Nike Inc NKE shares are trading higher Monday as the stock rebounds after falling last week on the company's first-quarter results, which showed an increase in quarter-ended inventories.
What Happened: Nike shares hit new 52-week lows last week. The company's quarterly results topped analyst estimates, but investors were focused on inventory issues.
Nike said total inventories jumped 44% to $9.7 billion, driven by elevated in-transit inventories from ongoing supply chain volatility, partially offset by strong consumer demand during the quarter.
"Our focus continues to be the consumer, as we take action to navigate near-term dynamics while expanding long-term structural benefits through our Consumer Direct Acceleration strategy," said Matthew Friend, executive vice president and CFO of Nike.
Several analysts also slashed price targets on the stock following the company's quarterly results. Further analyst adjustments continue to roll in Monday.
- Barclays analyst Adrienne Yih maintained Nike with an Equal-Weight rating and lowered the price target from $110 to $83.
- Goldman Sachs analyst Kate McShane maintained Nike with a Buy rating and lowered the price target from $120 to $98.
- Baird analyst Jonathan Komp maintained Nike with an Outperform rating and lowered the price target from $127 to $100.
NKE Price Action: Nike has a 52-week high of $167.91 and a 52-week low of $82.50.
The stock was up 3.65% at $86.15 at time of publication, according to Benzinga Pro.
Photo: grailify from Pixabay.
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