Kontoor Brands (NYSE:KTB) Shares Down 5% – Time to Sell?

Shares of Kontoor Brands, Inc. (NYSE:KTB) traded down 5% during trading on Wednesday . The stock traded as low as $71.07 and last traded at $70.91. 394,469 shares traded hands during trading, a decline of 51% from the average daily volume of 796,964 shares. The stock had previously closed at $74.64.

Analyst Ratings Changes

Several research firms recently commented on KTB. BTIG Research boosted their price objective on shares of Kontoor Brands from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. JPMorgan Chase & Co. upped their price target on Kontoor Brands from $90.00 to $105.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 4th. Wells Fargo & Company increased their price objective on Kontoor Brands from $100.00 to $110.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. UBS Group lifted their price objective on shares of Kontoor Brands from $131.00 to $136.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Finally, Weiss Ratings downgraded Kontoor Brands from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Kontoor Brands currently has a consensus rating of “Moderate Buy” and an average price target of $95.00.

Kontoor Brands Price Performance

The company has a quick ratio of 0.99, a current ratio of 1.83 and a debt-to-equity ratio of 1.82. The stock’s 50 day moving average price is $82.33 and its two-hundred day moving average price is $75.20. The stock has a market cap of $4.02 billion, a price-to-earnings ratio of 15.35 and a beta of 0.87.

Kontoor Brands (NYSE:KTB) last posted its earnings results on Wednesday, August 12th. The company reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.05 by $0.01. Kontoor Brands had a net margin of 8.21% and a return on equity of 59.71%. The company had revenue of $584.29 million during the quarter, compared to the consensus estimate of $586.95 million. During the same period in the previous year, the firm posted $1.33 earnings per share. The firm’s quarterly revenue was down 11.2% on a year-over-year basis. Kontoor Brands has set its FY 2026 guidance at 5.250-5.350 EPS. Equities research analysts forecast that Kontoor Brands, Inc. will post 5.27 EPS for the current fiscal year.

Kontoor Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, September 8th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 8th. Kontoor Brands’s payout ratio is 44.26%.

Insider Transactions at Kontoor Brands

In related news, CEO Scott Baxter sold 184,403 shares of the firm’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $83.40, for a total transaction of $15,379,210.20. Following the sale, the chief executive officer directly owned 261,786 shares of the company’s stock, valued at $21,832,952.40. This trade represents a 41.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Thomas Doerr, Jr. sold 7,660 shares of Kontoor Brands stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $83.43, for a total value of $639,073.80. Following the transaction, the executive vice president owned 25,063 shares of the company’s stock, valued at approximately $2,091,006.09. This represents a 23.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 196,063 shares of company stock worth $16,342,364 over the last quarter. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kontoor Brands

Institutional investors have recently made changes to their positions in the company. Royal Bank of Canada boosted its holdings in Kontoor Brands by 29.1% during the first quarter. Royal Bank of Canada now owns 105,895 shares of the company’s stock worth $6,793,000 after buying an additional 23,880 shares in the last quarter. AQR Capital Management LLC increased its holdings in Kontoor Brands by 49.3% in the first quarter. AQR Capital Management LLC now owns 14,641 shares of the company’s stock valued at $939,000 after buying an additional 4,836 shares in the last quarter. Integrated Wealth Concepts LLC raised its position in shares of Kontoor Brands by 250.8% in the first quarter. Integrated Wealth Concepts LLC now owns 9,388 shares of the company’s stock worth $602,000 after acquiring an additional 6,712 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Kontoor Brands by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,779 shares of the company’s stock worth $2,102,000 after acquiring an additional 1,432 shares during the period. Finally, Millennium Management LLC boosted its stake in shares of Kontoor Brands by 222.5% during the 1st quarter. Millennium Management LLC now owns 156,332 shares of the company’s stock worth $10,026,000 after acquiring an additional 107,855 shares in the last quarter. 93.06% of the stock is owned by hedge funds and other 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.