Kohl's (NYSE:KSS) Trading Down 7.2% on Analyst Downgrade

Key Points

• Kohl’s shares fell about 7% after Bank of America cut its price target on the stock from $15 to $14, adding to broader analyst caution around the retailer.
• The company’s latest quarter beat expectations, with EPS of ($0.13) versus ($0.18) expected and revenue of $3.17 billion versus $2.99 billion projected.
• Kohl’s said comparable sales posted their best growth in four years and reaffirmed its annual targets, suggesting its turnaround and cost-cutting efforts are gaining traction despite mixed Wall Street sentiment.

Kohl's Corporation (NYSE:KSS - Get Free Report) shares were down 7.2% during trading on Friday after Bank of America lowered their price target on the stock from $15.00 to $14.00. The company traded as low as $14.55 and last traded at $14.4650. Approximately 2,958,291 shares traded hands during trading, a decline of 36% from the average daily volume of 4,653,885 shares. The stock had previously closed at $15.59.

A number of other research analysts have also recently commented on KSS. Wall Street Zen cut Kohl's from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. JPMorgan Chase & Co. cut their price target on Kohl's from $22.00 to $15.00 and set an "underweight" rating on the stock in a research note on Tuesday, March 10th. The Goldman Sachs Group cut their price target on Kohl's from $15.00 to $13.00 and set a "sell" rating on the stock in a research note on Wednesday, March 11th. Zacks Research upgraded Kohl's from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 15th. Finally, TD Cowen cut their price target on Kohl's from $23.00 to $17.00 and set a "hold" rating on the stock in a research note on Wednesday, March 11th. One investment analyst has rated the stock with a Strong 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 has a consensus rating of "Reduce" and a consensus target price of $14.77.

Trending Headlines about Kohl's

Here are the key news stories impacting Kohl's this week:

• Positive Sentiment: Kohl’s reported Q1 EPS of ($0.13), ahead of the expected ($0.18), and revenue of $3.17 billion versus estimates of $2.99 billion. Kohl's Q1 earnings release and conference call
• Positive Sentiment: The company said comparable sales improved, posting its best comparable-sales growth in four years, which boosted confidence that traffic and demand are stabilizing. Reuters article on Kohl's annual targets and sales trends
• Positive Sentiment: Kohl’s reaffirmed its annual targets, signaling management believes the turnaround and cost-cutting efforts are taking hold. Reuters article on Kohl's annual targets
• Neutral Sentiment: Analyst commentary was mixed, with one firm raising its price target while maintaining a sell rating and another lowering its target, showing Wall Street remains cautious despite the earnings beat. UBS price target update Bank of America price target update
• Negative Sentiment: Despite the earnings beat, revenue still declined year over year and the company’s FY2026 profit guidance came in below some expectations, limiting the upside case. Seeking Alpha earnings snapshot

Institutional Trading of Kohl's

Several institutional investors and hedge funds have recently bought and sold shares of the company. IFP Advisors Inc grew its position in shares of Kohl's by 3,777.6% in the 3rd quarter. IFP Advisors Inc now owns 1,900 shares of the company's stock worth $31,000 after acquiring an additional 1,851 shares in the last quarter. Farther Finance Advisors LLC lifted its position in shares of Kohl's by 233.9% in the 4th quarter. Farther Finance Advisors LLC now owns 1,666 shares of the company's stock worth $34,000 after buying an additional 1,167 shares during the last quarter. iSAM Funds UK Ltd bought a new position in shares of Kohl's in the 3rd quarter worth about $39,000. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in shares of Kohl's by 3,855.1% in the 3rd quarter. Annis Gardner Whiting Capital Advisors LLC now owns 2,729 shares of the company's stock valued at $42,000 after buying an additional 2,660 shares during the period. Finally, Plato Investment Management Ltd acquired a new position in shares of Kohl's in the 4th quarter valued at about $42,000. Institutional investors and hedge funds own 98.04% of the company's stock.

Kohl's Trading Down 7.8%

The firm has a market cap of $1.61 billion, a P/E ratio of 6.08 and a beta of 1.46. The business's 50-day moving average is $13.42 and its two-hundred day moving average is $17.09. The company has a current ratio of 1.46, a quick ratio of 0.37 and a debt-to-equity ratio of 0.94.

Kohl's (NYSE:KSS - Get Free Report) last issued its earnings results on Thursday, May 28th. The company reported ($0.13) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.18) by $0.05. Kohl's had a net margin of 1.75% and a return on equity of 4.72%. The firm had revenue of $3.17 billion for the quarter, compared to analysts' expectations of $2.99 billion. During the same quarter last year, the company posted ($0.13) earnings per share. Kohl's's revenue was down 1.7% on a year-over-year basis. Kohl's has set its FY 2026 guidance at 1.000-1.600 EPS. As a group, analysts expect that Kohl's Corporation will post 1.31 earnings per share for the current fiscal year.

Kohl's Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 24th. Stockholders of record on Wednesday, June 10th will be issued a dividend of $0.125 per share. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a $0.50 annualized dividend and a dividend yield of 3.5%. Kohl's's dividend payout ratio is 21.19%.

About Kohl's

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.

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