Kontoor Brands' (KTB) "Buy" Rating Reaffirmed at BTIG Research

Key Points

• BTIG Research reaffirmed its “buy” rating on Kontoor Brands and set a $105 price target, implying 55.54% upside from the prior close.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and average price target of $95; UBS, Wells Fargo and Barclays recently raised their targets.
• Kontoor’s latest quarterly results slightly exceeded EPS expectations, though revenue fell 11.2% year over year. CEO Scott Baxter also sold approximately $15.4 million of company stock, reducing his position by 41.33%.

Kontoor Brands (NYSE:KTB - Get Free Report)'s stock had its "buy" rating reaffirmed by research analysts at BTIG Research in a research note issued to investors on Tuesday, Benzinga reports. They presently have a $105.00 target price on the stock. BTIG Research's target price points to a potential upside of 55.54% from the stock's previous close.

Several other brokerages also recently weighed in on KTB. Barclays lifted their price target on shares of Kontoor Brands from $96.00 to $99.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. UBS Group increased their price objective on shares of Kontoor Brands from $131.00 to $136.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Zacks Research upgraded shares of Kontoor Brands from a "strong sell" rating to a "hold" rating in a research report on Thursday, July 9th. Wells Fargo & Company lifted their target price on shares of Kontoor Brands from $100.00 to $110.00 and gave the company an "overweight" rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings downgraded shares of Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $95.00.

Kontoor Brands Stock Performance

Shares of KTB opened at $67.51 on Tuesday. The business has a 50-day simple moving average of $80.23 and a two-hundred day simple moving average of $75.29. The company has a quick ratio of 0.99, a current ratio of 1.83 and a debt-to-equity ratio of 1.82. Kontoor Brands has a 52 week low of $56.19 and a 52 week high of $88.96. The stock has a market cap of $3.69 billion, a price-to-earnings ratio of 14.09 and a beta of 0.87.

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

Insider Activity at Kontoor Brands

In other news, CEO Scott Baxter sold 184,403 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $83.40, for a total transaction of $15,379,210.20. Following the sale, the chief executive officer directly owned 261,786 shares of the company's stock, valued at $21,832,952.40. This represents a 41.33% 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 Doerr, Jr. sold 7,660 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $83.43, for a total value of $639,073.80. Following 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 ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kontoor Brands

Hedge funds have recently bought and sold shares of the business. AMG National Trust Bank bought a new stake in shares of Kontoor Brands during the 2nd quarter worth approximately $8,877,000. Squarepoint Ops LLC bought a new position in Kontoor Brands in the 2nd quarter valued at $7,495,000. BI Asset Management Fondsmaeglerselskab A S bought a new position in Kontoor Brands in the 1st quarter valued at $1,918,000. BlackRock Inc. purchased a new stake in Kontoor Brands in the second quarter worth $674,664,000. Finally, Fifth Third Bancorp increased its stake in Kontoor Brands by 5,635.9% in the first quarter. Fifth Third Bancorp now owns 82,826 shares of the company's stock worth $5,822,000 after purchasing an additional 81,382 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 NYSE: KTB is a global lifestyle apparel company that designs, manufactures, sources and markets branded clothing and accessories. The company is best known for its denim and casualwear businesses, serving consumers through wholesale distributors, department and specialty stores, company-operated retail locations and e-commerce channels.

Kontoor's principal brands include Wrangler, a heritage brand focused on denim, westernwear, workwear and casual apparel, and Lee, which offers denim and lifestyle clothing for men, women and children.

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