Ralph Lauren (NYSE:RL) Shares Gap Up on Earnings Beat

Ralph Lauren Corporation (NYSE:RL) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $329.24, but opened at $363.00. Ralph Lauren shares last traded at $364.6010, with a volume of 343,499 shares.

The textile maker reported $2.80 EPS for the quarter, topping analysts’ consensus estimates of $2.52 by $0.28. Ralph Lauren had a return on equity of 37.97% and a net margin of 11.73%.The company had revenue of $1.98 billion for the quarter, compared to analysts’ expectations of $1.85 billion. During the same period in the prior year, the firm earned $2.27 earnings per share. The firm’s revenue was up 16.6% compared to the same quarter last year.

Ralph Lauren Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Friday, March 27th were issued a dividend of $0.9125 per share. The ex-dividend date was Friday, March 27th. This represents a $3.65 dividend on an annualized basis and a yield of 1.0%. Ralph Lauren’s dividend payout ratio is 24.85%.

Analyst Upgrades and Downgrades

RL has been the subject of a number of recent research reports. UBS Group lifted their price target on shares of Ralph Lauren from $477.00 to $480.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Citigroup raised Ralph Lauren from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $360.00 to $400.00 in a research report on Tuesday, March 24th. Evercore set a $420.00 price target on Ralph Lauren and gave the stock an “outperform” rating in a report on Friday, February 6th. Needham & Company LLC restated a “buy” rating and set a $400.00 price target on shares of Ralph Lauren in a research note on Monday. Finally, Barclays increased their price target on shares of Ralph Lauren from $416.00 to $430.00 and gave the stock an “overweight” rating in a report on Friday, March 6th. Sixteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Ralph Lauren currently has a consensus rating of “Moderate Buy” and an average price target of $403.44.

Hedge Funds Weigh In On Ralph Lauren

Several hedge funds have recently bought and sold shares of RL. Invesco Ltd. lifted its holdings in Ralph Lauren by 26.2% in the 4th quarter. Invesco Ltd. now owns 1,324,018 shares of the textile maker’s stock valued at $468,186,000 after purchasing an additional 275,263 shares in the last quarter. Geode Capital Management LLC lifted its position in Ralph Lauren by 5.5% during the fourth quarter. Geode Capital Management LLC now owns 1,050,543 shares of the textile maker’s stock valued at $370,852,000 after buying an additional 54,686 shares in the last quarter. Orion Porfolio Solutions LLC boosted its position in Ralph Lauren by 8,937.8% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 963,340 shares of the textile maker’s stock worth $264,225,000 after purchasing an additional 952,681 shares during the period. Qube Research & Technologies Ltd boosted its position in shares of Ralph Lauren by 11.7% in the third quarter. Qube Research & Technologies Ltd now owns 941,832 shares of the textile maker’s stock worth $295,321,000 after buying an additional 98,511 shares during the period. Finally, Goldman Sachs Group Inc. boosted its holdings in Ralph Lauren by 40.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 895,017 shares of the textile maker’s stock worth $316,487,000 after acquiring an additional 255,511 shares during the period. Hedge funds and other institutional investors own 67.91% of the company’s stock.

Ralph Lauren Stock Up 10.2%

The firm has a market capitalization of $21.96 billion, a PE ratio of 24.76, a P/E/G ratio of 1.12 and a beta of 1.37. The company has a quick ratio of 1.52, a current ratio of 2.10 and a debt-to-equity ratio of 0.50. The firm’s 50 day moving average price is $352.65 and its two-hundred day moving average price is $354.72.

About Ralph Lauren

Ralph Lauren Corporation (NYSE: RL) is a global designer, marketer and distributor of premium lifestyle products under the Ralph Lauren name and a portfolio of related brands. The company, founded by Ralph Lauren in 1967 and headquartered in New York City, has grown from a single line of men’s neckties into a global lifestyle business that spans apparel, accessories and home goods.

Ralph Lauren’s product assortment includes menswear, womenswear and childrenswear along with footwear, leather goods, eyewear, fragrances and home furnishings.