Zacks Research Upgrades Kontoor Brands (NYSE:KTB) to Hold

Key Points

• Zacks Research upgraded Kontoor Brands from “strong sell” to “hold,” adding to a mixed analyst picture that still leans positive overall. The stock now has a consensus rating of “Moderate Buy” with an average price target of $91.20.
• Kontoor Brands shares were up 1.8% and opened at $85.69, near their 52-week high of $88.85. The company has a market cap of about $4.74 billion and trades above both its 50-day and 200-day moving averages.
• The company’s latest quarterly results were mixed: EPS of $1.06 missed expectations and revenue came in below estimates, though revenue still rose 45% year over year. Kontoor also disclosed an insider sale by EVP Jennifer H. Broyles of 4,000 shares.

Kontoor Brands (NYSE:KTB - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

Other equities analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of Kontoor Brands from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings cut shares of Kontoor Brands from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, June 15th. Barclays boosted their price target on Kontoor Brands from $93.00 to $96.00 and gave the company an "overweight" rating in a report on Monday, May 11th. JPMorgan Chase & Co. started coverage on Kontoor Brands in a research note on Monday, June 8th. They set an "overweight" rating and a $90.00 price target on the stock. Finally, BTIG Research restated a "buy" rating and set a $100.00 price objective on shares of Kontoor Brands in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $91.20.

Kontoor Brands Stock Up 1.8%

Shares of NYSE KTB opened at $85.69 on Thursday. The company's 50-day simple moving average is $75.14 and its 200-day simple moving average is $69.68. Kontoor Brands has a 52-week low of $53.55 and a 52-week high of $88.85. The firm has a market cap of $4.74 billion, a price-to-earnings ratio of 17.35 and a beta of 0.87. The company has a quick ratio of 1.10, a current ratio of 1.87 and a debt-to-equity ratio of 1.83.

Kontoor Brands (NYSE:KTB - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $1.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.11). Kontoor Brands had a return on equity of 60.17% and a net margin of 8.30%.The firm had revenue of $613.32 million for the quarter, compared to analyst estimates of $784.76 million. During the same period in the prior year, the business earned $1.20 earnings per share. Kontoor Brands's revenue for the quarter was up 45.0% on a year-over-year basis. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. Equities analysts predict that Kontoor Brands will post 5.2 EPS for the current fiscal year.

Insider Buying and Selling at Kontoor Brands

In related news, EVP Jennifer H. Broyles sold 4,000 shares of Kontoor Brands stock in a transaction on Friday, June 12th. The stock was sold at an average price of $81.02, for a total value of $324,080.00. Following the transaction, the executive vice president owned 40,261 shares in the company, valued at approximately $3,261,946.22. This trade represents a 9.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Kontoor Brands

Large investors have recently modified their holdings of the company. JPMorgan Chase & Co. lifted its position in Kontoor Brands by 15.8% during the fourth quarter. JPMorgan Chase & Co. now owns 3,019,204 shares of the company's stock valued at $184,443,000 after buying an additional 413,005 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Kontoor Brands by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 1,419,700 shares of the company's stock worth $86,741,000 after acquiring an additional 13,725 shares in the last quarter. Morgan Stanley increased its position in shares of Kontoor Brands by 8.8% in the fourth quarter. Morgan Stanley now owns 1,283,592 shares of the company's stock worth $78,415,000 after acquiring an additional 104,296 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Kontoor Brands by 0.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,268,336 shares of the company's stock valued at $89,132,000 after acquiring an additional 6,477 shares during the period. Finally, Jennison Associates LLC raised its stake in shares of Kontoor Brands by 0.9% in the 1st quarter. Jennison Associates LLC now owns 1,225,371 shares of the company's stock valued at $86,131,000 after acquiring an additional 10,540 shares during the period. 93.06% of the stock is currently owned by hedge funds and other institutional investors.

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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