Zacks Investment Research upgraded shares of Michael Kors Holdings Limited (NYSE:KORS) from a hold rating to a buy rating in a report released on Monday. The brokerage currently has $51.00 price target on the lifestyle brand’s stock.
According to Zacks, “Shares of Michael Kors took a sharp “U–turn” following the company’s positive earnings streak for the ninth straight quarter and upbeat fiscal 2018 guidance. The bullish run in the stock price helped it to outpace the industry in the past three months. Revenues also came ahead of the estimate for the second quarter in row on account of robust retail sales performance. The company now envisions fiscal 2018 total revenue to be nearly $4.275 billion, up from the previous estimate of about $4.25 billion. On the other hand, Michael Kors’ acquisition of Jimmy Choo will help diversify portfolio and tap international markets. The company has been constantly deploying resources to expand product offerings, open new stores, build shop-in-shops and upgrade eCommerce platform. We note that despite the possibility of heavy investments weighing on margins in the short term, management continues to take up strategic endeavors.”
A number of other equities analysts have also recently weighed in on KORS. BMO Capital Markets set a $38.00 price objective on Michael Kors Holdings Limited and gave the company a hold rating in a report on Tuesday, April 18th. Deutsche Bank AG decreased their price objective on Michael Kors Holdings Limited from $50.00 to $47.00 and set a buy rating on the stock in a report on Tuesday, April 25th. Jefferies Group LLC set a $65.00 price objective on Michael Kors Holdings Limited and gave the company a buy rating in a report on Friday, May 19th. Credit Suisse Group reissued a neutral rating and set a $39.00 price objective (down from $42.00) on shares of Michael Kors Holdings Limited in a report on Wednesday, May 24th. Finally, Canaccord Genuity set a $38.00 price objective on Michael Kors Holdings Limited and gave the company a hold rating in a report on Friday, May 26th. Three equities research analysts have rated the stock with a sell rating, twenty have issued a hold rating and five have issued a buy rating to the company’s stock. Michael Kors Holdings Limited presently has a consensus rating of Hold and an average price target of $42.77.
Michael Kors Holdings Limited (NYSE KORS) traded down 3.18% on Monday, hitting $41.97. The stock had a trading volume of 919,206 shares. The company has a 50-day moving average price of $37.58 and a 200-day moving average price of $37.16. Michael Kors Holdings Limited has a 1-year low of $32.38 and a 1-year high of $52.67. The stock has a market capitalization of $6.36 billion, a price-to-earnings ratio of 12.87 and a beta of 0.10.
Michael Kors Holdings Limited (NYSE:KORS) last issued its quarterly earnings results on Tuesday, August 8th. The lifestyle brand reported $0.80 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.62 by $0.18. The firm had revenue of $952.40 million during the quarter, compared to the consensus estimate of $919.18 million. Michael Kors Holdings Limited had a return on equity of 40.26% and a net margin of 11.91%. The company’s revenue for the quarter was down 3.6% on a year-over-year basis. During the same quarter last year, the company posted $0.88 EPS. Equities analysts predict that Michael Kors Holdings Limited will post $3.71 earnings per share for the current year.
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Michael Kors Holdings Limited announced that its board has approved a stock buyback program on Wednesday, May 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the lifestyle brand to repurchase up to 18.6% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s management believes its stock is undervalued.
A number of large investors have recently added to or reduced their stakes in the company. BlackRock Inc. increased its stake in Michael Kors Holdings Limited by 3,587.4% in the first quarter. BlackRock Inc. now owns 13,985,812 shares of the lifestyle brand’s stock valued at $532,997,000 after buying an additional 13,606,521 shares during the period. Flossbach Von Storch AG boosted its position in Michael Kors Holdings Limited by 12.9% in the second quarter. Flossbach Von Storch AG now owns 11,972,527 shares of the lifestyle brand’s stock valued at $434,004,000 after buying an additional 1,366,038 shares in the last quarter. FMR LLC boosted its position in Michael Kors Holdings Limited by 33.9% in the second quarter. FMR LLC now owns 4,378,144 shares of the lifestyle brand’s stock valued at $158,708,000 after buying an additional 1,107,385 shares in the last quarter. Bank of Nova Scotia boosted its position in Michael Kors Holdings Limited by 5,697.0% in the first quarter. Bank of Nova Scotia now owns 678,248 shares of the lifestyle brand’s stock valued at $25,848,000 after buying an additional 666,548 shares in the last quarter. Finally, APG Asset Management N.V. boosted its position in Michael Kors Holdings Limited by 14.9% in the first quarter. APG Asset Management N.V. now owns 4,430,974 shares of the lifestyle brand’s stock valued at $168,864,000 after buying an additional 573,062 shares in the last quarter. 84.40% of the stock is currently owned by institutional investors and hedge funds.
About Michael Kors Holdings Limited
Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The Company operates through three segments: retail, wholesale and licensing.
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