Kontoor Brands (NYSE:KTB) Trading Down 5% – What’s Next?

Kontoor Brands, Inc. (NYSE:KTB)’s share price fell 5% on Wednesday . The company traded as low as $71.07 and last traded at $70.91. Approximately 394,469 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 796,964 shares. The stock had previously closed at $74.64.

Analyst Ratings Changes

KTB has been the subject of several recent research reports. Wall Street Zen cut Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research report on Saturday, May 9th. JPMorgan Chase & Co. upped their price target on Kontoor Brands from $90.00 to $105.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. BTIG Research raised their price objective on shares of Kontoor Brands from $100.00 to $105.00 and gave the company a “buy” rating in a research report on Friday, August 14th. Zacks Research upgraded shares of Kontoor Brands from a “strong sell” rating to a “hold” rating in a research note on Thursday, July 9th. Finally, Barclays boosted their price target on shares of Kontoor Brands from $96.00 to $99.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $95.00.

Kontoor Brands Trading Down 4.6%

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 company’s fifty day simple moving average is $82.56 and its 200-day simple moving average is $75.12. The company has a market capitalization of $3.89 billion, a P/E ratio of 14.88 and a beta of 0.88.

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

Kontoor Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Tuesday, September 8th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Tuesday, September 8th. Kontoor Brands’s payout ratio is 44.26%.

Insider Buying and Selling

In other news, EVP Jennifer H. Broyles sold 4,000 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $81.02, for a total transaction of $324,080.00. Following the sale, the executive vice president directly owned 40,261 shares of the company’s stock, valued at $3,261,946.22. The trade was a 9.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Scott H. Baxter sold 184,403 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $83.40, for a total value of $15,379,210.20. Following the completion of the transaction, the chief executive officer directly owned 261,786 shares in the company, valued at $21,832,952.40. This represents a 41.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 196,063 shares of company stock worth $16,342,364 in the last ninety days. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Kontoor Brands

Large investors have recently bought and sold shares of the company. Global Retirement Partners LLC purchased a new position in Kontoor Brands during the 2nd quarter worth approximately $26,000. Transamerica Financial Advisors LLC lifted its stake in Kontoor Brands by 335.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 405 shares of the company’s stock valued at $25,000 after acquiring an additional 312 shares during the period. CENTRAL TRUST Co purchased a new stake in shares of Kontoor Brands in the 1st quarter valued at $35,000. Bell Investment Advisors Inc purchased a new stake in shares of Kontoor Brands in the 2nd quarter valued at $42,000. Finally, Hantz Financial Services Inc. increased its stake in shares of Kontoor Brands by 196.2% in the fourth quarter. Hantz Financial Services Inc. now owns 551 shares of the company’s stock worth $34,000 after acquiring an additional 365 shares during the period. Hedge funds and other 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.