UBS Group AG Buys 20,270 Shares of Kontoor Brands, Inc. $KTB

Key Points

• UBS Group AG increased its stake in Kontoor Brands by 3.8% in the fourth quarter, buying 20,270 shares and bringing its total holding to 551,758 shares worth about $33.7 million.
• Analyst sentiment is generally positive, with Kontoor Brands carrying a consensus rating of “Moderate Buy” and an average price target of $91, though some firms recently adjusted ratings and targets.
• Kontoor’s latest results and outlook were mixed but encouraging: Q1 adjusted earnings beat expectations and the company raised full-year guidance, but revenue missed estimates even as sales jumped 45% year over year. Management also announced a planned Lee brand divestiture and a $750 million share buyback program.

UBS Group AG boosted its stake in Kontoor Brands, Inc. (NYSE:KTB - Free Report) by 3.8% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 551,758 shares of the company's stock after acquiring an additional 20,270 shares during the quarter. UBS Group AG owned 0.99% of Kontoor Brands worth $33,707,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the stock. JPMorgan Chase & Co. lifted its position in Kontoor Brands by 2.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 2,606,199 shares of the company's stock valued at $207,897,000 after acquiring an additional 53,107 shares in the last quarter. Capital World Investors lifted its position in Kontoor Brands by 8.5% in the 3rd quarter. Capital World Investors now owns 1,276,410 shares of the company's stock valued at $101,819,000 after acquiring an additional 100,000 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Kontoor Brands by 0.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,246,646 shares of the company's stock valued at $99,440,000 after acquiring an additional 8,834 shares in the last quarter. Man Group plc lifted its position in Kontoor Brands by 23.7% in the 2nd quarter. Man Group plc now owns 765,512 shares of the company's stock valued at $50,501,000 after acquiring an additional 146,858 shares in the last quarter. Finally, Wellington Management Group LLP lifted its position in Kontoor Brands by 2.7% in the 3rd quarter. Wellington Management Group LLP now owns 609,624 shares of the company's stock valued at $48,630,000 after acquiring an additional 16,180 shares in the last quarter. 93.06% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms recently commented on KTB. BTIG Research reaffirmed a "buy" rating and issued a $100.00 price objective on shares of Kontoor Brands in a research report on Friday, May 1st. Wall Street Zen cut shares of Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research report on Saturday. Zacks Research raised shares of Kontoor Brands from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 16th. Barclays boosted their price target on shares of Kontoor Brands from $74.00 to $93.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 4th. Finally, Jefferies Financial Group started coverage on shares of Kontoor Brands in a research note on Wednesday, February 4th. They set a "hold" rating and a $65.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $91.00.

Trending Headlines about Kontoor Brands

Here are the key news stories impacting Kontoor Brands this week:

• Positive Sentiment: Kontoor reported stronger-than-expected Q1 adjusted earnings and raised its full-year outlook, signaling improving profitability and confidence in the business. Business Wire article
• Positive Sentiment: The company said revenue rose 45% year over year, helped by strong Helly Hansen performance and Wrangler market-share gains, which suggests core brand momentum. Business Wire article
• Positive Sentiment: Management announced a planned divestiture of the Lee brand and a $750 million share repurchase program, moves that could streamline the portfolio and support shareholder returns. Business Wire article
• Neutral Sentiment: Some early coverage emphasized that quarterly revenue missed Wall Street estimates even though earnings beat expectations, which may be limiting enthusiasm. Zacks article

Kontoor Brands Price Performance

NYSE:KTB opened at $73.47 on Friday. The stock has a market capitalization of $4.06 billion, a PE ratio of 14.87 and a beta of 0.91. Kontoor Brands, Inc. has a 1-year low of $53.55 and a 1-year high of $87.00. The firm has a fifty day simple moving average of $71.26 and a 200 day simple moving average of $69.29. The company has a current ratio of 1.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.83.

Kontoor Brands (NYSE:KTB - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $1.06 earnings per share for the quarter, missing analysts' consensus estimates of $1.17 by ($0.11). The firm had revenue of $613.32 million for the quarter, compared to analyst estimates of $784.76 million. Kontoor Brands had a return on equity of 55.20% and a net margin of 8.81%.Kontoor Brands's quarterly revenue was up 45.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.20 earnings per share. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. On average, research analysts expect that Kontoor Brands, Inc. will post 6.65 EPS for the current fiscal year.

Kontoor Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Monday, June 8th will be paid a dividend of $0.53 per share. The ex-dividend date is Monday, June 8th. This represents a $2.12 annualized dividend and a dividend yield of 2.9%. Kontoor Brands's payout ratio is currently 42.91%.

Kontoor Brands 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.

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