Kontoor Brands (NYSE:KTB) Reaches New 12-Month High - What's Next?

Key Points

• Kontoor Brands shares hit a new 52-week high during Friday trading, reaching as high as $88.96 as investors pushed the stock above its previous close of $87.79.
• Analyst sentiment is mixed but generally constructive: the stock carries a Moderate Buy consensus with a $91.20 average target, while Barclays and JPMorgan both have overweight ratings and higher price objectives.
• The company recently missed quarterly earnings and revenue estimates, though revenue still rose 45% year over year; it also pays a quarterly dividend of $0.53, or $2.12 annually, for a 2.4% yield.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $88.96 and last traded at $87.9820, with a volume of 81413 shares trading hands. The stock had previously closed at $87.79.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Wall Street Zen downgraded Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. Barclays increased their price target on Kontoor Brands from $93.00 to $96.00 and gave the company an "overweight" rating in a research note on Monday, May 11th. Weiss Ratings downgraded Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, June 15th. JPMorgan Chase & Co. started coverage on shares of Kontoor Brands in a research report on Monday, June 8th. They set an "overweight" rating and a $90.00 price objective for the company. Finally, Zacks Research upgraded shares of Kontoor Brands from a "strong sell" rating to a "hold" rating in a report on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $91.20.

Kontoor Brands Stock Performance

The firm has a market capitalization of $4.81 billion, a price-to-earnings ratio of 17.61 and a beta of 0.87. The company has a fifty day moving average of $76.00 and a two-hundred day moving average of $70.36. The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.10 and a current ratio of 1.87.

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

Kontoor Brands Dividend Announcement

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 $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Monday, June 8th. Kontoor Brands's payout ratio is presently 42.91%.

Insider Activity at Kontoor Brands

In related news, EVP Jennifer H. Broyles sold 4,000 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $81.02, for a total transaction of $324,080.00. Following the transaction, the executive vice president directly 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.80% of the company's stock.

Institutional Trading of Kontoor Brands

Several hedge funds and other institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC grew its position in shares of Kontoor Brands by 7.2% during the 2nd quarter. GAMMA Investing LLC now owns 1,991 shares of the company's stock worth $166,000 after purchasing an additional 134 shares in the last quarter. Parkside Financial Bank & Trust increased its holdings in shares of Kontoor Brands by 12.3% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,436 shares of the company's stock worth $88,000 after purchasing an additional 157 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of Kontoor Brands by 9.9% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,795 shares of the company's stock valued at $110,000 after buying an additional 162 shares in the last quarter. Bank of Montreal Can raised its position in shares of Kontoor Brands by 1.8% in the fourth quarter. Bank of Montreal Can now owns 9,297 shares of the company's stock valued at $568,000 after buying an additional 164 shares in the last quarter. Finally, Stifel Financial Corp raised its position in shares of Kontoor Brands by 0.8% in the fourth quarter. Stifel Financial Corp now owns 24,710 shares of the company's stock valued at $1,510,000 after buying an additional 199 shares in the last quarter. Institutional investors and hedge funds own 93.06% of the company's stock.

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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