Kontoor Brands (NYSE:KTB) Hits New 1-Year High Following Earnings Beat

Shares of Kontoor Brands, Inc. (NYSE:KTB) hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $84.88 and last traded at $83.73, with a volume of 6336 shares. The stock had previously closed at $76.56.

The company reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.25 by $0.12. Kontoor Brands had a return on equity of 72.43% and a net margin of 9.35%. The firm had revenue of $670.19 million during the quarter, compared to analyst estimates of $663.45 million. During the same period in the previous year, the company earned $1.22 EPS. The company’s revenue for the quarter was up 2.4% on a year-over-year basis.

Kontoor Brands Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 19th. Investors of record on Monday, December 9th will be paid a $0.52 dividend. The ex-dividend date is Monday, December 9th. This is a positive change from Kontoor Brands’s previous quarterly dividend of $0.50. This represents a $2.08 dividend on an annualized basis and a yield of 2.55%. Kontoor Brands’s dividend payout ratio (DPR) is presently 46.85%.

Analysts Set New Price Targets

A number of research firms have issued reports on KTB. Stifel Nicolaus cut shares of Kontoor Brands from a “buy” rating to a “hold” rating and upped their price target for the company from $89.00 to $93.00 in a report on Friday. Guggenheim raised their target price on Kontoor Brands from $80.00 to $100.00 and gave the company a “buy” rating in a report on Friday. Barclays upped their price target on Kontoor Brands from $83.00 to $100.00 and gave the stock an “overweight” rating in a report on Friday. UBS Group raised their price objective on shares of Kontoor Brands from $103.00 to $110.00 and gave the stock a “buy” rating in a research note on Friday. Finally, Wells Fargo & Company upped their target price on shares of Kontoor Brands from $80.00 to $90.00 and gave the company an “overweight” rating in a research note on Wednesday, October 23rd. Two analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, Kontoor Brands currently has a consensus rating of “Moderate Buy” and an average target price of $95.00.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Pacer Advisors Inc. lifted its holdings in shares of Kontoor Brands by 10.9% during the 2nd quarter. Pacer Advisors Inc. now owns 2,043,637 shares of the company’s stock worth $135,187,000 after acquiring an additional 201,399 shares during the period. Victory Capital Management Inc. lifted its stake in Kontoor Brands by 1.0% during the second quarter. Victory Capital Management Inc. now owns 1,270,540 shares of the company’s stock worth $84,046,000 after purchasing an additional 12,019 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Kontoor Brands by 5.1% during the second quarter. Dimensional Fund Advisors LP now owns 1,250,293 shares of the company’s stock valued at $82,707,000 after purchasing an additional 60,926 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of Kontoor Brands by 1.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 712,579 shares of the company’s stock valued at $47,137,000 after purchasing an additional 7,526 shares during the period. Finally, Millennium Management LLC raised its holdings in shares of Kontoor Brands by 351.7% in the 2nd quarter. Millennium Management LLC now owns 347,325 shares of the company’s stock worth $22,976,000 after buying an additional 270,427 shares in the last quarter. 93.06% of the stock is owned by institutional investors.

Kontoor Brands Price Performance

The company has a 50-day moving average of $77.81 and a 200 day moving average of $71.34. The company has a debt-to-equity ratio of 2.04, a quick ratio of 1.43 and a current ratio of 2.74. The firm has a market cap of $4.55 billion, a P/E ratio of 18.39, a P/E/G ratio of 1.99 and a beta of 1.20.

Kontoor Brands Company Profile

Kontoor Brands, Inc, a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name.