Zacks Investment Research lowered shares of Michael Kors (NYSE:KORS) from a buy rating to a hold rating in a report published on Tuesday.

According to Zacks, “Shares of Michael Kors have risen and outpaced the industry 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. Strategic acquisitions such as that of Jimmy Choo for $1.35B and Versace for $2.12B 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.”

KORS has been the subject of a number of other reports. Canaccord Genuity set a $90.00 price target on shares of Michael Kors and gave the stock a buy rating in a research note on Wednesday, September 26th. Wells Fargo & Co reaffirmed a hold rating on shares of Michael Kors in a research note on Monday, September 24th. UBS Group lifted their price target on shares of Michael Kors from $70.00 to $76.00 and gave the stock a neutral rating in a research note on Friday, August 10th. Goldman Sachs Group initiated coverage on shares of Michael Kors in a research note on Monday, June 25th. They set a neutral rating and a $72.00 price target for the company. Finally, Jefferies Financial Group lifted their price target on shares of Michael Kors from $90.00 to $93.00 and gave the stock a buy rating in a research note on Wednesday, August 8th. They noted that the move was a valuation call. Eighteen equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. The stock presently has an average rating of Hold and a consensus price target of $75.93.

KORS stock opened at $63.61 on Tuesday. Michael Kors has a 12 month low of $47.21 and a 12 month high of $75.96. 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 cap of $10.24 billion, a P/E ratio of 14.07, a PEG ratio of 2.16 and a beta of 0.12.

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

In other news, CEO John D. Idol sold 150,000 shares of the business’s stock in a transaction dated Friday, July 20th. The shares were sold at an average price of $67.99, for a total value of $10,198,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Michael David Kors sold 179,920 shares of the business’s stock in a transaction dated Wednesday, August 15th. The shares were sold at an average price of $71.35, for a total transaction of $12,837,292.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 996,436 shares of company stock valued at $70,839,459. 6.00% of the stock is owned by corporate insiders.

Large investors have recently bought and sold shares of the company. AMP Capital Investors Ltd raised its holdings in shares of Michael Kors by 8.5% in the 2nd quarter. AMP Capital Investors Ltd now owns 273,946 shares of the lifestyle brand’s stock valued at $18,246,000 after purchasing an additional 21,554 shares in the last quarter. Swiss National Bank raised its holdings in shares of Michael Kors by 3.1% in the 2nd quarter. Swiss National Bank now owns 503,100 shares of the lifestyle brand’s stock valued at $33,506,000 after purchasing an additional 15,100 shares in the last quarter. Voya Investment Management LLC raised its holdings in shares of Michael Kors by 42.5% in the 2nd quarter. Voya Investment Management LLC now owns 108,969 shares of the lifestyle brand’s stock valued at $7,258,000 after purchasing an additional 32,494 shares in the last quarter. Bank of Nova Scotia raised its holdings in shares of Michael Kors by 537.5% in the 2nd quarter. Bank of Nova Scotia now owns 123,756 shares of the lifestyle brand’s stock valued at $8,241,000 after purchasing an additional 104,344 shares in the last quarter. Finally, Glen Harbor Capital Management LLC raised its holdings in shares of Michael Kors by 5.0% in the 2nd quarter. Glen Harbor Capital Management LLC now owns 208,672 shares of the lifestyle brand’s stock valued at $13,898,000 after purchasing an additional 9,904 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company’s stock.

Michael Kors Company Profile

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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