Kontoor Brands (NYSE:KTB) Shares Gap Up – What’s Next?

Kontoor Brands, Inc. (NYSE:KTB) gapped up prior to trading on Thursday . The stock had previously closed at $65.09, but opened at $68.15. Kontoor Brands shares last traded at $67.6740, with a volume of 102,315 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Barclays lifted their price target on shares of Kontoor Brands from $93.00 to $96.00 and gave the company an “overweight” rating in a research report on Monday, May 11th. Jefferies Financial Group began coverage on Kontoor Brands in a research note on Wednesday, February 4th. They set a “hold” rating and a $65.00 price objective on the stock. Weiss Ratings upgraded Kontoor Brands from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. The Goldman Sachs Group raised their price objective on Kontoor Brands from $84.00 to $95.00 and gave the company a “buy” rating in a research note on Wednesday, March 4th. Finally, Zacks Research cut Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Kontoor Brands presently has an average rating of “Moderate Buy” and a consensus target price of $91.33.

Kontoor Brands Stock Up 4.6%

The stock has a 50 day moving average of $70.18 and a 200-day moving average of $68.14. The firm has a market capitalization of $3.76 billion, a P/E ratio of 13.80 and a beta of 0.91. The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.10 and a current ratio of 1.87.

Kontoor Brands (NYSE:KTB) last announced 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). Kontoor Brands had a net margin of 8.30% and a return on equity of 60.17%. The firm had revenue of $613.32 million during the quarter, compared to the consensus estimate of $784.76 million. During the same quarter in the prior year, the firm posted $1.20 earnings per share. The company’s revenue was up 45.0% on a year-over-year basis. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. Research analysts predict that Kontoor Brands, Inc. will post 5.2 earnings per share for the current fiscal year.

Kontoor Brands Announces Dividend

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Parkside Financial Bank & Trust grew its holdings in shares of Kontoor Brands by 12.3% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,436 shares of the company’s stock worth $88,000 after purchasing an additional 157 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Kontoor Brands by 9.9% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,795 shares of the company’s stock worth $110,000 after purchasing an additional 162 shares during the last quarter. Bank of Montreal Can grew its holdings in shares of Kontoor Brands by 1.8% in the fourth quarter. Bank of Montreal Can now owns 9,297 shares of the company’s stock worth $568,000 after purchasing an additional 164 shares during the last quarter. Savant Capital LLC grew its holdings in shares of Kontoor Brands by 2.7% in the third quarter. Savant Capital LLC now owns 7,494 shares of the company’s stock worth $598,000 after purchasing an additional 199 shares during the last quarter. Finally, Stifel Financial Corp lifted its stake in Kontoor Brands by 0.8% in the fourth quarter. Stifel Financial Corp now owns 24,710 shares of the company’s stock worth $1,510,000 after acquiring an additional 199 shares during the period. Hedge funds and other institutional investors 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.