Kontoor Brands (NYSE:KTB) Sets New 12-Month High - Here's Why

Key Points

• Kontoor Brands shares hit a new 52-week high, trading as high as $87.42 as investors pushed the stock above its prior close of $85.00.
• Analyst sentiment remains mixed but constructive overall, with a Moderate Buy consensus and an average price target of $91.20, despite some recent downgrades. JPMorgan and Barclays maintained bullish views with overweight ratings and targets near the stock’s current range.
• The company recently reported quarterly earnings that missed estimates on both EPS and revenue, even though revenue rose 45% year over year. Kontoor also pays a quarterly dividend of $0.53, yielding about 2.4% annually.

Shares of Kontoor Brands, Inc. (NYSE:KTB - Get Free Report) hit a new 52-week high during trading on Monday . The company traded as high as $87.42 and last traded at $86.91, with a volume of 560648 shares traded. The stock had previously closed at $85.00.

Analyst Ratings Changes

Several research firms have recently weighed in on KTB. Wall Street Zen cut shares of Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. JPMorgan Chase & Co. assumed coverage on Kontoor Brands in a research report on Monday, June 8th. They issued an "overweight" rating and a $90.00 price objective for the company. Barclays raised their target price on 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 lowered Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, June 15th. Finally, Zacks Research cut Kontoor Brands from a "hold" rating to a "strong sell" rating in a report on Wednesday, June 10th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Kontoor Brands 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 $4.80 billion, a price-to-earnings ratio of 17.59 and a beta of 0.87. The firm has a 50 day moving average price of $73.79 and a 200-day moving average price of $68.96. The company has a debt-to-equity ratio of 1.83, a current ratio of 1.87 and a quick ratio of 1.10.

Kontoor Brands (NYSE:KTB - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $1.06 EPS for the quarter, missing the consensus estimate of $1.17 by ($0.11). The company had revenue of $613.32 million for the quarter, compared to analyst estimates of $784.76 million. Kontoor Brands had a return on equity of 60.17% and a net margin of 8.30%.The company's revenue for the quarter was up 45.0% compared to the same quarter last year. During the same period in the previous 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, sell-side analysts expect that Kontoor Brands, Inc. will post 5.2 earnings per share for the current fiscal year.

Kontoor Brands Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Monday, June 8th were issued a $0.53 dividend. The ex-dividend date of this dividend was Monday, June 8th. This represents a $2.12 annualized dividend and a yield of 2.4%. Kontoor Brands's dividend payout ratio (DPR) is 42.91%.

Insider Transactions at Kontoor Brands

In other Kontoor Brands news, EVP Jennifer H. Broyles sold 4,000 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $81.02, for a total transaction of $324,080.00. Following the completion of the transaction, the executive vice president owned 40,261 shares in the company, valued at $3,261,946.22. The trade was a 9.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kontoor Brands

Several institutional investors have recently modified their holdings of KTB. UBS Group AG raised its position in Kontoor Brands by 3.8% during the 4th quarter. UBS Group AG now owns 551,758 shares of the company's stock worth $33,707,000 after buying an additional 20,270 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in shares of Kontoor Brands by 18.1% in the third quarter. Victory Capital Management Inc. now owns 227,351 shares of the company's stock valued at $18,136,000 after acquiring an additional 34,788 shares in the last quarter. Fieldview Capital Management LLC boosted its holdings in shares of Kontoor Brands by 50.8% in the third quarter. Fieldview Capital Management LLC now owns 57,491 shares of the company's stock valued at $4,586,000 after acquiring an additional 19,363 shares in the last quarter. Capital World Investors increased its stake in shares of Kontoor Brands by 8.5% during the third quarter. Capital World Investors now owns 1,276,410 shares of the company's stock worth $101,819,000 after acquiring an additional 100,000 shares during the period. Finally, AMG National Trust Bank increased its stake in shares of Kontoor Brands by 19.9% during the fourth quarter. AMG National Trust Bank now owns 162,657 shares of the company's stock worth $9,937,000 after acquiring an additional 27,044 shares during the period. 93.06% of the stock is owned by hedge funds and other institutional investors.

Kontoor Brands Company Profile

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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