Kontoor Brands, Inc. (NYSE:KTB) Increases Dividend to $0.54 Per Share

Kontoor Brands, Inc. (NYSE:KTB) announced a quarterly dividend on Wednesday, October 21st. Stockholders of record on Tuesday, December 8th will be given a dividend of $0.54 per share on Friday, December 18th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, December 8th. This is a 1.9% increase from Kontoor Brands’s previous quarterly dividend of $0.53.

Kontoor Brands has increased its dividend by an average of 0.2% annually over the last three years and has increased its dividend annually for the last 1 consecutive years. Kontoor Brands has a payout ratio of 38.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Kontoor Brands to earn $6.34 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 33.4%.

Kontoor Brands Trading Down 2.0%

Shares of Kontoor Brands stock opened at $76.25 on Friday. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.83 and a quick ratio of 0.99. The firm has a fifty day moving average price of $71.28 and a 200 day moving average price of $74.93. Kontoor Brands has a 1 year low of $56.19 and a 1 year high of $88.96. The stock has a market cap of $4.17 billion, a PE ratio of 15.95 and a beta of 0.87.

Kontoor Brands (NYSE:KTB) last posted its quarterly earnings results on Wednesday, August 12th. The company reported $1.06 EPS for the quarter, beating the consensus estimate of $1.05 by $0.01. The company had revenue of $584.29 million for the quarter, compared to analyst estimates of $586.95 million. Kontoor Brands had a net margin of 8.21% and a return on equity of 59.71%. The firm’s revenue was down 11.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.33 earnings per share. Kontoor Brands has set its FY 2026 guidance at 5.250-5.350 EPS. Equities research analysts predict that Kontoor Brands will post 5.27 earnings per share for the current year.

Insider Activity

In related news, CEO Scott H. Baxter sold 184,403 shares of the company’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $83.40, for a total value of $15,379,210.20. Following the completion of the transaction, the chief executive officer owned 261,786 shares of the company’s stock, valued at approximately $21,832,952.40. This represents a 41.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Thomas L. Doerr, Jr. sold 7,660 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $83.43, for a total value of $639,073.80. Following the transaction, the executive vice president owned 25,063 shares in the company, valued at $2,091,006.09. This represents a 23.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in Kontoor Brands during the second quarter valued at $674,664,000. Dimensional Fund Advisors LP raised its holdings in shares of Kontoor Brands by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,268,336 shares of the company’s stock valued at $89,132,000 after acquiring an additional 6,477 shares during the last quarter. Jennison Associates LLC raised its holdings in shares of Kontoor Brands by 0.9% during the first quarter. Jennison Associates LLC now owns 1,225,371 shares of the company’s stock valued at $86,131,000 after acquiring an additional 10,540 shares during the last quarter. Janus Henderson Group PLC lifted its position in shares of Kontoor Brands by 34.1% in the first quarter. Janus Henderson Group PLC now owns 564,955 shares of the company’s stock valued at $39,730,000 after acquiring an additional 143,749 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Kontoor Brands in the 2nd quarter valued at $45,003,000. 93.06% of the stock is owned by institutional investors and hedge funds.

Kontoor Brands Company Profile

Kontoor Brands, Inc (NYSE: KTB) is a global lifestyle apparel company focused on denim and casualwear. Its portfolio includes the Wrangler and Lee brands, as well as Rock & Republic, offering jeans, shirts, jackets, tops, bottoms, accessories and related products for men, women and children.

The company sells its products through wholesale customers, including department stores, specialty retailers and mass merchants, as well as through company-operated stores and e-commerce channels. Kontoor serves consumers in North America and international markets, with products distributed across multiple regions worldwide.

Kontoor Brands became an independent publicly traded company in 2019 following its separation from VF Corporation.