Kontoor Brands (NYSE:KTB) Trading Up 12.3% After Better-Than-Expected Earnings

Key Points

• Kontoor Brands' stock surged 12.3% after reporting earnings of $1.21 per share, significantly exceeding the consensus estimate of $0.86.
• The company announced a quarterly dividend of $0.52 per share, representing an annualized dividend yield of 3.3%.
• Analyst ratings for Kontoor Brands vary, with a consensus rating of "Moderate Buy" and a target price averaging $87.50.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report)'s share price shot up 12.3% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $65.51 and last traded at $63.71. 522,237 shares traded hands during trading, a decline of 28% from the average session volume of 722,820 shares. The stock had previously closed at $56.72.

The company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.35. Kontoor Brands had a net margin of 8.82% and a return on equity of 71.33%. The business had revenue of $658.26 million during the quarter, compared to the consensus estimate of $632.97 million. During the same period in the previous year, the firm posted $0.98 earnings per share. The firm's revenue for the quarter was up 8.5% on a year-over-year basis.

Kontoor Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Tuesday, September 9th will be paid a dividend of $0.52 per share. The ex-dividend date of this dividend is Tuesday, September 9th. This represents a $2.08 annualized dividend and a dividend yield of 3.3%. Kontoor Brands's payout ratio is 50.98%.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Stifel Nicolaus cut their price objective on shares of Kontoor Brands from $83.00 to $72.00 and set a "hold" rating on the stock in a report on Thursday, April 10th. Wells Fargo & Company boosted their target price on Kontoor Brands from $85.00 to $90.00 and gave the stock an "overweight" rating in a report on Wednesday, May 14th. UBS Group raised their price target on shares of Kontoor Brands from $83.00 to $92.00 and gave the company a "buy" rating in a research report on Wednesday, May 7th. Barclays boosted their target price on Kontoor Brands from $75.00 to $86.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 20th. Finally, The Goldman Sachs Group set a $85.00 target price on shares of Kontoor Brands and gave the stock a "buy" rating in a research report on Tuesday, June 10th. One analyst has rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $87.50.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in KTB. Atlantic Union Bankshares Corp bought a new stake in shares of Kontoor Brands during the second quarter valued at approximately $26,000. CX Institutional purchased a new stake in Kontoor Brands in the first quarter worth about $32,000. Ameritas Advisory Services LLC purchased a new stake in Kontoor Brands in the second quarter worth about $35,000. Versant Capital Management Inc grew its holdings in Kontoor Brands by 46.7% during the 1st quarter. Versant Capital Management Inc now owns 650 shares of the company's stock worth $42,000 after acquiring an additional 207 shares in the last quarter. Finally, Quarry LP increased its position in Kontoor Brands by 161.3% during the 4th quarter. Quarry LP now owns 729 shares of the company's stock valued at $62,000 after purchasing an additional 450 shares during the period. Hedge funds and other institutional investors own 93.06% of the company's stock.

Kontoor Brands Price Performance

The stock has a market cap of $3.55 billion, a PE ratio of 15.64, a PEG ratio of 1.38 and a beta of 1.11. The firm's 50-day moving average price is $65.46 and its two-hundred day moving average price is $68.52. The company has a current ratio of 2.78, a quick ratio of 1.65 and a debt-to-equity ratio of 1.72.

Kontoor Brands Company Profile

Kontoor Brands, Inc, a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name.

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