Kontoor Brands (NYSE:KTB) Reaches New 12-Month High on Better-Than-Expected Earnings

Posted by Defense World Staff on Mar 2nd, 2023

Shares of Kontoor Brands, Inc. (NYSE:KTB – Get Rating) reached a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $51.05 and last traded at $50.76, with a volume of 184180 shares traded. The stock had previously closed at $43.50.

The company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.12. The company had revenue of $731.60 million during the quarter, compared to the consensus estimate of $666.78 million. Kontoor Brands had a return on equity of 143.05% and a net margin of 9.21%. Kontoor Brands’s revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.88 earnings per share.

Kontoor Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 20th. Stockholders of record on Friday, March 10th will be given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 3.72%. The ex-dividend date is Thursday, March 9th. Kontoor Brands’s dividend payout ratio is currently 46.38%.

Analysts Set New Price Targets

KTB has been the subject of a number of recent analyst reports. Wells Fargo & Company lifted their price objective on Kontoor Brands from $48.00 to $59.00 and gave the company an “overweight” rating in a research report on Wednesday. Guggenheim lowered their price objective on Kontoor Brands from $63.00 to $60.00 and set a “buy” rating for the company in a research report on Wednesday, February 15th. Stifel Nicolaus raised Kontoor Brands from a “hold” rating to a “buy” rating and lifted their price objective for the company from $44.00 to $63.00 in a research report on Tuesday. Williams Trading raised Kontoor Brands from a “hold” rating to a “buy” rating and set a $53.00 price objective for the company in a research report on Tuesday, January 31st. Finally, Barclays reduced their target price on Kontoor Brands from $40.00 to $37.00 and set an “equal weight” rating on the stock in a report on Monday, November 7th. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $51.50.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. TCTC Holdings LLC lifted its stake in shares of Kontoor Brands by 360.4% during the fourth quarter. TCTC Holdings LLC now owns 686 shares of the company’s stock worth $27,000 after purchasing an additional 537 shares in the last quarter. CWM LLC lifted its stake in shares of Kontoor Brands by 34.6% during the fourth quarter. CWM LLC now owns 867 shares of the company’s stock worth $35,000 after purchasing an additional 223 shares in the last quarter. Motco lifted its stake in shares of Kontoor Brands by 260.7% during the second quarter. Motco now owns 927 shares of the company’s stock worth $31,000 after purchasing an additional 670 shares in the last quarter. Gyon Technologies Capital Management LP acquired a new position in shares of Kontoor Brands during the fourth quarter worth about $58,000. Finally, Salem Investment Counselors Inc. lifted its stake in shares of Kontoor Brands by 146.1% during the fourth quarter. Salem Investment Counselors Inc. now owns 1,927 shares of the company’s stock worth $77,000 after purchasing an additional 1,144 shares in the last quarter.

Kontoor Brands Stock Performance

The stock has a 50 day simple moving average of $45.03 and a 200 day simple moving average of $40.77. The company has a market cap of $2.86 billion, a price-to-earnings ratio of 12.45, a PEG ratio of 1.21 and a beta of 1.18. The company has a quick ratio of 0.78, a current ratio of 2.12 and a debt-to-equity ratio of 3.96.

About Kontoor Brands

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Kontoor Brands, Inc engages in the design, manufacture, sourcing, marketing, and distribution of a portfolio of brands. It operates through the Wrangler and Lee segment. The company was founded on November 18, 2018 and is headquartered in Greensboro, NC.