Ralph Lauren (NYSE:RL) Hits New 12-Month High on Better-Than-Expected Earnings

Key Points

• Ralph Lauren's share price hit a new 52-week high of $310.00 following an earnings report that included a better-than-expected earnings per share (EPS) of $3.77, surpassing the consensus estimate of $3.50.
• The company announced a quarterly dividend increase to $0.9125, up from $0.83, reflecting a commitment to returning value to shareholders.
• Ralph Lauren has received mixed ratings from analysts, with a consensus rating of "Moderate Buy" and a target price ranging from $205.00 to $328.00.

Ralph Lauren Corporation (NYSE:RL - Get Free Report) shares hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $310.00 and last traded at $286.43, with a volume of 17750 shares changing hands. The stock had previously closed at $302.96.

The textile maker reported $3.77 EPS for the quarter, topping analysts' consensus estimates of $3.50 by $0.27. Ralph Lauren had a net margin of 10.91% and a return on equity of 33.72%. The business had revenue of $1.72 billion during the quarter, compared to analysts' expectations of $1.65 billion. During the same period last year, the company posted $2.70 EPS. The business's revenue was up 13.7% on a year-over-year basis.

Ralph Lauren Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 11th. Investors of record on Friday, June 27th were paid a dividend of $0.9125 per share. The ex-dividend date of this dividend was Friday, June 27th. This represents a $3.65 dividend on an annualized basis and a dividend yield of 1.3%. This is a boost from Ralph Lauren's previous quarterly dividend of $0.83. Ralph Lauren's dividend payout ratio is presently 31.44%.

Ralph Lauren declared that its board has approved a share repurchase program on Thursday, May 22nd that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the textile maker to purchase up to 8.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Telsey Advisory Group lifted their price target on shares of Ralph Lauren from $315.00 to $335.00 and gave the stock an "outperform" rating in a research note on Monday. Wells Fargo & Company lifted their price target on shares of Ralph Lauren from $300.00 to $320.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 23rd. Cfra Research lowered shares of Ralph Lauren from a "hold" rating to a "moderate sell" rating in a report on Tuesday, May 20th. The Goldman Sachs Group lifted their price objective on shares of Ralph Lauren from $262.00 to $324.00 and gave the company a "buy" rating in a report on Friday, May 23rd. Finally, UBS Group lifted their price objective on shares of Ralph Lauren from $385.00 to $404.00 and gave the company a "buy" rating in a report on Friday. One research analyst has rated the stock with a sell rating, three have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Ralph Lauren currently has an average rating of "Moderate Buy" and a consensus price target of $306.41.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Hantz Financial Services Inc. raised its stake in shares of Ralph Lauren by 1,228.6% during the 2nd quarter. Hantz Financial Services Inc. now owns 93 shares of the textile maker's stock worth $26,000 after acquiring an additional 86 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in shares of Ralph Lauren by 93.7% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 122 shares of the textile maker's stock worth $27,000 after acquiring an additional 59 shares in the last quarter. Sentry Investment Management LLC raised its stake in shares of Ralph Lauren by 178.0% during the 1st quarter. Sentry Investment Management LLC now owns 139 shares of the textile maker's stock worth $31,000 after acquiring an additional 89 shares in the last quarter. First Horizon Advisors Inc. raised its stake in shares of Ralph Lauren by 69.7% during the 2nd quarter. First Horizon Advisors Inc. now owns 151 shares of the textile maker's stock worth $41,000 after acquiring an additional 62 shares in the last quarter. Finally, Banque Transatlantique SA bought a new position in shares of Ralph Lauren during the 1st quarter worth approximately $33,000. Institutional investors own 67.91% of the company's stock.

Ralph Lauren Stock Performance

The stock has a market cap of $17.41 billion, a P/E ratio of 23.05, a price-to-earnings-growth ratio of 2.07 and a beta of 1.53. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.33 and a current ratio of 1.84. The firm's 50 day moving average is $282.43 and its 200 day moving average is $256.47.

About Ralph Lauren

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.