Kontoor Brands (NYSE:KTB) Stock Price Up 12.3% Following 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) was up 12.3% on Thursday following a stronger than expected earnings report. The stock traded as high as $65.51 and last traded at $63.71. Approximately 522,237 shares changed hands during trading, a decline of 28% from the average daily 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. The firm had revenue of $658.26 million for the quarter, compared to the consensus estimate of $632.97 million. Kontoor Brands had a net margin of 9.48% and a return on equity of 68.76%. The company's revenue for the quarter was up 8.5% on a year-over-year basis. During the same period last year, the firm posted $0.98 earnings per share.

Kontoor Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Tuesday, September 9th will be issued a $0.52 dividend. The ex-dividend date is Tuesday, September 9th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 3.1%. Kontoor Brands's payout ratio is 46.43%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on KTB. UBS Group boosted their price objective on shares of Kontoor Brands from $92.00 to $99.00 and gave the stock a "buy" rating in a research report on Friday. The Goldman Sachs Group set a $85.00 price target on shares of Kontoor Brands and gave the stock a "buy" rating in a research note on Tuesday, June 10th. Stifel Nicolaus increased their price objective on shares of Kontoor Brands from $72.00 to $73.00 and gave the company a "hold" rating in a research note on Friday. Wells Fargo & Company raised their price target on shares of Kontoor Brands from $85.00 to $90.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 14th. Finally, Wall Street Zen upgraded shares of Kontoor Brands from a "hold" rating to a "strong-buy" rating in a report on Saturday. One equities research analyst has rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $89.67.

Hedge Funds Weigh In On Kontoor Brands

A number of institutional investors have recently bought and sold shares of KTB. Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in shares of Kontoor Brands by 56.4% during the 2nd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 57,693 shares of the company's stock valued at $3,806,000 after buying an additional 20,812 shares during the last quarter. Cetera Investment Advisers increased its position in Kontoor Brands by 21.1% in the 2nd quarter. Cetera Investment Advisers now owns 6,188 shares of the company's stock worth $408,000 after buying an additional 1,078 shares during the period. Intech Investment Management LLC increased its position in Kontoor Brands by 50.5% in the 2nd quarter. Intech Investment Management LLC now owns 69,513 shares of the company's stock worth $4,586,000 after buying an additional 23,324 shares during the period. Creative Planning increased its position in shares of Kontoor Brands by 34.9% during the second quarter. Creative Planning now owns 36,488 shares of the company's stock valued at $2,407,000 after purchasing an additional 9,439 shares during the period. Finally, SG Americas Securities LLC increased its position in shares of Kontoor Brands by 207.4% during the second quarter. SG Americas Securities LLC now owns 5,407 shares of the company's stock valued at $357,000 after purchasing an additional 3,648 shares during the period. Hedge funds and other institutional investors own 93.06% of the company's stock.

Kontoor Brands Trading Down 0.5%

The business has a 50-day moving average price of $65.02 and a 200-day moving average price of $67.66. The firm has a market capitalization of $3.74 billion, a P/E ratio of 15.02, a PEG ratio of 1.55 and a beta of 1.11. The company has a quick ratio of 0.95, a current ratio of 2.18 and a debt-to-equity ratio of 2.74.

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.