The financial market is a complex environment that requires a high degree of skill and expertise to navigate. One company that has been making headlines lately is Kontoor Brands, Inc. (NYSE:KTB), which recently saw a decrease in its stake from one investor.
Principal Financial Group Inc. reduced its stake in Kontoor Brands by 2.7% during the fourth quarter, according to the company’s most recent 13F filing with the Securities and Exchange Commission. The firm owned over 300,000 shares of Kontoor Brands worth $12,197,000 as of its latest SEC filing.
Despite this reduction in ownership, Kontoor Brands recently reported strong earnings for the first quarter of 2021. The company had revenue of $667.10 million during the quarter, beating analysts’ expectations by cementing an impressive net margin of 8.82%. However, the first-quarter revenue was down 1.9% on a year-over-year basis.
Kontoor Brands has been scrutinized closely by Wall Street analysts in recent months and received mixed ratings from various firms within the industry. Barclays lowered their target price on Kontoor Brands from $51 to $45 per share, whereas Wells Fargo & Company raised their price objective on KTB from $48 to $59 and gave the company an “overweight” rating.
The Goldman Sachs Group also raised their price objective on Kontoor Brands from $41 to $47 and gave the company a “neutral” rating while UBS Group decreased their price objective on KTB from $66 to $65 per share but still managed to put out a “buy” rating for investors.
In summary, despite facing some minor headwinds with significant shareholder reduction by Principal Financial Group Inc., Kontoor’s performance impressed several players within the financial landscape leading them not being able to come into an agreement regarding their recommendations as far as investment is concerned about the company. Kontoor Brands continues to be a company of interest setting its foot strong in the market.
Investment Firms Increase Holdings in Kontoor Brands Inc. Despite Insider Trading Activity
Kontoor Brands Inc. (NYSE:KTB), a fashion company that designs and sells clothing and apparel under various brands, has seen a number of large investors modify their holdings of the company. MAI Capital Management purchased a new stake in the company during the fourth quarter worth approximately $224,000, while Citigroup increased their stake by 20.7% and now owns 34,120 shares of the company’s stock worth $1,364,000 after buying an additional 5,855 shares during the period. UBS Group also raised its stake in Kontoor Brands by 123.3% during the same period. Prime Capital Investment Advisors LLC increased its holdings by 12.7%, meanwhile Swiss National Bank added an additional 700 shares to their existing holdings.
Shares of KTB are currently trading at $40.28 on the New York Stock Exchange with a market capitalization of $2.26 billion. The company reported a 52-week low of $30.98 and a high of $53.83 alongside a P/E ratio of 9.92 and price-to-earnings-growth ratio of 1.07.
The firm recently received several research reports on its business operations from Barclays, Guggenheim Securities LLC, Wells Fargo & Company, The Goldman Sachs Group, and UBS Group AG after disclosing quarterly dividends totaling $0.48 per share to be paid this June.
COO’s Thomas E Waldron and Christopher Waldeck both sold company stock holdings in mid-March raising alarms that led many analysts to question whether another insider trade was coming soon.
Despite these fluctuations in the market and recent reports regarding insider trading activity at Kontoor Brands Inc., several investment firms continue to recommend purchasing shares as part of a long-term hold strategy.#
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