Kontoor Brands (NYSE:KTB) Trading Down 4.1% - What's Next?

Key Points

• Kontoor Brands shares fell 4.1% to about $79.83 in Tuesday trading, with volume significantly below average. The stock’s average analyst rating remains “Moderate Buy,” with a consensus price target of $95.
• The company slightly exceeded quarterly EPS expectations at $1.06 versus $1.05, but revenue declined 11.2% year over year to $584.29 million. Management issued fiscal 2026 EPS guidance of $5.25–$5.35.
• Kontoor announced a quarterly dividend of $0.53 per share, equating to a 2.7% annualized yield. Meanwhile, company insiders sold roughly 196,000 shares worth $16.3 million over the past 90 days, including substantial sales by the CEO and an executive vice president.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report) was down 4.1% during trading on Tuesday . The stock traded as low as $80.15 and last traded at $79.83. Approximately 172,754 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 805,211 shares. The stock had previously closed at $83.23.

Wall Street Analyst Weigh In

KTB has been the subject of several analyst reports. Barclays raised their target price on Kontoor Brands from $96.00 to $99.00 and gave the stock an "overweight" rating in a research report on Thursday, August 13th. Wells Fargo & Company boosted their price target on shares of Kontoor Brands from $100.00 to $110.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Wall Street Zen downgraded Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings raised Kontoor Brands from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 19th. Finally, UBS Group upped their price target on shares of Kontoor Brands from $131.00 to $136.00 and gave the company a "buy" rating in a report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $95.00.

Kontoor Brands Stock Performance

The company has a market capitalization of $4.36 billion, a price-to-earnings ratio of 16.61 and a beta of 0.88. The company has a current ratio of 1.83, a quick ratio of 0.99 and a debt-to-equity ratio of 1.82. The stock's 50 day moving average price is $82.59 and its 200 day moving average price is $74.69.

Kontoor Brands (NYSE:KTB - Get Free Report) last posted 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. The business had revenue of $584.29 million during the quarter, compared to analysts' expectations of $586.95 million. Kontoor Brands had a return on equity of 59.71% and a net margin of 8.21%.Kontoor Brands's quarterly revenue was down 11.2% on a year-over-year basis. During the same quarter last year, the company posted $1.33 earnings per share. Kontoor Brands has set its FY 2026 guidance at 5.250-5.350 EPS. Analysts expect that Kontoor Brands, Inc. will post 5.27 earnings per share for the current year.

Kontoor Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, September 8th will be paid a dividend of $0.53 per share. The ex-dividend date is Tuesday, September 8th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.7%. Kontoor Brands's dividend payout ratio (DPR) is 44.26%.

Insider Transactions at Kontoor Brands

In related news, EVP Thomas L. Doerr, Jr. sold 7,660 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $83.43, for a total value of $639,073.80. Following the completion of the transaction, the executive vice president owned 25,063 shares of the company's stock, valued at $2,091,006.09. The trade was a 23.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Scott H. Baxter sold 184,403 shares of the firm's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $83.40, for a total transaction of $15,379,210.20. Following the completion of the transaction, the chief executive officer directly owned 261,786 shares in the company, valued at approximately $21,832,952.40. This represents a 41.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 196,063 shares of company stock valued at $16,342,364. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Transamerica Financial Advisors LLC lifted its stake in Kontoor Brands by 335.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 405 shares of the company's stock valued at $25,000 after purchasing an additional 312 shares during the last quarter. Global Retirement Partners LLC bought a new position in shares of Kontoor Brands during the second quarter worth about $26,000. Torren Management LLC bought a new position in Kontoor Brands during the 4th quarter worth approximately $27,000. Hantz Financial Services Inc. lifted its holdings in Kontoor Brands by 196.2% in the fourth quarter. Hantz Financial Services Inc. now owns 551 shares of the company's stock valued at $34,000 after buying an additional 365 shares during the period. Finally, CENTRAL TRUST Co bought a new stake in shares of Kontoor Brands during the 1st quarter valued at about $35,000. Institutional investors and hedge funds own 93.06% of the company's stock.

About Kontoor Brands

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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