Stock Traders Purchase Large Volume of Kontoor Brands Call Options (NYSE:KTB)

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Kontoor Brands, Inc. (NYSE:KTB) saw some unusual options trading on Monday. Stock investors bought 3,073 call options on the stock. This is an increase of 1,870% compared to the average volume of 156 call options.

Several brokerages have commented on KTB. BidaskClub lowered Kontoor Brands from a “buy” rating to a “hold” rating in a report on Thursday, December 31st. Zacks Investment Research downgraded Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, December 30th. Piper Sandler raised their target price on Kontoor Brands from $29.00 to $36.00 in a research report on Tuesday, October 13th. The Goldman Sachs Group downgraded Kontoor Brands from a “buy” rating to a “neutral” rating and raised their target price for the company from $38.00 to $42.00 in a research report on Thursday, December 10th. Finally, Bank of America upgraded Kontoor Brands from an “underperform” rating to a “buy” rating and raised their target price for the company from $17.00 to $38.00 in a research report on Monday, October 26th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $34.20.

Kontoor Brands stock traded up $1.07 during trading on Monday, reaching $43.91. 12,618 shares of the company were exchanged, compared to its average volume of 472,140. Kontoor Brands has a 52-week low of $12.90 and a 52-week high of $47.14. The company has a market capitalization of $2.51 billion, a P/E ratio of 47.72, a PEG ratio of 3.09 and a beta of 1.12. The company has a debt-to-equity ratio of 39.25, a current ratio of 2.21 and a quick ratio of 1.27. The stock’s 50 day simple moving average is $42.53 and its two-hundred day simple moving average is $28.81.

Kontoor Brands (NYSE:KTB) last posted its earnings results on Thursday, October 29th. The company reported $1.33 EPS for the quarter, beating the Zacks’ consensus estimate of $0.58 by $0.75. Kontoor Brands had a return on equity of 1,685.31% and a net margin of 2.56%. The company had revenue of $583.00 million for the quarter, compared to the consensus estimate of $549.10 million. During the same quarter in the previous year, the business earned $0.95 earnings per share. The company’s revenue for the quarter was down 8.6% on a year-over-year basis. As a group, equities analysts forecast that Kontoor Brands will post 2.36 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, December 18th. Shareholders of record on Thursday, December 10th were given a $0.40 dividend. The ex-dividend date of this dividend was Wednesday, December 9th. This represents a $1.60 dividend on an annualized basis and a yield of 3.64%. Kontoor Brands’s dividend payout ratio is currently 41.67%.

A number of large investors have recently bought and sold shares of the business. Jennison Associates LLC raised its position in Kontoor Brands by 127.7% in the third quarter. Jennison Associates LLC now owns 1,619,390 shares of the company’s stock valued at $39,189,000 after purchasing an additional 908,277 shares during the period. Victory Capital Management Inc. raised its position in Kontoor Brands by 13.2% in the third quarter. Victory Capital Management Inc. now owns 842,982 shares of the company’s stock valued at $20,400,000 after purchasing an additional 98,447 shares during the period. Artemis Investment Management LLP purchased a new stake in Kontoor Brands in the third quarter valued at $16,770,000. Arrowstreet Capital Limited Partnership raised its position in Kontoor Brands by 3.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 658,052 shares of the company’s stock valued at $15,925,000 after purchasing an additional 20,879 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in Kontoor Brands by 9.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 650,377 shares of the company’s stock valued at $15,740,000 after purchasing an additional 54,284 shares during the period. Institutional investors own 85.07% of the company’s stock.

About Kontoor Brands

Kontoor Brands, Inc, a lifestyle apparel company, designs, manufactures, sources, markets, and distributes apparel under the Wrangler and Lee brands in the United States and internationally. The company sells its products primarily through mass and mid-tier retailers, specialty stores, department stores, and retailer-owned and third-party e-commerce sites, as well as through direct-to-consumer channels, including full-price stores, outlet stores, and its websites.

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