Kohl’s Corporation (NYSE: KSS) has seen its price target drop from $24.00 to $20.00, following a report by investment firm Robert W. Baird. This adjustment reflects a neutral rating on the stock, raising concerns among investors. The report, released on March 10, 2024, indicates a broader assessment of the company’s financial health amid challenging market conditions.
Several other research firms have also recently revised their ratings on Kohl’s stock. Wall Street Zen downgraded the retailer from a “buy” to a “hold” rating, while Telsey Advisory Group lowered its price target from $23.00 to $17.00, marking a shift to a “market perform” rating. Additionally, Citigroup adjusted its price objective from $23.00 to $20.00, maintaining a “neutral” rating. In contrast, Goldman Sachs Group raised its price target from $11.00 to $15.00 but issued a “sell” rating.
According to MarketBeat.com, the current consensus rating for Kohl’s stands at “Reduce,” with an average price target of approximately $14.83. The stock market response has been negative, with shares of Kohl’s declining by 0.6% following these announcements.
Quarterly Earnings Report Highlights
Kohl’s released its quarterly earnings results on March 10, 2024, reporting earnings per share (EPS) of $1.07. This figure surpassed analysts’ expectations of $0.86 by $0.21. The company generated revenues of $5.17 billion, exceeding the projected $5.08 billion. Despite this positive performance, revenue decreased by 3.9% compared to the same quarter last year.
The company has set its fiscal year 2026 EPS guidance between $1.000 and $1.600. Analysts predict an average EPS of $1.3 for the current year, reflecting ongoing financial challenges.
Dividend Announcement and Institutional Trading
In addition to the earnings report, Kohl’s announced a quarterly dividend of $0.125 per share, payable on April 1, 2024. Shareholders on record as of March 18, 2024, will receive this dividend, which translates to an annualized payout of $0.50 and a dividend yield of 3.8%. The company’s current payout ratio is approximately 21.19%.
Changes in institutional trading have also been noteworthy. ProShare Advisors LLC increased its holdings in Kohl’s by 3.1% in the fourth quarter, now owning 21,237 shares valued at $433,000. Other institutions, including Arizona State Retirement System and Guggenheim Capital LLC, have also adjusted their positions in the company, highlighting ongoing interest from institutional investors.
As it stands, hedge funds and other institutional investors control approximately 98.04% of Kohl’s stock, reflecting significant institutional confidence despite the recent downgrades.
Kohl’s Corporation, established in 1962 and headquartered in Menomonee Falls, Wisconsin, operates around 1,100 stores across 49 states. The retailer focuses on value-oriented pricing, offering a wide range of products, including apparel, footwear, accessories, and home goods. Since its public listing in 1992, Kohl’s has aimed to enhance both its product assortment and customer experience through in-store and online shopping innovations.
