Kontoor Brands (NYSE:KTB) Sets New 52-Week High – Time to Buy?

Kontoor Brands, Inc. (NYSE:KTB)’s stock price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $88.96 and last traded at $87.9820, with a volume of 81413 shares. The stock had previously closed at $87.79.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Zacks Research raised Kontoor Brands from a “strong sell” rating to a “hold” rating in a report on Thursday, July 9th. JPMorgan Chase & Co. started coverage on Kontoor Brands in a research report on Monday, June 8th. They set an “overweight” rating and a $90.00 target price for the company. Wall Street Zen lowered Kontoor Brands from a “strong-buy” rating to a “hold” rating in a report on Saturday, May 9th. Barclays raised their price target on Kontoor Brands from $93.00 to $96.00 and gave the stock an “overweight” rating in a research report on Monday, May 11th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $100.00 price target on shares of Kontoor Brands in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $91.20.

Kontoor Brands Price Performance

The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.10 and a current ratio of 1.87. The company has a market cap of $4.81 billion, a price-to-earnings ratio of 17.61 and a beta of 0.87. The business has a fifty day moving average price of $76.00 and a 200 day moving average price of $70.36.

Kontoor Brands (NYSE:KTB) last released its quarterly earnings data 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 8.30% and a return on equity of 60.17%. The business had revenue of $613.32 million during the quarter, compared to analyst estimates of $784.76 million. During the same period last year, the business earned $1.20 earnings per share. The business’s quarterly revenue was up 45.0% compared to the same quarter last year. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. As a group, research analysts anticipate that Kontoor Brands, Inc. will post 5.2 earnings per share for the current year.

Kontoor Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Monday, June 8th were issued a $0.53 dividend. The ex-dividend date of this dividend was Monday, June 8th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.4%. Kontoor Brands’s dividend payout ratio is 42.91%.

Insider Buying and Selling at Kontoor Brands

In related news, EVP Jennifer H. Broyles sold 4,000 shares of Kontoor Brands stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $81.02, for a total transaction of $324,080.00. Following the sale, the executive vice president directly owned 40,261 shares of the company’s stock, valued at approximately $3,261,946.22. The trade was a 9.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Kontoor Brands

A number of institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. lifted its stake in Kontoor Brands by 15.8% in the 4th quarter. JPMorgan Chase & Co. now owns 3,019,204 shares of the company’s stock valued at $184,443,000 after purchasing an additional 413,005 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Kontoor Brands by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 1,419,700 shares of the company’s stock worth $86,741,000 after buying an additional 13,725 shares during the last quarter. Morgan Stanley grew its stake in shares of Kontoor Brands by 8.8% during the fourth quarter. Morgan Stanley now owns 1,283,592 shares of the company’s stock worth $78,415,000 after buying an additional 104,296 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Kontoor Brands by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,268,336 shares of the company’s stock worth $89,132,000 after buying an additional 6,477 shares during the last quarter. Finally, Jennison Associates LLC increased its holdings in shares of Kontoor Brands by 0.9% during the first quarter. Jennison Associates LLC now owns 1,225,371 shares of the company’s stock worth $86,131,000 after buying an additional 10,540 shares in the last quarter. 93.06% of the stock is currently owned by institutional investors and hedge funds.

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.