Kontoor Brands (NYSE:KTB) Stock Jumps 4.8% – Still a Buy?

Kontoor Brands, Inc. (NYSE:KTB) shares traded up 4.8% during mid-day trading on Friday. The stock traded as high as $81.28 and last traded at $81.4570. 60,337 shares were traded during trading, a decline of 92% from the average daily volume of 800,685 shares. The stock had previously closed at $77.76.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Zacks Research raised shares of Kontoor Brands from a “hold” rating to a “strong-buy” rating in a report on Tuesday. Needham & Company LLC began coverage on shares of Kontoor Brands in a report on Friday, October 16th. They set a “hold” rating on the stock. Weiss Ratings downgraded shares of Kontoor Brands from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. BTIG Research reaffirmed a “buy” rating and issued a $105.00 price target on shares of Kontoor Brands in a report on Tuesday, September 15th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Kontoor Brands from $90.00 to $105.00 and gave the company an “overweight” rating in a report on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Kontoor Brands has a consensus rating of “Moderate Buy” and a consensus target price of $95.33.

Kontoor Brands Stock Performance

The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.92 and a current ratio of 1.69. The stock has a 50 day moving average of $70.95 and a 200 day moving average of $73.38. The stock has a market capitalization of $4.39 billion, a P/E ratio of 22.43 and a beta of 0.85.

Kontoor Brands (NYSE:KTB) last posted its earnings results on Thursday, November 5th. The company reported $1.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.34 by $0.16. The company had revenue of $685.35 million for the quarter, compared to analysts’ expectations of $694.18 million. Kontoor Brands had a return on equity of 59.17% and a net margin of 6.51%. The firm’s quarterly revenue was down 19.7% compared to the same quarter last year. During the same period last year, the business posted $1.44 earnings per share. Equities analysts predict that Kontoor Brands, Inc. will post 5.41 EPS for the current year.

Kontoor Brands Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Tuesday, December 8th will be paid a $0.54 dividend. The ex-dividend date is Tuesday, December 8th. This is an increase from Kontoor Brands’s previous quarterly dividend of $0.53. This represents a $2.16 annualized dividend and a dividend yield of 2.7%. Kontoor Brands’s dividend payout ratio (DPR) is 59.05%.

Insider Buying and Selling at Kontoor Brands

In other news, CFO Joseph A. Alkire sold 9,472 shares of the business’s stock in a transaction that occurred on Friday, November 6th. The stock was sold at an average price of $75.92, for a total transaction of $719,114.24. Following the completion of the transaction, the chief financial officer directly owned 44,803 shares in the company, valued at approximately $3,401,443.76. The trade was a 17.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 1.80% of the company’s stock.

Institutional Trading of Kontoor Brands

Large investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC acquired a new position in Kontoor Brands during the 2nd quarter worth $26,000. Eurizon Capital SGR S.p.A. acquired a new position in shares of Kontoor Brands during the third quarter valued at $28,000. Bell Investment Advisors Inc bought a new stake in shares of Kontoor Brands during the second quarter valued at about $42,000. Harbor Investment Advisory LLC bought a new stake in shares of Kontoor Brands during the second quarter valued at about $61,000. Finally, Covestor Ltd raised its stake in shares of Kontoor Brands by 21.5% during the third quarter. Covestor Ltd now owns 943 shares of the company’s stock valued at $59,000 after purchasing an additional 167 shares in the last quarter. 93.06% of the stock is currently owned by institutional investors and hedge funds.

About Kontoor Brands

Kontoor Brands is an apparel company focused on denim and casual clothing. Its portfolio includes Wrangler and Lee, brands known for jeans and other everyday apparel, as well as Rock & Republic. The company sells products such as jeans, shirts, jackets, shorts and related apparel through wholesale partners and direct-to-consumer channels, including its own retail stores and e-commerce operations. Kontoor Brands serves customers in markets around the world. It became an independent public company in 2019 after being spun off from VF Corporation.