Kohl's (NYSE:KSS) Shares Gap Up on Earnings Beat

Key Points

• Kohl's stock gapped up from $13.04 to $16.46 after reporting earnings per share of $0.56, surpassing analyst expectations of $0.33.
• The company announced a quarterly dividend of $0.125 per share, with a 3.2% yield and a payout ratio of 45.87%.
• Research firms have mixed ratings on Kohl’s stock, with nine analysts rating it as “Hold” and six as “Sell,” leading to an average target price of $9.89.

Kohl's Corporation (NYSE:KSS - Get Free Report)'s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.04, but opened at $16.46. Kohl's shares last traded at $15.75, with a volume of 21,021,342 shares changing hands.

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 net margin of 0.75% and a return on equity of 4.71%. During the same period in the previous year, the business posted $0.59 EPS. The business's revenue 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.

Kohl's Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 24th. Shareholders of record on Wednesday, September 10th will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Wednesday, September 10th. This represents a $0.50 annualized dividend and a dividend yield of 3.2%. Kohl's's dividend payout ratio (DPR) is currently 45.87%.

Analyst Upgrades and Downgrades

Several research firms have commented on KSS. Robert W. Baird lifted their target price on shares of Kohl's from $8.00 to $9.00 and gave the stock a "neutral" rating in a research report on Friday, May 30th. Telsey Advisory Group reissued a "market perform" rating and set a $9.00 target price on shares of Kohl's in a research report on Thursday, August 21st. Wall Street Zen cut shares of Kohl's from a "hold" rating to a "sell" rating in a research report on Sunday. Barclays lifted their target price on shares of Kohl's from $4.00 to $5.00 and gave the stock an "underweight" rating in a research report on Friday, May 30th. Finally, Evercore ISI dropped their target price on shares of Kohl's from $9.00 to $8.00 and set an "in-line" rating on the stock in a research report on Friday, May 2nd. Nine research analysts have rated the stock with a Hold rating and six have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $9.89.

Institutional Investors Weigh In On Kohl's

Large investors have recently modified their holdings of the stock. National Bank of Canada FI purchased a new position in Kohl's in the 1st quarter valued at approximately $25,000. Smartleaf Asset Management LLC grew its stake in Kohl's by 161.8% in the 1st quarter. Smartleaf Asset Management LLC now owns 3,053 shares of the company's stock valued at $26,000 after buying an additional 1,887 shares in the last quarter. CWM LLC grew its stake in Kohl's by 49.7% in the 1st quarter. CWM LLC now owns 4,177 shares of the company's stock valued at $34,000 after buying an additional 1,386 shares in the last quarter. State of Wyoming purchased a new position in Kohl's in the 4th 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. Hedge funds and other institutional investors own 98.04% of the company's stock.

Kohl's Price Performance

The firm has a market capitalization of $1.75 billion, a PE ratio of 14.31 and a beta of 1.73. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.14 and a current ratio of 1.09. The business's 50 day moving average is $10.92 and its two-hundred day moving average is $9.44.

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.

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