Nike (NKE) stock inched up on Friday morning after the footwear giant announced its second round of layoffs, affecting roughly 1,400 employees as part of its restructuring plan.
At its intraday peak, NKE looked headed to challenge its 20-day moving average (MA), indicating potential for accelerated bullish momentum ahead.
Versus its year-to-date high, however, Nike stock remains down more than 30% at writing.
What These Layoffs Really Mean for Nike Stock
Nike’s decision to eliminate 1,400 roles (primarily tech and global operations) is decisively bullish for investors focused on long-term efficiency.
By cutting nearly 2% of its global workforce, NKE is actively dismantling the internal complexity that has hampered its responsiveness to shifting consumer trends.
The layoffs reinforce management’s commitment to prioritizing margin expansion over growth at any cost, clearing the path to reinvest in product innovation and direct-to-consumer scaling.
Note that NKE shares currently pay a rather lucrative 3.66% dividend yield, which makes them even more attractive to own in 2026.
Insider Activity Warrants Owning NKE Shares
Strengthening the narrative is Nike’s price-to-sales (P/S) multiple, which currently sits at a historically low 1.46x, offering an attractive entry point into a global powerhouse.
More importantly, insiders, including CEO Elliott Hill, have been loading up on NKE stock this month, suggesting those closest to the business believe the market is underappreciating its turnaround potential.
In the latest earnings release, the chief executive acknowledged there’s still room for improvement, but said: “Our foundation is already getting stronger to build the future of Nike.”
And the data backs it up; NKE saw its earnings and revenue come in at $0.35 per share and $11.28 billion in its recently concluded quarter, handily above Street estimates.
Nike Remains Buy-Rated Among Wall Street Firms
While NKE stock has been a disappointment in 2026, Wall Street firms haven’t thrown in the towel yet.
According to Barchart, the consensus rating on Nike remains at a “Moderate Buy,” with the mean price target of $61.57 indicating potential upside of more than 35% from current levels.
This shows analysts continue to believe in the company’s turnaround story and recommend owning it at current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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