Kontoor Brands (NYSE:KTB) Stock Price Down 5% - Time to Sell?

Key Points

• Kontoor Brands shares fell about 5% to roughly $70.91, below both its 50-day moving average of $82.56 and 200-day moving average of $75.12.
• Despite the decline, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $95, implying substantial upside from the current price.
• The company slightly beat quarterly EPS expectations but reported an 11.2% year-over-year revenue decline; it also declared a quarterly dividend of $0.53 per share, yielding approximately 3% annually.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report) shares dropped 5% during trading on Wednesday . The stock traded as low as $71.07 and last traded at $70.91. 394,469 shares traded hands during mid-day trading, a decline of 51% from the average session volume of 796,964 shares. The stock had previously closed at $74.64.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on KTB shares. Barclays upped 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. JPMorgan Chase & Co. increased their price objective on Kontoor Brands from $90.00 to $105.00 and gave the company an "overweight" rating in a research report on Tuesday, August 4th. Wells Fargo & Company lifted their price target on Kontoor Brands from $100.00 to $110.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 12th. Wall Street Zen downgraded shares of Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, UBS Group raised their price objective on Kontoor Brands from $131.00 to $136.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $95.00.

Kontoor Brands Stock Down 4.6%

The stock has a 50-day moving average of $82.56 and a 200-day moving average of $75.12. The firm has a market cap of $3.89 billion, a price-to-earnings ratio of 14.88 and a beta of 0.88. 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 results on Wednesday, August 12th. The company reported $1.06 EPS 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 company had revenue of $584.29 million for the quarter, compared to analysts' expectations of $586.95 million. During the same quarter last year, the business earned $1.33 earnings per share. Kontoor Brands's 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. Sell-side analysts predict that Kontoor Brands, Inc. will post 5.27 EPS for the current fiscal year.

Kontoor Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, September 8th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.0%. Kontoor Brands's payout ratio is 44.26%.

Insider Activity at Kontoor Brands

In other Kontoor Brands news, EVP Thomas L. Doerr, Jr. sold 7,660 shares of the business's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $83.43, for a total transaction of $639,073.80. Following the sale, the executive vice president owned 25,063 shares of the company's stock, valued at approximately $2,091,006.09. The trade was a 23.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Jennifer H. Broyles sold 4,000 shares of the company's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $81.02, for a total value of $324,080.00. Following the completion of the transaction, the executive vice president directly owned 40,261 shares of the company's stock, valued at approximately $3,261,946.22. The trade was a 9.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 196,063 shares of company stock valued at $16,342,364 over the last ninety days. 1.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kontoor Brands

Several large investors have recently modified their holdings of KTB. UBS Group AG raised its holdings in shares of Kontoor Brands by 3.8% in the 4th quarter. UBS Group AG now owns 551,758 shares of the company's stock worth $33,707,000 after purchasing an additional 20,270 shares during the period. AMG National Trust Bank bought a new stake in shares of Kontoor Brands in the second quarter valued at $8,877,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of Kontoor Brands in the first quarter valued at $1,918,000. BlackRock Inc. bought a new stake in Kontoor Brands in the 2nd quarter valued at about $674,664,000. Finally, Fifth Third Bancorp lifted its holdings in Kontoor Brands by 5,635.9% during the first quarter. Fifth Third Bancorp now owns 82,826 shares of the company's stock valued at $5,822,000 after purchasing an additional 81,382 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 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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