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

Kontoor Brands (NYSE:KTB) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday,Zacks.com reports.

Several other equities analysts have also commented on KTB. Jefferies Financial Group assumed coverage on Kontoor Brands in a research report on Wednesday, February 4th. They set a “hold” rating and a $65.00 price objective for the company. Wall Street Zen downgraded Kontoor Brands from a “strong-buy” rating to a “hold” rating in a report on Saturday. Stifel Nicolaus raised their price target on Kontoor Brands from $75.00 to $80.00 and gave the company a “hold” rating in a report on Tuesday, March 3rd. The Goldman Sachs Group raised their price target on Kontoor Brands from $84.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, March 4th. Finally, UBS Group raised their price target on Kontoor Brands from $118.00 to $131.00 and gave the company a “buy” rating in a report on Wednesday, March 4th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $91.33.

Kontoor Brands Stock Performance

Shares of Kontoor Brands stock opened at $67.80 on Monday. 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 $3.75 billion, a P/E ratio of 13.72 and a beta of 0.91. The business has a fifty day simple moving average of $71.48 and a two-hundred day simple moving average of $68.97. Kontoor Brands has a 12 month low of $53.55 and a 12 month high of $87.00.

Kontoor Brands (NYSE:KTB) last announced its quarterly earnings data on Thursday, May 7th. The company reported $1.06 EPS for the quarter, missing the consensus estimate 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 net margin of 8.30% and a return on equity of 60.17%. The business’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.20 EPS. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. On average, equities analysts forecast that Kontoor Brands will post 5.2 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kontoor Brands

Institutional investors and hedge funds have recently modified their holdings of the stock. Transamerica Financial Advisors LLC increased its holdings in Kontoor Brands by 335.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 405 shares of the company’s stock worth $25,000 after buying an additional 312 shares in the last quarter. Clearstead Advisors LLC increased its holdings in Kontoor Brands by 2,538.5% in the 3rd quarter. Clearstead Advisors LLC now owns 343 shares of the company’s stock worth $27,000 after buying an additional 330 shares in the last quarter. Torren Management LLC bought a new stake in Kontoor Brands in the 4th quarter worth about $27,000. First Horizon Corp bought a new stake in Kontoor Brands in the 3rd quarter worth about $31,000. Finally, Assetmark Inc. increased its holdings in Kontoor Brands by 532.3% in the 3rd quarter. Assetmark Inc. now owns 392 shares of the company’s stock worth $31,000 after buying an additional 330 shares in the last quarter. 93.06% of the stock is currently owned by institutional investors.

About Kontoor Brands

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.