Nike Shares Drop 2.3% to Lowest Level Since 2014 After Truist Lowers Rating

27 August 2026

Beaverton, Oregon, August 26, 2026, 21:07 (PDT)

Nike finished at $38.59, falling 2.25%, after hitting a new 52-week low of $38.41.
Truist lowered its rating on the stock to Hold and reduced its price target to $42 from $47.
Wholesale revenue for fiscal 2026 reached $27.5 billion, accounting for 59.3% of Nike’s overall total.

NIKE, Inc. (NYSE:NKE) stock fell 2.25% on Wednesday following a downgrade by Truist to Hold from Buy. Truist also lowered its price target to $42 from $47, pointing to softening footwear trends at Dick’s Sporting Goods and Foot Locker Truist action.

The share price declined by $0.89 to $38.59, touching an intraday low of $38.41, marking its weakest point since 2014. Trading volume totaled 36.2 million shares, which is 1.44 times the 20-day average market data.

The drop wiped out roughly $1.32 billion in quoted equity value, based on 1.48 billion outstanding shares. Truist’s $5 decrease in target price amounts to a bigger $7.4 billion adjustment in valuation, using the same number of shares. The revised target remains 8.8% higher than Wednesday’s closing price.

The analyst’s shift is significant as wholesale now drives Nike’s growth. Wholesale contributed $27.5 billion in fiscal 2026, accounting for 59.3% of Nike’s $46.4 billion in revenue. While wholesale grew 6%, revenue from Nike Direct dropped 6% Nike results.

Dick’s posted results that contradicted this trend. The company’s Foot Locker segment struggled with excess inventory, increased markdowns, and a lack of hit shoe releases. Dick’s revised its annual forecast for Foot Locker, now projecting comparable sales to range from flat to a 2% decline, cutting its previous growth prediction Reuters.

Signal	Latest measure	Investor read-through
Nike wholesale, FY2026	$27.5bn; +6%	Represents 59.3% of all revenue
Nike Direct, FY2026	$17.7bn; -6%	Recovery is increasingly reliant on external partners
Foot Locker 2026 comps outlook	0% to -2%	Older sneaker lines not moving well
Truist target	$42, cut from $47	8.8% higher than close on Wednesday

The division persisted in the fourth quarter. Wholesale revenue increased by 4% to $6.6 billion, or by 1% on a constant currency basis. Nike Direct declined 7% to $4.1 billion, and digital revenue dropped 12%.

Nike reported a 20 basis point improvement in gross margin for the full year, bringing it to 42.9%. In the fourth quarter, the margin rose to 49.2%, bolstered by an anticipated $986 million in tariff recovery. Without this non-recurring gain, core margin performance showed more pressure.

Wall Street sentiment is mixed. Among 39 analysts monitored by S&P Global, the consensus is Hold, with an average price target of $50.52. Analyst forecasts span from $23 to $94, highlighting broad disagreement over the comeback analyst data.

The stock has declined 51.3% in the past 12 months, remaining under both its 50-day and 200-day moving averages. After-hours trading saw a 0.36% rebound to $38.73 by 19:59 EDT, though this slight rise left shares near a multi-year low.

Risks: Foot Locker does not represent the entirety of Nike’s operations. Factors such as its efforts to clear inventory, global presence, and store variety may mask actual demand for the brand. Upcoming Nike product launches might lead to a quicker rebound in sell-through than Truist anticipates. Conversely, extended periods of discounting pose a risk of continued weakness in wholesale orders and pressure on gross margin.

The upcoming shareholder record date is set for September 1, which determines eligibility for Nike’s $0.41 quarterly dividend. The payout will occur on October 1 Nike dividend notice. New wholesale demand and improved partner inventory levels are still required for a potential downgrade assessment.

NYSE:NKE · Stock move

Nike’s wholesale test

A fresh downgrade meets a 2014-era share price

Market data: August 26, 2026, 19:59 EDT
Dashboard prepared: August 27, 2026, 06:07 CEST

Regular close

$38.59

−$0.89 · −2.25%

After hours

$38.73

+$0.14 · +0.36%

Session volume

36.2M

1.44× 20-day average

Market value

$57.25B

About $1.32B erased

Six-session price path

Closes: $41.05, $40.21, $40.76, $40.75, $39.48 and $38.59. The final two sessions cut 5.3% from the stock.

Catalyst

Truist: Hold from Buy.

Target: $42 from $47.

Implied upside: 8.8% to the regular close.

Weak Foot Locker sell-through increased uncertainty around Nike’s turnaround. The $5 target cut equals about $7.4 billion across 1.48 billion shares.

Revenue channel mix · FY2026

Wholesale

$27.5B

Nike Direct

$17.7B

Other

$1.2B

Wholesale rose 6% reported. Nike Direct fell 6%. That makes partner demand the clearest near-term read-through.

Fundamentals and valuation

FY2026 revenue	$46.40B
Net income	$3.11B
Gross margin	42.9%
Cash / debt	$9.03B / $11.04B
Trailing / forward P/E	18.4× / 22.5×
Free cash flow	$2.18B

Analyst expectations

Measure	Value	Vs. $38.59 close
Consensus	Hold · 39 analysts	—
Average target	$50.52	+30.9%
Median target	$46.50	+20.5%
Low / high	$23 / $94	−40.4% / +143.6%
FY2027 revenue estimate	$45.67B	−1.6% YoY
FY2027 EPS estimate	$1.71	+8.5% YoY

Levels and dates

52-week range	$38.41–$79.51
50-day average	$42.15
200-day average	$52.28
52-week return	−51.3%
Dividend record date	Sep. 1
Dividend payment	Oct. 1

Bull case

Wholesale grew while Direct contracted. Cleaner partner inventories and stronger 2027 launches could turn that distribution shift into sustained revenue growth. The average analyst target leaves 30.9% upside.

Risk case

Foot Locker’s flat-to-down-2% comparable-sales outlook points to weak legacy sneaker demand. Persistent promotions could reduce future Nike orders and compress gross margin. The analyst low target is $23.

Sources: Nike FY2026 results and dividend notice; Reuters on Dick’s Sporting Goods and Foot Locker; StockAnalysis/S&P Global analyst and market data. Figures are reported or derived from the stated inputs and timestamped above.

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Jerzy Lewandowski is a senior markets editor at TS2.tech. His coverage ranges from stocks and semiconductors to AI and the broader global markets. He studied economics at the University of Warsaw and worked in investment analysis before becoming a financial journalist. Follow Jerzy Lewandowski on Google News.

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