Michael Kors (KORS) Upgraded at Zacks Investment Research

Zacks Investment Research upgraded shares of Michael Kors (NYSE:KORS) from a sell rating to a hold rating in a research note released on Friday.

According to Zacks, “Shares of Michael Kors have surged in a year. The company has been constantly deploying resources to expand product offerings, build “shop-in-shops”, and upgrade distribution infrastructure. This along with the “Runway 2020” plan, cost containment efforts, inventory management, focus on e-commerce platform and accretive buyouts bode well. The strategic acquisitions such as that of Jimmy Choo and Versace strengthens Michael Kors’ ambition to become a global luxury player. Management stated that the addition of Versace will help augment group’s revenues to $8 billion in the long term. However, the buyout is likely to dilute earnings per share in the high-single digits in fiscal 2020 but is expected to be accretive in the low-single digits in fiscal 2021 and again in high-single digits in fiscal 2022. Upon the completion of the buyout, Michael Kors will be renamed as Capri Holdings Limited.”

A number of other equities analysts also recently weighed in on KORS. Credit Suisse Group upped their price target on Michael Kors from $72.00 to $75.00 and gave the stock an outperform rating in a research report on Thursday, August 9th. Robert W. Baird upped their price target on Michael Kors from $72.00 to $75.00 and gave the stock a neutral rating in a research report on Thursday, August 9th. Citigroup upped their price target on Michael Kors from $69.00 to $79.00 and gave the stock a neutral rating in a research report on Thursday, August 9th. Barclays upped their price target on Michael Kors from $73.00 to $76.00 and gave the stock an equal weight rating in a research report on Thursday, August 9th. Finally, UBS Group upped their price target on Michael Kors from $70.00 to $76.00 and gave the stock a neutral rating in a research report on Friday, August 10th. Eighteen investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $75.52.



Shares of KORS stock opened at $55.05 on Friday. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.37 and a quick ratio of 0.63. The stock has a market capitalization of $8.31 billion, a PE ratio of 12.34, a P/E/G ratio of 1.75 and a beta of 0.12. Michael Kors has a one year low of $47.49 and a one year high of $75.96.

Michael Kors (NYSE:KORS) last issued its quarterly earnings data on Wednesday, August 8th. The lifestyle brand reported $1.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.95 by $0.37. Michael Kors had a return on equity of 39.01% and a net margin of 13.14%. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same period in the previous year, the firm earned $0.80 EPS. Michael Kors’s quarterly revenue was up 26.3% compared to the same quarter last year. As a group, sell-side analysts expect that Michael Kors will post 5.02 earnings per share for the current fiscal year.

In related news, insider Michael David Kors sold 179,920 shares of the stock in a transaction on Wednesday, August 15th. The stock was sold at an average price of $71.35, for a total value of $12,837,292.00. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO John D. Idol sold 150,000 shares of the stock in a transaction on Tuesday, August 14th. The shares were sold at an average price of $73.24, for a total value of $10,986,000.00. The disclosure for this sale can be found here. In the last three months, insiders sold 846,436 shares of company stock valued at $60,640,959. 6.00% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Nissay Asset Management Corp Japan ADV raised its stake in Michael Kors by 5.1% in the 2nd quarter. Nissay Asset Management Corp Japan ADV now owns 16,121 shares of the lifestyle brand’s stock valued at $1,074,000 after acquiring an additional 780 shares during the period. LMR Partners LLP raised its stake in Michael Kors by 19.5% in the 2nd quarter. LMR Partners LLP now owns 5,072 shares of the lifestyle brand’s stock valued at $338,000 after acquiring an additional 827 shares during the period. World Asset Management Inc raised its stake in Michael Kors by 9.2% in the 2nd quarter. World Asset Management Inc now owns 10,631 shares of the lifestyle brand’s stock valued at $708,000 after acquiring an additional 896 shares during the period. Fulton Bank N.A. raised its stake in Michael Kors by 7.9% in the 3rd quarter. Fulton Bank N.A. now owns 12,588 shares of the lifestyle brand’s stock valued at $863,000 after acquiring an additional 918 shares during the period. Finally, Fjarde AP Fonden Fourth Swedish National Pension Fund raised its stake in Michael Kors by 2.2% in the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 43,154 shares of the lifestyle brand’s stock valued at $2,874,000 after acquiring an additional 934 shares during the period. Institutional investors and hedge funds own 86.41% of the company’s stock.

About Michael Kors

Michael Kors Holdings Limited design, markets, distributes, and retails branded women's and men's apparel and accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK Retail segment sells women's apparel; handbags and small leather goods; men's apparel; footwear; and licensed products comprising watches, jewelry, fragrances, and beauty and eyewear.

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