Kontoor Brands, Inc. (NYSE:KTB) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Kontoor Brands has an average analyst rating of “Moderate Buy” from 12 brokerages, with a consensus 1-year price target of $91.20.
• Recent analyst actions were mixed: Barclays and JPMorgan remain upbeat with overweight ratings, while Zacks, Weiss Ratings, and Wall Street Zen lowered their views.
• The company reported Q1 earnings and revenue below estimates, but it also pays a quarterly dividend of $0.53 per share, equating to a 2.5% yield.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twelve brokerages that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have given a hold rating, six have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $91.20.

A number of research firms have weighed in on KTB. Zacks Research raised shares of Kontoor Brands from a "strong sell" rating to a "hold" rating in a report on Thursday, July 9th. Barclays increased their target price on shares of Kontoor Brands from $93.00 to $96.00 and gave the stock an "overweight" rating in a research note on Monday, May 11th. Weiss Ratings cut Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, June 15th. Wall Street Zen lowered Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, JPMorgan Chase & Co. began coverage on Kontoor Brands in a report on Monday, June 8th. They issued an "overweight" rating and a $90.00 price target for the company.

Insider Transactions at Kontoor Brands

In related news, EVP Jennifer H. Broyles sold 4,000 shares of Kontoor Brands stock in a transaction on Friday, June 12th. The shares were sold at an average price of $81.02, for a total value of $324,080.00. Following the sale, the executive vice president owned 40,261 shares of the company's stock, valued at approximately $3,261,946.22. This trade represents a 9.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Kontoor Brands

A number of large investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its holdings in shares of Kontoor Brands by 7.2% in the 2nd quarter. GAMMA Investing LLC now owns 1,991 shares of the company's stock valued at $166,000 after purchasing an additional 134 shares during the last quarter. Parkside Financial Bank & Trust boosted its position in shares of Kontoor Brands by 12.3% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,436 shares of the company's stock valued at $88,000 after purchasing an additional 157 shares during the period. EverSource Wealth Advisors LLC grew its stake in Kontoor Brands by 9.9% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,795 shares of the company's stock worth $110,000 after buying an additional 162 shares during the last quarter. Bank of Montreal Can grew its stake in Kontoor Brands by 1.8% during the 4th quarter. Bank of Montreal Can now owns 9,297 shares of the company's stock worth $568,000 after buying an additional 164 shares during the last quarter. Finally, Stifel Financial Corp increased its position in Kontoor Brands by 0.8% during the fourth quarter. Stifel Financial Corp now owns 24,710 shares of the company's stock worth $1,510,000 after buying an additional 199 shares during the period. 93.06% of the stock is currently owned by institutional investors and hedge funds.

Kontoor Brands Stock Down 0.9%

Kontoor Brands stock opened at $84.05 on Wednesday. The business's 50-day moving average price is $75.62 and its 200 day moving average price is $70.04. The company has a quick ratio of 1.10, a current ratio of 1.87 and a debt-to-equity ratio of 1.83. The firm has a market cap of $4.65 billion, a price-to-earnings ratio of 17.01 and a beta of 0.87. Kontoor Brands has a 52 week low of $53.55 and a 52 week high of $88.85.

Kontoor Brands (NYSE:KTB - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $1.06 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.17 by ($0.11). Kontoor Brands had a net margin of 8.30% and a return on equity of 60.17%. The company had revenue of $613.32 million during the quarter, compared to analyst estimates of $784.76 million. During the same period in the previous year, the firm posted $1.20 earnings per share. The company's revenue was up 45.0% compared to the same quarter last year. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. As a group, sell-side analysts anticipate that Kontoor Brands will post 5.2 earnings per share for the current year.

Kontoor Brands Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Monday, June 8th were given a dividend of $0.53 per share. The ex-dividend date was Monday, June 8th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.5%. Kontoor Brands's dividend payout ratio (DPR) is 42.91%.

About Kontoor Brands

Kontoor Brands, Inc is a global apparel company best known for its Wrangler and Lee denim and lifestyle brands. Established as an independent, publicly traded company in May 2019 following a spin-off from VF Corporation, Kontoor leverages a legacy that dates back to 1889 with the founding of Lee and to 1947 with the introduction of the Wrangler brand. The company focuses on designing, manufacturing and distributing premium, casual and workwear apparel, including jeans, pants, shorts, shirts, jackets and complementary accessories.

Kontoor Brands operates a diversified sales model that combines wholesale partnerships with leading retailers, distribution through e-commerce channels and select direct-to-consumer formats.

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