Kohl's (NYSE:KSS) Trading Down 7% - Here's What Happened

Key Points

• Kohl’s shares fell 7% to about $17.53, with trading volume significantly below its average. The decline came despite the company recently exceeding quarterly EPS and revenue expectations.
• Analyst sentiment remains cautious: Kohl’s has an average “Reduce” rating, with one Buy, nine Hold, and six Sell ratings, and a consensus price target of $15.46.
• The company declared a quarterly dividend of $0.125 per share, equivalent to a $0.50 annual payout and a 2.9% yield. Institutional investors own 98.04% of Kohl’s stock, while an executive recently sold shares under a pre-arranged trading plan.

Kohl's Corporation (NYSE:KSS - Get Free Report)'s share price dropped 7% on Thursday . The company traded as low as $17.71 and last traded at $17.5260. 904,457 shares traded hands during trading, a decline of 80% from the average daily volume of 4,522,326 shares. The stock had previously closed at $18.84.

Wall Street Analyst Weigh In

KSS has been the topic of several recent analyst reports. Bank of America lowered their target price on shares of Kohl's from $15.00 to $14.00 and set an "underperform" rating on the stock in a research note on Friday, May 29th. TD Cowen upped their price target on shares of Kohl's from $13.50 to $16.00 and gave the stock a "hold" rating in a report on Monday, June 8th. Citigroup upgraded Kohl's from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $14.00 to $22.00 in a research report on Monday, June 1st. Zacks Research lowered Kohl's from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Finally, Weiss Ratings upgraded Kohl's from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and six have issued a Sell rating to the company. According to MarketBeat, Kohl's currently has an average rating of "Reduce" and a consensus price target of $15.46.

Kohl's Price Performance

The business's 50 day moving average is $18.16 and its two-hundred day moving average is $16.03. The firm has a market capitalization of $1.95 billion, a PE ratio of 7.30 and a beta of 1.40. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.48 and a quick ratio of 0.31.

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. The business had revenue of $3.17 billion during the quarter, compared to analysts' expectations of $2.99 billion. Kohl's had a net margin of 1.76% and a return on equity of 4.67%. The business's quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.13) EPS. Kohl's has set its FY 2026 guidance at 1.000-1.600 EPS. As a group, research analysts anticipate that Kohl's Corporation will post 1.36 EPS for the current year.

Kohl's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 23rd. Investors of record on Wednesday, September 9th will be given a $0.125 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $0.50 annualized dividend and a yield of 2.9%. Kohl's's payout ratio is 21.19%.

Insider Transactions at Kohl's

In related news, EVP Jennifer J. Kent sold 22,942 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $20.00, for a total value of $458,840.00. Following the transaction, the executive vice president owned 234,452 shares of the company's stock, valued at $4,689,040. This represents a 8.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.55% of the company's stock.

Institutional Investors Weigh In On Kohl's

Several hedge funds have recently added to or reduced their stakes in KSS. Fuller & Thaler Asset Management Inc. purchased a new stake in Kohl's in the fourth quarter worth approximately $49,796,000. Wells Fargo & Company MN raised its stake in shares of Kohl's by 118.0% during the fourth quarter. Wells Fargo & Company MN now owns 211,640 shares of the company's stock worth $4,320,000 after acquiring an additional 1,388,707 shares in the last quarter. Renaissance Technologies LLC bought a new stake in shares of Kohl's in the 4th quarter worth approximately $26,343,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Kohl's by 107.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,479,061 shares of the company's stock worth $31,980,000 after acquiring an additional 1,286,710 shares during the last quarter. Finally, Hancock Whitney Corp purchased a new stake in shares of Kohl's in the 3rd quarter valued at $17,125,000. Institutional investors own 98.04% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source