Michael Kors (KORS) Shares Gap Down After Insider Selling

Shares of Michael Kors Holdings Ltd (NYSE:KORS) gapped down prior to trading on Thursday after an insider sold shares in the company. The stock had previously closed at $58.98, but opened at $62.27. Michael Kors shares last traded at $62.36, with a volume of 122698 shares changing hands.

Specifically, CEO John D. Idol sold 6,676 shares of the company’s stock in a transaction dated Wednesday, October 10th. The shares were sold at an average price of $65.26, for a total value of $435,675.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Michael David Kors sold 179,920 shares of the company’s stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $73.62, for a total transaction of $13,245,710.40. The disclosure for this sale can be found here. Insiders sold 996,436 shares of company stock valued at $70,839,459 in the last three months. 6.00% of the stock is currently owned by insiders.

A number of equities research analysts recently issued reports on KORS shares. UBS Group started coverage on shares of Michael Kors in a report on Thursday, June 21st. They issued a “neutral” rating and a $70.00 price objective for the company. Goldman Sachs Group started coverage on shares of Michael Kors in a report on Monday, June 25th. They issued a “neutral” rating and a $72.00 price objective for the company. HSBC started coverage on shares of Michael Kors in a report on Monday, July 9th. They issued a “buy” rating and a $88.00 price objective for the company. Canaccord Genuity reissued a “buy” rating and issued a $84.00 price objective on shares of Michael Kors in a report on Wednesday, August 8th. Finally, Jefferies Financial Group upped their price objective on shares of Michael Kors from $90.00 to $93.00 and gave the company a “buy” rating in a report on Wednesday, August 8th. They noted that the move was a valuation call. Eighteen analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Michael Kors currently has a consensus rating of “Hold” and an average price target of $75.93.

The stock has a market capitalization of $10.24 billion, a PE ratio of 14.07, a PEG ratio of 2.16 and a beta of 0.12. The company has a current ratio of 1.37, a quick ratio of 0.63 and a debt-to-equity ratio of 0.27.

Michael Kors (NYSE:KORS) last issued its quarterly earnings results on Wednesday, August 8th. The lifestyle brand reported $1.32 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.95 by $0.37. The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.14 billion. Michael Kors had a net margin of 13.14% and a return on equity of 39.01%. The business’s quarterly revenue was up 26.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.80 earnings per share. Research analysts anticipate that Michael Kors Holdings Ltd will post 5.02 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently modified their holdings of the company. Signet Financial Management LLC acquired a new stake in shares of Michael Kors during the second quarter worth about $140,000. Cerebellum GP LLC acquired a new stake in shares of Michael Kors during the third quarter worth about $169,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Michael Kors during the second quarter worth about $200,000. Conning Inc. acquired a new stake in shares of Michael Kors during the second quarter worth about $204,000. Finally, Canandaigua National Bank & Trust Co. acquired a new stake in shares of Michael Kors during the second quarter worth about $261,000. 86.61% of the stock is currently owned by institutional investors and hedge funds.

About Michael Kors (NYSE:KORS)

Michael Kors Holdings Limited design, markets, distributes, and retails branded women's and men's apparel and accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK Retail segment sells women's apparel; handbags and small leather goods; men's apparel; footwear; and licensed products comprising watches, jewelry, fragrances, and beauty and eyewear.

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