Zacks Research Downgrades Kontoor Brands (NYSE:KTB) to Strong Sell

Kontoor Brands (NYSE:KTB) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other equities analysts also recently issued reports about the stock. Stifel Nicolaus lifted their price objective on shares of Kontoor Brands from $75.00 to $80.00 and gave the stock a “hold” rating in a report on Tuesday, March 3rd. BTIG Research reaffirmed a “buy” rating and set a $100.00 price objective on shares of Kontoor Brands in a report on Friday, May 1st. Weiss Ratings upgraded Kontoor Brands from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. JPMorgan Chase & Co. began coverage on shares of Kontoor Brands in a report on Monday. They issued an “overweight” rating and a $90.00 price target on the stock. Finally, The Goldman Sachs Group boosted their price target on shares of Kontoor Brands from $84.00 to $95.00 and gave the stock a “buy” rating in a report on Wednesday, March 4th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Kontoor Brands presently has an average rating of “Moderate Buy” and a consensus price target of $91.20.

Kontoor Brands Price Performance

KTB opened at $80.48 on Wednesday. The company has a debt-to-equity ratio of 1.83, a current ratio of 1.87 and a quick ratio of 1.10. The company has a market capitalization of $4.45 billion, a price-to-earnings ratio of 16.29 and a beta of 0.89. The firm’s fifty day moving average price is $71.45 and its two-hundred day moving average price is $68.10. Kontoor Brands has a 1 year low of $53.55 and a 1 year high of $87.00.

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of KTB. Transamerica Financial Advisors LLC grew its position in Kontoor Brands by 335.5% during the fourth 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 last quarter. Clearstead Advisors LLC boosted its stake in shares of Kontoor Brands by 2,538.5% during the third quarter. Clearstead Advisors LLC now owns 343 shares of the company’s stock valued at $27,000 after purchasing an additional 330 shares during the period. Torren Management LLC purchased a new stake in shares of Kontoor Brands during the fourth quarter valued at approximately $27,000. Assetmark Inc. boosted its stake in shares of Kontoor Brands by 532.3% during the third quarter. Assetmark Inc. now owns 392 shares of the company’s stock valued at $31,000 after purchasing an additional 330 shares during the period. Finally, Private Trust Co. NA purchased a new stake in shares of Kontoor Brands during the fourth quarter valued at approximately $31,000. 93.06% of the stock is currently owned by 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.