Nike (NKE) Declined as it Warned Shareholders Of a Potential Lower-Than-Expected Growth

Ensemble Capital Management, an investment management company, released its first quarter 2024 investor letter. A copy of the same can be downloaded here. During the quarter, the strategy gained 10.48% compared to the S&P 500’s 10.56% return. The stock market rallied by 10.56% in Q1 2024, adding to the 11.69% rally in Q4 2023. The strategy performed in line with the S&P 500 returns this quarter after outperforming last quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Ensemble Capital Management featured stocks like NIKE, Inc. (NYSE:NKE) in the first quarter 2024 investor letter. Headquartered in Beaverton, Oregon, NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. On April 15, 2024, NIKE, Inc. (NYSE:NKE) stock closed at $93.10 per share. One-month return of NIKE, Inc. (NYSE:NKE) was -6.86%, and its shares lost 26.23% of their value over the last 52 weeks. NIKE, Inc. (NYSE:NKE) has a market capitalization of $140.521 billion.

Ensemble Capital Management stated the following regarding NIKE, Inc. (NYSE:NKE) in its first quarter 2024 investor letter:

“NIKE, Inc. (NYSE:NKE): After a successful investment in Nike initiated in early 2017 and closed out in early 2020 just before the COVID crisis exploded, we reinitiated on Nike in the spring of 2022. In retrospect it is clear that we did not fully appreciate the level of supply chain issues Nike would end up facing as the global economy suffered through an inflation crisis. But we remain confident in the company’s long term earnings power. In the most recent quarter, the company generated solid results, but warned shareholders that growth during the coming year may be less than expected.”

NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, NIKE, Inc. (NYSE:NKE) was held by 69 hedge fund portfolios, same as 69 in the previous quarter, according to our database.

We previously discussed NIKE, Inc. (NYSE:NKE) in another article, where we shared the list of best high-volume stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• Latest Insider Selling in April 2024: 10 Stocks to Watch
• Jim Cramer is Recommending These 10 Stocks in April
• 16 Best Dividend Stocks of All Time

Disclosure: None. This article is originally published at Insider Monkey.