Kohl's (NYSE:KSS) Shares Gap Up Following 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) 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 trading hands.

Several other brokerages have also recently issued reports on KSS. Telsey Advisory Group lifted their target price on Kohl's from $9.00 to $16.00 and gave the company a "market perform" rating in a research report on Wednesday, August 27th. Cowen reiterated a "hold" rating on shares of Kohl's in a report on Thursday, August 28th. Barclays increased their target price on shares of Kohl's from $5.00 to $8.00 and gave the company an "underweight" rating in a report on Thursday, August 28th. Gordon Haskett raised shares of Kohl's from a "hold" rating to an "accumulate" rating in a research report on Wednesday, August 27th. Finally, Wall Street Zen upgraded Kohl's from a "sell" rating to a "hold" rating in a research note on Monday, September 1st. One analyst has rated the stock with a Buy rating, nine have given a Hold rating and six have assigned a Sell rating to the company. According to data from MarketBeat.com, Kohl's presently has an average rating of "Reduce" and a consensus target price of $12.75.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KSS. National Bank of Canada FI purchased a new stake in Kohl's during the first quarter valued at about $25,000. Smartleaf Asset Management LLC raised its position in shares of 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 purchasing an additional 1,887 shares during the period. CWM LLC raised its position in shares of 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 purchasing an additional 1,386 shares during the period. State of Wyoming bought a new stake in shares of Kohl's in the fourth quarter valued at approximately $35,000. Finally, Cheviot Value Management LLC purchased a new position in Kohl's in the 1st quarter valued at approximately $36,000. Institutional investors own 98.04% of the company's stock.

Kohl's Price Performance

The firm has a market capitalization of $1.96 billion, a PE ratio of 9.44 and a beta of 1.74. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.19 and a current ratio of 1.36. The business's 50 day moving average is $13.73 and its two-hundred day moving average is $10.03.

Kohl's (NYSE:KSS - Get Free Report) last announced its quarterly earnings results on Wednesday, August 27th. The company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.23. Kohl's had a return on equity of 4.62% and a net margin of 1.31%.The firm had revenue of $3.35 billion for the quarter, compared to analysts' expectations of $3.37 billion. During the same period in the prior year, the business posted $0.59 earnings per share. The company's revenue was down 5.0% on a year-over-year basis. Kohl's has set its FY 2025 guidance at 0.500-0.800 EPS. Equities research analysts anticipate that Kohl's Corporation will post 1.3 earnings per share for the current fiscal year.

Kohl's Dividend Announcement

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

Kohl's Company Profile

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.