Ralph Lauren Corporation (NYSE:RL) Sees Significant Growth in Short Interest

Key Points

• Ralph Lauren Corporation experienced a significant increase in short interest, growing by 25.8% in August, bringing the total to 1,560,000 shares, or 4.2% of its shares sold short.
• The company recently declared a quarterly dividend of $0.9125 per share, with a payout ratio of 29.15%, indicating a 1.2% yield for investors.
• Ralph Lauren's recent earnings report showed earnings per share of $3.77, surpassing expectations, alongside a 13.7% year-over-year revenue increase to $1.72 billion.

Ralph Lauren Corporation (NYSE:RL - Get Free Report) was the target of a large growth in short interest in August. As of August 31st, there was short interest totaling 1,560,000 shares, a growth of 25.8% from the August 15th total of 1,240,000 shares. Based on an average daily trading volume, of 677,800 shares, the short-interest ratio is presently 2.3 days. Approximately 4.2% of the shares of the stock are sold short. Approximately 4.2% of the shares of the stock are sold short. Based on an average daily trading volume, of 677,800 shares, the short-interest ratio is presently 2.3 days.

Ralph Lauren Trading Down 0.6%

Shares of Ralph Lauren stock traded down $2.00 on Friday, hitting $311.98. 1,432,535 shares of the company traded hands, compared to its average volume of 843,322. The stock's 50 day moving average price is $298.18 and its 200-day moving average price is $263.39. The company has a current ratio of 1.84, a quick ratio of 1.30 and a debt-to-equity ratio of 0.58. Ralph Lauren has a 52 week low of $176.61 and a 52 week high of $321.77. The company has a market cap of $18.90 billion, a PE ratio of 24.92, a PEG ratio of 1.55 and a beta of 1.60.

Ralph Lauren (NYSE:RL - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The textile maker reported $3.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.50 by $0.27. The company had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.65 billion. Ralph Lauren had a net margin of 10.91% and a return on equity of 33.72%. Ralph Lauren's revenue was up 13.7% compared to the same quarter last year. During the same period last year, the company posted $2.70 earnings per share. Equities research analysts predict that Ralph Lauren will post 12.01 EPS for the current year.

Ralph Lauren Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Friday, September 26th will be issued a dividend of $0.9125 per share. This represents a $3.65 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, September 26th. Ralph Lauren's dividend payout ratio (DPR) is presently 29.15%.

Ralph Lauren declared that its Board of Directors has initiated a stock buyback plan on Thursday, May 22nd that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the textile maker to purchase up to 8.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of brokerages have recently weighed in on RL. The Goldman Sachs Group raised their price objective on Ralph Lauren from $262.00 to $324.00 and gave the company a "buy" rating in a research report on Friday, May 23rd. Needham & Company LLC increased their price target on shares of Ralph Lauren from $335.00 to $350.00 and gave the company a "buy" rating in a report on Friday, September 12th. Wall Street Zen raised shares of Ralph Lauren from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Jefferies Financial Group increased their price target on shares of Ralph Lauren from $325.00 to $365.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Cowen reissued a "buy" rating on shares of Ralph Lauren in a research note on Thursday, May 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $311.41.

Hedge Funds Weigh In On Ralph Lauren

Several institutional investors have recently bought and sold shares of the business. Kestra Private Wealth Services LLC increased its holdings in Ralph Lauren by 4.2% during the first quarter. Kestra Private Wealth Services LLC now owns 1,045 shares of the textile maker's stock valued at $231,000 after buying an additional 42 shares during the period. Baader Bank Aktiengesellschaft increased its holdings in Ralph Lauren by 3.4% during the first quarter. Baader Bank Aktiengesellschaft now owns 1,367 shares of the textile maker's stock valued at $300,000 after buying an additional 45 shares during the period. Coldstream Capital Management Inc. increased its holdings in Ralph Lauren by 6.3% during the second quarter. Coldstream Capital Management Inc. now owns 806 shares of the textile maker's stock valued at $221,000 after buying an additional 48 shares during the period. Geneos Wealth Management Inc. increased its holdings in Ralph Lauren by 57.1% during the second quarter. Geneos Wealth Management Inc. now owns 143 shares of the textile maker's stock valued at $39,000 after buying an additional 52 shares during the period. Finally, Modera Wealth Management LLC grew its holdings in Ralph Lauren by 5.8% in the second quarter. Modera Wealth Management LLC now owns 1,028 shares of the textile maker's stock worth $282,000 after purchasing an additional 56 shares during the last quarter. 67.91% of the stock is owned by hedge funds and other institutional investors.

Ralph Lauren Company Profile

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances.