Hsbc Holdings PLC Raises Stake in Kohl's Corporation $KSS

Key Points

• HSBC Holdings PLC sharply increased its stake in Kohl’s, boosting its position by 1,497.7% in the fourth quarter to 1,141,932 shares, worth about $23.4 million.
• Kohl’s recently beat earnings expectations, reporting EPS of -$0.13 versus the expected -$0.18 and revenue of $3.17 billion versus the $2.99 billion forecast.
• Despite the earnings beat, Wall Street sentiment remains cautious: analysts’ consensus rating is “Reduce” with an average target price of $15.31, though Kohl’s still pays a quarterly dividend yielding about 3.0%.

Hsbc Holdings PLC grew its position in Kohl's Corporation (NYSE:KSS - Free Report) by 1,497.7% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,141,932 shares of the company's stock after purchasing an additional 1,070,457 shares during the quarter. Hsbc Holdings PLC owned approximately 1.02% of Kohl's worth $23,406,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. ProShare Advisors LLC boosted its holdings in Kohl's by 3.1% in the 4th quarter. ProShare Advisors LLC now owns 21,237 shares of the company's stock worth $433,000 after buying an additional 631 shares during the period. State of Alaska Department of Revenue raised its holdings in Kohl's by 1.1% during the fourth quarter. State of Alaska Department of Revenue now owns 57,016 shares of the company's stock valued at $1,163,000 after acquiring an additional 639 shares during the period. Guggenheim Capital LLC raised its holdings in Kohl's by 1.0% during the fourth quarter. Guggenheim Capital LLC now owns 78,098 shares of the company's stock valued at $1,594,000 after acquiring an additional 774 shares during the period. GAMMA Investing LLC lifted its position in shares of Kohl's by 1.6% in the fourth quarter. GAMMA Investing LLC now owns 50,271 shares of the company's stock valued at $1,026,000 after acquiring an additional 785 shares in the last quarter. Finally, Sei Investments Co. lifted its position in shares of Kohl's by 2.9% in the third quarter. Sei Investments Co. now owns 30,638 shares of the company's stock valued at $471,000 after acquiring an additional 868 shares in the last quarter. 98.04% of the stock is owned by hedge funds and other institutional investors.

Kohl's Stock Performance

NYSE:KSS opened at $16.91 on Tuesday. The stock's fifty day moving average is $15.40 and its 200 day moving average is $16.42. The firm has a market capitalization of $1.92 billion, a PE ratio of 7.17 and a beta of 1.40. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.31 and a current ratio of 1.48. Kohl's Corporation has a fifty-two week low of $8.88 and a fifty-two week high of $25.22.

Kohl's (NYSE:KSS - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.18) by $0.05. Kohl's had a net margin of 1.76% and a return on equity of 4.67%. The firm had revenue of $3.17 billion during the quarter, compared to analysts' expectations of $2.99 billion. During the same period in the previous year, the company earned ($0.13) EPS. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. Kohl's has set its FY 2026 guidance at 1.000-1.600 EPS. On average, sell-side analysts anticipate that Kohl's Corporation will post 1.38 earnings per share for the current year.

Kohl's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 24th. Investors of record on Wednesday, June 10th were paid a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Wednesday, June 10th. Kohl's's dividend payout ratio (DPR) is currently 21.19%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Robert W. Baird cut their target price on Kohl's from $24.00 to $20.00 and set a "neutral" rating for the company in a research report on Wednesday, March 11th. JPMorgan Chase & Co. lowered their price target on Kohl's from $22.00 to $15.00 and set an "underweight" rating on the stock in a report on Tuesday, March 10th. Zacks Research downgraded Kohl's from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Morgan Stanley reaffirmed an "underweight" rating and set a $15.00 price objective on shares of Kohl's in a report on Monday. Finally, TD Cowen lifted their price objective on shares of Kohl's from $13.50 to $16.00 and gave the company a "hold" rating in a research report on Monday, June 8th. One investment analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and seven have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $15.31.

Kohl's Company Profile

Kohl's Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl's has focused on broadening its product assortment and enhancing the in-store and online shopping experience.

The retailer's merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.

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