Kontoor Brands (NYSE:KTB) Shares Down 7.1% – Here’s What Happened

Kontoor Brands, Inc. (NYSE:KTB) traded down 7.1% during mid-day trading on Monday . The stock traded as low as $68.87 and last traded at $68.3850. 146,954 shares changed hands during trading, a decline of 82% from the average session volume of 801,991 shares. The stock had previously closed at $73.65.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Stifel Nicolaus boosted their target price on Kontoor Brands from $75.00 to $80.00 and gave the stock a “hold” rating in a research report on Tuesday, March 3rd. UBS Group upped their price target on Kontoor Brands from $118.00 to $131.00 and gave the stock a “buy” rating in a report on Wednesday, March 4th. Zacks Research upgraded Kontoor Brands from a “hold” rating to a “strong-buy” rating in a research report on Thursday, April 16th. Wells Fargo & Company boosted their target price on Kontoor Brands from $95.00 to $100.00 and gave the stock an “overweight” rating in a research report on Wednesday, March 4th. Finally, Jefferies Financial Group initiated coverage on Kontoor Brands in a research report on Wednesday, February 4th. They set a “hold” rating and a $65.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $91.33.

Kontoor Brands Stock Performance

The company has a quick ratio of 1.10, a current ratio of 1.87 and a debt-to-equity ratio of 1.83. The stock has a fifty day moving average price of $71.26 and a two-hundred day moving average price of $69.29. The company has a market capitalization of $3.78 billion, a price-to-earnings ratio of 13.86 and a beta of 0.91.

Kontoor Brands (NYSE:KTB) last issued its quarterly earnings data on Thursday, May 7th. The company reported $1.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.11). Kontoor Brands had a net margin of 8.81% and a return on equity of 55.20%. The company had revenue of $613.32 million during the quarter, compared to analysts’ expectations of $784.76 million. During the same quarter in the prior year, the company earned $1.20 earnings per share. The firm’s revenue was up 45.0% compared to the same quarter last year. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. As a group, analysts forecast that Kontoor Brands, Inc. will post 6.65 EPS for the current fiscal year.

Kontoor Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Monday, June 8th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Monday, June 8th. Kontoor Brands’s dividend payout ratio is currently 42.91%.

Institutional Investors Weigh In On Kontoor Brands

Several hedge funds have recently made changes to their positions in the business. JPMorgan Chase & Co. boosted its holdings in shares of Kontoor Brands by 15.8% during the fourth quarter. JPMorgan Chase & Co. now owns 3,019,204 shares of the company’s stock worth $184,443,000 after purchasing an additional 413,005 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Kontoor Brands by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 1,419,700 shares of the company’s stock worth $86,741,000 after purchasing an additional 13,725 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Kontoor Brands by 8.8% during the fourth quarter. Morgan Stanley now owns 1,283,592 shares of the company’s stock worth $78,415,000 after purchasing an additional 104,296 shares during the last quarter. Capital World Investors boosted its holdings in shares of Kontoor Brands by 8.5% during the third quarter. Capital World Investors now owns 1,276,410 shares of the company’s stock worth $101,819,000 after purchasing an additional 100,000 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Kontoor Brands by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,268,336 shares of the company’s stock worth $89,132,000 after purchasing an additional 6,477 shares during the last quarter. Institutional investors and hedge funds own 93.06% of the company’s stock.

Kontoor Brands Company Profile

Kontoor Brands, Inc is a global apparel company best known for its Wrangler and Lee denim and lifestyle brands. Established as an independent, publicly traded company in May 2019 following a spin-off from VF Corporation, Kontoor leverages a legacy that dates back to 1889 with the founding of Lee and to 1947 with the introduction of the Wrangler brand. The company focuses on designing, manufacturing and distributing premium, casual and workwear apparel, including jeans, pants, shorts, shirts, jackets and complementary accessories.

Kontoor Brands operates a diversified sales model that combines wholesale partnerships with leading retailers, distribution through e-commerce channels and select direct-to-consumer formats.