Kontoor Brands (NYSE:KTB) Stock Price Down 8.2% – What’s Next?

Kontoor Brands, Inc. (NYSE:KTB) dropped 8.2% during mid-day trading on Monday . The company traded as low as $69.77 and last traded at $70.00. Approximately 106,749 shares changed hands during trading, a decline of 87% from the average daily volume of 844,610 shares. The stock had previously closed at $76.27.

Analyst Upgrades and Downgrades

A number of research firms have commented on KTB. The Goldman Sachs Group boosted their price target on shares of Kontoor Brands from $84.00 to $95.00 and gave the company a “buy” rating in a research report on Wednesday, March 4th. Jefferies Financial Group initiated coverage on Kontoor Brands in a report on Wednesday, February 4th. They issued a “hold” rating and a $65.00 target price on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kontoor Brands in a report on Monday, December 29th. Barclays lifted their price objective on Kontoor Brands from $74.00 to $93.00 and gave the company an “overweight” rating in a research report on Wednesday, March 4th. Finally, Stifel Nicolaus increased their target price on Kontoor Brands from $75.00 to $80.00 and gave the stock a “hold” rating in a report on Tuesday, March 3rd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Kontoor Brands has an average rating of “Moderate Buy” and a consensus target price of $91.00.

Kontoor Brands Trading Down 5.8%

The company has a current ratio of 1.82, a quick ratio of 0.87 and a debt-to-equity ratio of 2.01. The firm has a market capitalization of $3.97 billion, a P/E ratio of 17.73 and a beta of 1.15. The business has a 50 day moving average of $64.07 and a 200-day moving average of $71.86.

Kontoor Brands (NYSE:KTB) last released its quarterly earnings results on Tuesday, March 3rd. The company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.08. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $975.78 million. Kontoor Brands had a return on equity of 62.02% and a net margin of 7.22%.The company’s revenue for the quarter was up 45.6% on a year-over-year basis. During the same quarter last year, the business posted $1.38 EPS. Kontoor Brands has set its FY 2026 guidance at 6.400-6.500 EPS. Analysts anticipate that Kontoor Brands, Inc. will post 4.82 EPS for the current fiscal year.

Kontoor Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Tuesday, March 10th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, March 10th. Kontoor Brands’s payout ratio is currently 52.35%.

Hedge Funds Weigh In On Kontoor Brands

Hedge funds have recently modified their holdings of the stock. Russell Investments Group Ltd. raised its stake in Kontoor Brands by 22.0% in the second quarter. Russell Investments Group Ltd. now owns 78,834 shares of the company’s stock valued at $5,201,000 after buying an additional 14,191 shares during the period. Allspring Global Investments Holdings LLC increased its position in Kontoor Brands by 31.7% during the third quarter. Allspring Global Investments Holdings LLC now owns 180,422 shares of the company’s stock worth $14,805,000 after acquiring an additional 43,378 shares during the period. Maverick Capital Ltd. raised its position in shares of Kontoor Brands by 82.6% in the second quarter. Maverick Capital Ltd. now owns 52,947 shares of the company’s stock valued at $3,493,000 after buying an additional 23,946 shares in the last quarter. New York State Common Retirement Fund raised its holdings in Kontoor Brands by 89.5% in the 3rd quarter. New York State Common Retirement Fund now owns 32,739 shares of the company’s stock valued at $2,612,000 after acquiring an additional 15,465 shares in the last quarter. Finally, Gabelli Funds LLC bought a new stake in Kontoor Brands during the second quarter worth about $4,922,000. Institutional investors 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.