Major Institutions Build Significant Positions in Nike Ahead of Earnings

Nike US6541061031

As Nike Inc. approaches its quarterly earnings report in two days, a notable trend has emerged among large-scale money managers. Despite the stock being down roughly 10% year-to-date, several institutional investors have used the period of weakness to substantially increase their holdings. Nike shares traded near $67.74 on Tuesday, with options markets anticipating a potential price swing of approximately 7% following the December 18th results announcement.

Recent regulatory filings have shed light on aggressive buying by key funds during the third quarter, suggesting a strategic bet on a future rebound.

• Park National Corp OH executed one of the most dramatic increases, boosting its Nike stake by a massive 455.8%. The purchase of an additional 194,806 shares brings its total holding to 237,541 shares, valued at approximately $16.56 million.
• Martin Capital Partners LLC also expanded its position significantly, adding 43.6% more shares. The firm now owns 71,569 shares worth about $4.99 million.

This accumulation occurs as Nike's stock price navigates the lower half of its 52-week range, which spans from $52.28 to $82.43. After a weekly gain of around 7%, the equity is now encountering technical resistance near the $70 level.

Wall Street's Divided Outlook on the Sportswear Giant

Analyst sentiment presents a mixed picture in the lead-up to the earnings release, reflecting uncertainty about the company's near-term trajectory. Research notes published Tuesday underscored this divergence.

• Piper Sandler analyst Anna Andreeva reaffirmed a "Buy" recommendation, attaching a price target of $84. This implies an upside potential of nearly 24% from current levels.
• In contrast, UBS analyst Jay Sole maintained a "Hold" rating with a more conservative target of $71, suggesting limited near-term appreciation.

The broader Wall Street consensus currently leans positive, with a majority of analysts rating the stock a "Moderate Buy." The average price target sits at $85.12.

Upcoming Quarterly Report Pivotal for Direction

The December 18th earnings release is widely viewed as a critical catalyst that will test the conviction of these recent institutional buyers. Investors will be comparing the results to the company's strong performance in its first quarter for fiscal year 2026 (ended August 31), where Nike notably surpassed expectations.

In that quarter, the company reported earnings per share of $0.49, soundly beating the $0.27 consensus estimate—an 81% positive surprise. Revenue saw a modest 1% increase to $11.72 billion. The upcoming report will likely determine whether the share price can break through current resistance or if it will retreat to retest its annual lows.