Kontoor Brands (NYSE:KTB) Shares Down 7.1% – Here’s What Happened

Shares of Kontoor Brands, Inc. (NYSE:KTB) dropped 7.1% during mid-day trading on Monday . The stock traded as low as $68.87 and last traded at $68.3850. Approximately 146,954 shares traded hands during trading, a decline of 82% from the average daily volume of 801,991 shares. The stock had previously closed at $73.65.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on KTB shares. Wall Street Zen cut Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research note on Saturday. Wells Fargo & Company boosted their target price on Kontoor Brands from $95.00 to $100.00 and gave the stock an “overweight” rating in a research note on Wednesday, March 4th. UBS Group boosted their target price on Kontoor Brands from $118.00 to $131.00 and gave the stock a “buy” rating in a research note on Wednesday, March 4th. Stifel Nicolaus boosted their target price on Kontoor Brands from $75.00 to $80.00 and gave the stock a “hold” rating in a research note on Tuesday, March 3rd. Finally, Barclays lifted their price target on Kontoor Brands from $93.00 to $96.00 and gave the stock an “overweight” rating in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $91.33.

Kontoor Brands Price Performance

The company has a current ratio of 1.87, a quick ratio of 1.10 and a debt-to-equity ratio of 1.83. The firm has a market capitalization of $3.78 billion, a PE ratio of 13.86 and a beta of 0.91. The company has a fifty day moving average price of $71.26 and a two-hundred day moving average price of $69.29.

Kontoor Brands (NYSE:KTB) last posted its earnings results on Thursday, May 7th. The company reported $1.06 earnings per share for the quarter, missing the consensus estimate of $1.17 by ($0.11). Kontoor Brands had a net margin of 8.81% and a return on equity of 55.20%. The firm had revenue of $613.32 million during the quarter, compared to analysts’ expectations of $784.76 million. During the same period in the previous year, the firm posted $1.20 earnings per share. The firm’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. Sell-side analysts forecast that Kontoor Brands, Inc. will post 6.65 earnings per share for the current year.

Kontoor Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Monday, June 8th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 3.1%. The ex-dividend date is Monday, June 8th. Kontoor Brands’s payout ratio is 42.91%.

Hedge Funds Weigh In On Kontoor Brands

Institutional investors have recently added to or reduced their stakes in the stock. Transamerica Financial Advisors LLC increased its position 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 acquiring an additional 312 shares during the period. Clearstead Advisors LLC increased its position in Kontoor Brands by 2,538.5% during the 3rd quarter. Clearstead Advisors LLC now owns 343 shares of the company’s stock worth $27,000 after purchasing an additional 330 shares during the period. Torren Management LLC acquired a new position in Kontoor Brands during the 4th quarter worth approximately $27,000. First Horizon Corp acquired a new position in Kontoor Brands during the 3rd quarter worth approximately $31,000. Finally, Assetmark Inc. increased its position in Kontoor Brands by 532.3% during the 3rd quarter. Assetmark Inc. now owns 392 shares of the company’s stock worth $31,000 after purchasing an additional 330 shares during the period. Institutional investors and hedge funds own 93.06% of the company’s stock.

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.