Kontoor Brands (NYSE:KTB) Stock Price Down 3.2% - Should You Sell?

Key Points

• Kontoor Brands shares fell 3.2% to about $66.16 in thin mid-day trading, well below their 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $95, despite mixed rating changes.
• The company beat quarterly EPS estimates by $0.01 but reported an 11.2% year-over-year revenue decline; it also announced a $0.53 quarterly dividend, representing a 3.2% yield.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report)'s stock price traded down 3.2% during mid-day trading on Thursday . The stock traded as low as $66.28 and last traded at $66.1560. 119,676 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 797,853 shares. The stock had previously closed at $68.37.

Analyst Ratings Changes

A number of research firms have commented on KTB. 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 downgraded Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, September 2nd. UBS Group raised their target price on Kontoor Brands from $131.00 to $136.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Wells Fargo & Company raised their target price on shares of Kontoor Brands from $100.00 to $110.00 and gave the company an "overweight" rating in a research report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. raised their price target on shares of Kontoor Brands from $90.00 to $105.00 and gave the company an "overweight" rating in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $95.00.

Kontoor Brands Trading Down 3.6%

The company has a quick ratio of 0.99, a current ratio of 1.83 and a debt-to-equity ratio of 1.82. The firm's 50 day simple moving average is $79.49 and its two-hundred day simple moving average is $75.30. The stock has a market capitalization of $3.60 billion, a P/E ratio of 13.78 and a beta of 0.87.

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

Kontoor Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Tuesday, September 8th. Kontoor Brands's payout ratio is currently 44.26%.

Insider Buying and Selling at Kontoor Brands

In related news, CEO Scott Baxter sold 184,403 shares of the stock in a transaction 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 completion of the sale, the chief executive officer directly owned 261,786 shares of the company's stock, valued at approximately $21,832,952.40. This represents a 41.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Thomas Doerr, Jr. sold 7,660 shares of the firm's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $83.43, for a total transaction of $639,073.80. Following the transaction, the executive vice president directly owned 25,063 shares in the company, valued at $2,091,006.09. The trade was a 23.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Kontoor Brands

Several institutional investors have recently bought and sold shares of KTB. BlackRock Inc. purchased a new stake in Kontoor Brands during the second quarter valued at about $674,664,000. Geode Capital Management LLC raised its position in shares of Kontoor Brands by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 1,419,700 shares of the company's stock valued at $86,741,000 after buying an additional 13,725 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in Kontoor Brands by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,268,336 shares of the company's stock worth $89,132,000 after purchasing an additional 6,477 shares during the last quarter. Jennison Associates LLC boosted its stake in Kontoor Brands by 0.9% in the first quarter. Jennison Associates LLC now owns 1,225,371 shares of the company's stock worth $86,131,000 after buying an additional 10,540 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Kontoor Brands during the 4th quarter valued at $36,185,000. Hedge funds and other institutional investors own 93.06% of the company's stock.

Kontoor Brands Company Profile

Kontoor Brands, Inc NYSE: KTB is a global lifestyle apparel company that designs, manufactures, sources and markets branded clothing and accessories. The company is best known for its denim and casualwear businesses, serving consumers through wholesale distributors, department and specialty stores, company-operated retail locations and e-commerce channels.

Kontoor's principal brands include Wrangler, a heritage brand focused on denim, westernwear, workwear and casual apparel, and Lee, which offers denim and lifestyle clothing for men, women and children.

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