Kontoor Brands (NYSE:KTB) Sets New 52-Week High After Strong Earnings

Kontoor Brands, Inc. (NYSE:KTB)’s stock price reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $84.88 and last traded at $83.73, with a volume of 6336 shares trading hands. The stock had previously closed at $76.56.

The company reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.12. The company had revenue of $670.19 million for the quarter, compared to analysts’ expectations of $663.45 million. Kontoor Brands had a return on equity of 72.43% and a net margin of 9.35%. The firm’s revenue was up 2.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.22 earnings per share.

Kontoor Brands Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 19th. Investors of record on Monday, December 9th will be given a $0.52 dividend. This is a positive change from Kontoor Brands’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Monday, December 9th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 2.55%. Kontoor Brands’s dividend payout ratio (DPR) is 46.85%.

Analyst Upgrades and Downgrades

A number of research firms have commented on KTB. Guggenheim upped their price objective on shares of Kontoor Brands from $80.00 to $100.00 and gave the company a “buy” rating in a research note on Friday. Wells Fargo & Company upped their price target on shares of Kontoor Brands from $80.00 to $90.00 and gave the company an “overweight” rating in a research report on Wednesday, October 23rd. UBS Group boosted their target price on shares of Kontoor Brands from $103.00 to $110.00 and gave the company a “buy” rating in a research note on Friday. Stifel Nicolaus cut Kontoor Brands from a “buy” rating to a “hold” rating and raised their target price for the stock from $89.00 to $93.00 in a research report on Friday. Finally, Barclays upped their price target on Kontoor Brands from $83.00 to $100.00 and gave the company an “overweight” rating in a research report on Friday. Two research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Kontoor Brands currently has a consensus rating of “Moderate Buy” and an average price target of $95.00.

Institutional Trading of Kontoor Brands

Institutional investors have recently bought and sold shares of the company. O Shaughnessy Asset Management LLC raised its stake in shares of Kontoor Brands by 44.3% during the 1st quarter. O Shaughnessy Asset Management LLC now owns 24,311 shares of the company’s stock worth $1,465,000 after purchasing an additional 7,466 shares in the last quarter. Magnetar Financial LLC acquired a new position in Kontoor Brands in the first quarter worth approximately $1,508,000. Capstone Investment Advisors LLC bought a new position in Kontoor Brands during the first quarter valued at approximately $2,013,000. Sei Investments Co. lifted its stake in Kontoor Brands by 78.9% in the second quarter. Sei Investments Co. now owns 52,658 shares of the company’s stock valued at $3,483,000 after acquiring an additional 23,223 shares during the last quarter. Finally, American Century Companies Inc. grew its position in Kontoor Brands by 48.7% in the second quarter. American Century Companies Inc. now owns 36,081 shares of the company’s stock worth $2,387,000 after acquiring an additional 11,810 shares in the last quarter. Institutional investors and hedge funds own 93.06% of the company’s stock.

Kontoor Brands Trading Down 4.6 %

The company has a market cap of $4.55 billion, a price-to-earnings ratio of 18.39, a price-to-earnings-growth ratio of 1.99 and a beta of 1.20. The company’s 50 day moving average price is $77.81 and its 200 day moving average price is $71.34. The company has a debt-to-equity ratio of 2.04, a quick ratio of 1.43 and a current ratio of 2.74.

About Kontoor Brands

Kontoor Brands, Inc, a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name.