Kontoor Brands (NYSE:KTB) Reaches New 1-Year High – Should You Buy?

Kontoor Brands, Inc. (NYSE:KTB)’s stock price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $93.54 and last traded at $93.26, with a volume of 21332 shares trading hands. The stock had previously closed at $91.38.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on KTB shares. Barclays lifted their price objective on Kontoor Brands from $83.00 to $100.00 and gave the stock an “overweight” rating in a report on Friday, November 1st. Stifel Nicolaus downgraded Kontoor Brands from a “buy” rating to a “hold” rating and lifted their price objective for the stock from $89.00 to $93.00 in a report on Friday, November 1st. Guggenheim boosted their price target on Kontoor Brands from $80.00 to $100.00 and gave the company a “buy” rating in a report on Friday, November 1st. Wells Fargo & Company boosted their price target on Kontoor Brands from $80.00 to $90.00 and gave the company an “overweight” rating in a report on Wednesday, October 23rd. Finally, UBS Group boosted their price target on Kontoor Brands from $103.00 to $110.00 and gave the company a “buy” rating in a report on Friday, November 1st. Two equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $95.00.

Kontoor Brands Price Performance

The company has a current ratio of 2.50, a quick ratio of 1.42 and a debt-to-equity ratio of 2.09. The firm has a market cap of $5.16 billion, a PE ratio of 20.58, a price-to-earnings-growth ratio of 2.36 and a beta of 1.19. The stock has a 50 day simple moving average of $82.53 and a 200-day simple moving average of $74.38.

Kontoor Brands (NYSE:KTB) last issued its quarterly earnings data on Thursday, October 31st. The company reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates of $1.26 by $0.11. The firm had revenue of $670.19 million during the quarter, compared to analyst estimates of $663.45 million. Kontoor Brands had a return on equity of 73.99% and a net margin of 9.72%. The business’s quarterly revenue was up 2.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.22 earnings per share. Equities analysts anticipate that Kontoor Brands, Inc. will post 4.83 earnings per share for the current fiscal year.

Kontoor Brands Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 19th. Shareholders of record on Monday, December 9th will be issued a $0.52 dividend. This is a positive change from Kontoor Brands’s previous quarterly dividend of $0.50. This represents a $2.08 annualized dividend and a yield of 2.22%. The ex-dividend date is Monday, December 9th. Kontoor Brands’s payout ratio is currently 45.05%.

Insider Activity

In other Kontoor Brands news, CEO Scott H. Baxter sold 119,160 shares of the company’s stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $83.60, for a total value of $9,961,776.00. Following the completion of the transaction, the chief executive officer now owns 331,916 shares in the company, valued at approximately $27,748,177.60. This represents a 26.42 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Thomas L. Doerr, Jr. sold 9,039 shares of the company’s stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $80.71, for a total transaction of $729,537.69. Following the completion of the transaction, the executive vice president now owns 18,179 shares of the company’s stock, valued at approximately $1,467,227.09. This trade represents a 33.21 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 2.50% of the company’s stock.

Institutional Trading of Kontoor Brands

Several hedge funds have recently made changes to their positions in KTB. GAMMA Investing LLC grew its position in shares of Kontoor Brands by 53.5% in the 3rd quarter. GAMMA Investing LLC now owns 700 shares of the company’s stock valued at $57,000 after buying an additional 244 shares during the last quarter. International Assets Investment Management LLC raised its position in Kontoor Brands by 8,078.0% during the third quarter. International Assets Investment Management LLC now owns 28,623 shares of the company’s stock worth $2,341,000 after acquiring an additional 28,273 shares during the last quarter. Sei Investments Co. raised its position in Kontoor Brands by 78.9% during the second quarter. Sei Investments Co. now owns 52,658 shares of the company’s stock worth $3,483,000 after acquiring an additional 23,223 shares during the last quarter. Aigen Investment Management LP acquired a new position in shares of Kontoor Brands in the third quarter valued at approximately $1,002,000. Finally, American Century Companies Inc. grew its holdings in Kontoor Brands by 48.7% in the second quarter. American Century Companies Inc. now owns 36,081 shares of the company’s stock valued at $2,387,000 after purchasing an additional 11,810 shares during the period. Hedge funds and other institutional investors own 93.06% of the company’s stock.

Kontoor Brands Company Profile

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.