but still above its yearly low, showing resilience amid market volatility. Hedge funds appear bullish on a rebound, hoping Nike keeps just doing it—even when earnings trip a little.

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Financial Gravity Asset Management made a notable play in the first quarter by acquiring 24,760 shares of Nike for about $1.57 million. This purchase reflects continued institutional interest in the athletic giant despite a challenging year marked by lower earnings and declining revenue. Several other hedge funds also grew their positions, including Roxbury Financial and EnRich Financial, signaling a cautious but consistent confidence in Nike’s long-term potential. With 64% of shares held by institutions, the company clearly retains a strong following among professional investors who like a good comeback story.

Nike’s quarterly report showed a modest earnings beat with $0.14 per share, just above the expected $0.12. However, revenue slipped nearly 12% compared to the same quarter last year, reminding everyone that even a titan of sportswear occasionally trips over its own shoelaces. The company’s current ratio sits at a healthy 2.21 and it maintains a manageable debt-to-equity ratio of 0.60, keeping its financial footing secure. Analysts remain cautiously optimistic, offering a consensus “moderate buy” with an average price target of around $77, though recent downgrades and a few sell ratings show cracks in the bullish armor.

The stock itself has seen better days, closing at $72.66, down from a 52-week high of $90 but still above its low of $52. That makes it a tempting target for funds willing to bet on a recovery. Nike also continues rewarding shareholders with dividends, paying $0.40 per share quarterly at a 2.2% yield, which is nothing to sneer at in today’s climate.

Ultimately, hedge funds seem to believe the swoosh still has plenty of spring left. While earnings have stumbled and growth looks slower, the brand remains iconic and financially stable. It’s clear Wall Street sees this as a marathon, not a sprint—banking on Nike to keep lacing up and pushing forward, no matter how bumpy the road ahead.