Kontoor Brands (NYSE:KTB) Stock Falls 0.2% - Here's Why

Key Points

• Kontoor Brands shares dipped 0.2% to about $73.14, while trading volume rose 12% above the average daily level.
• Analyst sentiment remains broadly positive, with seven Buy ratings, four Holds and one Sell; the consensus rating is Moderate Buy with an average price target of $96.56.
• The company slightly beat quarterly EPS expectations but reported an 11.2% year-over-year revenue decline; it also maintains a $0.53 quarterly dividend, yielding approximately 2.9%.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report)'s share price fell 0.2% during trading on Monday. The stock traded as low as $72.50 and last traded at $73.1380. Approximately 726,091 shares were traded during trading, an increase of 12% from the average daily volume of 647,895 shares. The stock had previously closed at $73.28.

Analyst Upgrades and Downgrades

KTB has been the topic of several analyst reports. Zacks Research raised shares of Kontoor Brands from a "strong sell" rating to a "hold" rating in a research report on Thursday, July 9th. Weiss Ratings lowered shares of Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 2nd. BTIG Research reaffirmed a "buy" rating and issued a $105.00 price objective on shares of Kontoor Brands in a research note on Tuesday, September 15th. UBS Group boosted their price objective on Kontoor Brands from $131.00 to $136.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Finally, Barclays raised their price objective on Kontoor Brands from $96.00 to $99.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $96.56.

Kontoor Brands Price Performance

The firm has a market cap of $4.00 billion, a P/E ratio of 15.27 and a beta of 0.87. The stock's 50-day simple moving average is $71.52 and its two-hundred day simple moving average is $74.79. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.83 and a quick ratio of 0.99.

Kontoor Brands (NYSE:KTB - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.05 by $0.01. Kontoor Brands had a return on equity of 59.71% and a net margin of 8.21%. The firm had revenue of $584.29 million during the quarter, compared to analysts' expectations of $586.95 million. During the same period in the prior year, the business posted $1.33 EPS. The firm's quarterly revenue was down 11.2% on a year-over-year basis. Kontoor Brands has set its FY 2026 guidance at 5.250-5.350 EPS. Equities research analysts forecast that Kontoor Brands, Inc. will post 5.27 earnings per share for the current fiscal year.

Kontoor Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th were issued a $0.53 dividend. The ex-dividend date was Tuesday, September 8th. This represents a $2.12 annualized dividend and a yield of 2.9%. Kontoor Brands's payout ratio is 44.26%.

Insiders Place Their Bets

In related news, EVP Thomas L. Doerr, Jr. sold 7,660 shares of the company's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $83.43, for a total transaction of $639,073.80. Following the completion of the transaction, the executive vice president directly owned 25,063 shares in the company, valued at $2,091,006.09. This represents a 23.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Scott H. Baxter sold 184,403 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $83.40, for a total value of $15,379,210.20. Following the sale, the chief executive officer directly owned 261,786 shares in the company, valued at approximately $21,832,952.40. The trade was a 41.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.80% of the stock is owned by company insiders.

Institutional Trading of Kontoor Brands

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Global Retirement Partners LLC bought a new stake in Kontoor Brands in the second quarter valued at approximately $26,000. CENTRAL TRUST Co acquired a new stake in shares of Kontoor Brands during the 1st quarter valued at $35,000. Bell Investment Advisors Inc acquired a new position in Kontoor Brands during the 2nd quarter worth about $42,000. Harbor Investment Advisory LLC bought a new position in shares of Kontoor Brands during the 2nd quarter worth about $61,000. Finally, Versant Capital Management Inc boosted its stake in Kontoor Brands by 68.2% during the 3rd quarter. Versant Capital Management Inc now owns 1,090 shares of the company's stock valued at $69,000 after purchasing an additional 442 shares during the last quarter. Institutional investors own 93.06% of the company's stock.

Kontoor Brands Company Profile

Kontoor Brands, Inc is a global lifestyle apparel company focused primarily on denim and casualwear. Its portfolio includes Wrangler, a denim and western-inspired apparel brand, and Lee, a denim and casualwear brand with a long history in the United States and international markets. The company also offers products under other brands, including Rock & Republic, and sells jeans, tops, jackets, shirts, shorts and related apparel.

Kontoor Brands serves consumers through wholesale partners, department stores, specialty retailers, mass merchants, company-operated and brand-specific retail locations, and e-commerce channels.

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