Kontoor Brands (NYSE:KTB) Trading Down 4.1% – What’s Next?

Kontoor Brands, Inc. (NYSE:KTB)’s stock price traded down 4.1% during mid-day trading on Tuesday . The stock traded as low as $80.15 and last traded at $79.83. 172,754 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 805,211 shares. The stock had previously closed at $83.23.

Analyst Ratings Changes

Several brokerages recently issued reports on KTB. UBS Group lifted their target price on Kontoor Brands from $131.00 to $136.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Barclays upped their price objective on Kontoor Brands from $96.00 to $99.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Zacks Research raised shares of Kontoor Brands from a “strong sell” rating to a “hold” rating in a research report on Thursday, July 9th. Wall Street Zen lowered Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Wells Fargo & Company raised their price target on shares of Kontoor Brands from $100.00 to $110.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $95.00.

Kontoor Brands Trading Down 4.2%

The company has a debt-to-equity ratio of 1.82, a quick ratio of 0.99 and a current ratio of 1.83. The stock has a market capitalization of $4.36 billion, a P/E ratio of 16.61 and a beta of 0.88. The stock has a 50-day moving average price of $82.59 and a two-hundred day moving average price of $74.69.

Kontoor Brands (NYSE:KTB) last announced its quarterly earnings results on Wednesday, August 12th. The company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.01. Kontoor Brands had a net margin of 8.21% and a return on equity of 59.71%. The company had revenue of $584.29 million for the quarter, compared to analysts’ expectations of $586.95 million. During the same quarter in the previous year, the company earned $1.33 earnings per share. Kontoor Brands’s quarterly revenue was down 11.2% on a year-over-year basis. Kontoor Brands has set its FY 2026 guidance at 5.250-5.350 EPS. On average, research analysts forecast that Kontoor Brands, Inc. will post 5.27 EPS for the current fiscal year.

Kontoor Brands Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, September 8th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 8th. Kontoor Brands’s payout ratio is currently 44.26%.

Insiders Place Their Bets

In related news, EVP Jennifer H. Broyles sold 4,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $81.02, for a total value of $324,080.00. Following the completion of the transaction, the executive vice president directly owned 40,261 shares in the company, valued at $3,261,946.22. The trade was a 9.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Thomas L. Doerr, Jr. sold 7,660 shares of the business’s stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $83.43, for a total value of $639,073.80. Following the completion of the transaction, the executive vice president owned 25,063 shares of the company’s stock, valued at $2,091,006.09. This represents a 23.41% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 196,063 shares of company stock valued at $16,342,364. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of KTB. BlackRock Inc. bought a new stake in shares of Kontoor Brands during the 2nd quarter valued at $674,664,000. California State Teachers Retirement System boosted its position in shares of Kontoor Brands by 7,983.2% during the second quarter. California State Teachers Retirement System now owns 4,938,728 shares of the company’s stock worth $411,594,000 after acquiring an additional 4,877,629 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Kontoor Brands by 15.8% in 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 raised its holdings in shares of Kontoor Brands by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 1,419,700 shares of the company’s stock worth $86,741,000 after acquiring an additional 13,725 shares in the last quarter. Finally, Morgan Stanley boosted its position in shares of Kontoor Brands by 8.8% during the 4th quarter. Morgan Stanley now owns 1,283,592 shares of the company’s stock valued at $78,415,000 after acquiring an additional 104,296 shares during the last quarter. Institutional investors own 93.06% of the company’s stock.

About Kontoor Brands

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.