Kohl's (NYSE:KSS) Shares Gap Up on Analyst Upgrade

Key Points

• Kohl's shares spiked before the market opened after Citigroup raised its price target from $16.00 to $19.00, with the stock opening at $17.99 after a previous close of $17.38.
• The retailer's recent earnings report beat estimates with an EPS of $0.56, although revenue declined 5% year-over-year to $3.35 billion, below analyst forecasts.
• Kohl's announced a quarterly dividend of $0.125 per share, representing an annualized payout of $0.50 and a yield of 2.8%, with a payout ratio of 27.03%.

Kohl's Corporation (NYSE:KSS - Get Free Report)'s share price gapped up prior to trading on Friday after Citigroup raised their price target on the stock from $16.00 to $19.00. The stock had previously closed at $17.38, but opened at $17.99. Citigroup currently has a neutral rating on the stock. Kohl's shares last traded at $17.57, with a volume of 1,669,913 shares traded.

KSS has been the topic of several other reports. The Goldman Sachs Group lifted their price objective on Kohl's from $7.00 to $11.00 and gave the company a "sell" rating in a research report on Thursday, August 28th. Robert W. Baird increased their price objective on shares of Kohl's from $9.00 to $15.00 and gave the company a "neutral" rating in a research report on Thursday, August 28th. Cowen reiterated a "hold" rating on shares of Kohl's in a research report on Thursday, August 28th. JPMorgan Chase & Co. lifted their target price on Kohl's from $10.00 to $11.00 and gave the company an "underweight" rating in a research note on Thursday, August 28th. Finally, Barclays boosted their price target on shares of Kohl's from $5.00 to $8.00 and gave the stock an "underweight" rating in a research report on Thursday, August 28th. One investment analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $12.75.

Hedge Funds Weigh In On Kohl's

Several large investors have recently made changes to their positions in KSS. National Bank of Canada FI acquired a new position in shares of Kohl's during the 1st quarter worth about $25,000. Smartleaf Asset Management LLC boosted its stake in Kohl's by 161.8% in the first quarter. Smartleaf Asset Management LLC now owns 3,053 shares of the company's stock valued at $26,000 after acquiring an additional 1,887 shares in the last quarter. CWM LLC lifted its holdings in Kohl's by 49.7% in the first quarter. CWM LLC now owns 4,177 shares of the company's stock valued at $34,000 after acquiring an additional 1,386 shares during the period. State of Wyoming acquired a new position in shares of Kohl's in the fourth quarter worth $35,000. Finally, Cheviot Value Management LLC purchased a new position in Kohl's during the first quarter worth approximately $36,000. 98.04% of the stock is currently owned by institutional investors and hedge funds.

Kohl's Price Performance

The company has a quick ratio of 0.19, a current ratio of 1.36 and a debt-to-equity ratio of 1.00. The company has a market cap of $1.90 billion, a PE ratio of 9.17 and a beta of 1.74. The business's 50 day moving average price is $13.59 and its 200-day moving average price is $10.00.

Kohl's (NYSE:KSS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 27th. The company reported $0.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.23. Kohl's had a return on equity of 4.62% and a net margin of 1.31%.The business had revenue of $3.35 billion during the quarter, compared to analyst estimates of $3.37 billion. During the same period in the prior year, the company posted $0.59 EPS. The business's revenue for the quarter was down 5.0% compared to the same quarter last year. Kohl's has set its FY 2025 guidance at 0.500-0.800 EPS. As a group, analysts forecast that Kohl's Corporation will post 1.3 earnings per share for the current year.

Kohl's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 24th. Investors of record on Wednesday, September 10th will be paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 2.9%. The ex-dividend date is Wednesday, September 10th. Kohl's's dividend payout ratio is presently 27.03%.

About Kohl's

Kohl's Corporation operates as an omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang.