Kontoor Brands Inc. (NYSE: KTB): Stock That Needs Special Handling

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SSgA Funds Management, Inc. recently announced the acquisition of new stake in Kontoor Brands Inc. (NYSE:KTB). The institutional investor has increased its shareholding in the Consumer Cyclical company by 5.93% to 10.44 million shares with purchase of 0.58 million shares. This fresh investment now brings its stake to 18.28% valued currently at $152.64 million. In addition, Capital Research & Management Co. raised its holdings by 0.24 million to 6.98 million shares. And The Vanguard Group, Inc. has lifted its position by 4.67% or 0.28 million shares – to 6.22 million shares.

With over 0.51 million Kontoor Brands Inc. (KTB) shares trading Tuesday and a closing price of $16.90 on the day, the dollar volume was approximately $8.65 million. The shares have shown a negative weekly performance of -4.41% and its price on 07/07/20 lost nearly -3.32%. Currently, there are 56.88M common shares owned by the public and among those 52.58M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for KTB have a consensus price objective of $21.38. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kontoor Brands Inc. stock is 2.90 for the next 12 months. The average price target is 14.78% above its last price level and an upside to the estimated low will see the stock lose -181.67% over that period. But an upside of 43.67% will see the stock hit the forecast high price target while mean target price for the stock is $21.00.

Insiders at the company have transacted a total of 48 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 37 of these insider trades were purchases, accounting for 294,586 shares. Insider sales of the common stock occurred on 11 occasions, with total insider shares sold totaling 43,504 shares.

The top 3 mutual fund holders in Kontoor Brands Inc. are American Funds Insurance Series -, iShares Core S&P Small Cap ETF, and American Funds Small Cap World Fu. American Funds Insurance Series – owns 3.49 million shares of the company’s stock, all valued at over $51.02 million. The company bought an additional 0.24 million shares recently to bring their total holdings to about 6.11% of the shares outstanding. iShares Core S&P Small Cap ETF bought 1240.0 shares to see its total holdings expand to 2.8 million shares valued at over $40.94 million and representing 4.90% of the shares outstanding. American Funds Small Cap World Fu has total holdings to over 1.91 million shares at a value of $27.92 million. American Funds Small Cap World Fu now owns shares totaling to 3.35% of the shares outstanding.

Shares of Kontoor Brands Inc. (NYSE: KTB) opened at $17.15, down -$0.33 from a prior closing price of $17.48. However, the script later closed the day at $16.90, down -3.32%. The company’s stock has a 5-day price change of -4.41% and 12.07% over the past three months. KTB shares are trading -59.75% year to date (YTD), with the 12-month market performance down to -45.13% lower. It has a 12-month low price of $12.90 and touched a high of $43.24 over the same period. Currently, 0.51 million shares have been traded, compared to an average intraday trading volume of 1.68 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -8.46%, -5.01%, and -44.40% respectively.

Institutional ownership of Kontoor Brands Inc. (NYSE: KTB) shares is 56.88M shares outstanding. Mutual fund holders own 44.04%, while other institutional holders and individual stakeholders account for 54.61% and 0.93% respectively.

It has a market capitalization of $968.37M. The stock’s trailing 12-month PE ratio is 12.34, while the earnings-per-share (ttm) stands at $1.37. The company has a Quick Ratio of 2.10. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.88% over the week and 7.27% over the month.

Analysts forecast that Kontoor Brands Inc. (KTB) will achieve an EPS of -$0.49 for the current quarter, $0.58 for the next quarter and $2.64 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.98 while analysts give the company a high EPS estimate of -$0.2. Comparatively, EPS for the current quarter was $0.96 a year ago. Earnings per share for the fiscal year are expected to decrease by -64.20%, and 123.88% over the next financial year. EPS should be at an annualized rate of -7.50% over the next five years.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Kontoor Brands Inc. (KTB) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 2 of the 8 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the KTB, a number of firms have released research notes about the stock. Exane BNP Paribas stated their Underperform rating for the stock in a research note on June 16, 2020. Susquehanna coverage for the Kontoor Brands Inc. (KTB) stock in a research note released on June 05, 2020 offered a Positive rating with a price target of. Piper Sandler was of a view on June 03, 2020 that the stock is Overweight, while Susquehanna gave the stock Neutral rating on April 29, 2020. Goldman on their part issued Sell rating on March 25, 2020.

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