Quashing Negative Opinions About Kohl’s Corporation (KSS)

On December 03, 2019, Kohl’s Corporation (NYSE:KSS) shares lost -1.88% or -0.88 points to close at $45.94 with a thin trading volume of 3.946 million shares. It opened the trading session at $46.33, the shares rose to $46.39 and dropped to $45.53, the range by which the price of stock traded the whole day. The company now has a market cap of $7.51 billion and currently has 163.56 million outstanding shares. Kohl’s Corporation (KSS) stock has plunged -11.81 percent of market value in 21 trading days.

KSS stock’s trailing 3-year beta is 1.02, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $4.36 share in the trailing 52 weeks. The stock’s value fallen -30.75 percent year to date (YTD) compared to a decline of -31.61 percent in 52 week’s period. The firm’s shares are still trading -39.48 percent below its 1-year high of $75.91 and 6.02 percent up from 52-week low of $43.33. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Kohl’s Corporation (KSS) is most likely going to rise 9.36 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $65-month high price target. This represents a whopping 41.49 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $49, which means a return possibility of 6.66 percent in comparison with the closing price of the stock of $45.94 on December 03. The lowest price set for the stock is $40 — just above -12.93 percent from KSS share price now.

Past records have indicated that shares in Kohl’s Corporation declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of KSS’s Q4 earnings on February 25. Analysts are predicting revenue to climb 0.4 percent to $6.56B in the financial fourth quarter, while EPS will soar by about -12.5 percent to $1.96 per share. In the last quarter, it earnings of $0.74 per share came worse than the $1.98203, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $6.54B, missing the $6.55B analysts had expected. Earnings are seen to rise by 12.8 percent this year, 0.25 percent in the coming year and the trend continues by -4.96 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Kohl’s Corporation (NYSE:KSS) and observe the pattern. The earliest insider trade happened on 09/26/2018. Chawla Sona parted with a total of 10 thousand shares of the firm at average share price of $74.69. The total amount for the sale was set at $746.9 thousand. On completing this exchange, the President account balance was 214.16 thousand shares. The stock lost -37.31 percent from that insider sale. On 09/05/2018, STREETER STEPHANIE A, Director, did a sale of 4.78 thousand shares at a price of $81.5 per share. This got rid of 389.24 thousand shares from the insider’s fortune and the stock experienced a -42.55 percent retreat in price since the news became public. This exchange saw 20.08 thousand shares get out from the Director account.

On 09/05/2018, President Chawla Sona recorded a sale transaction valued at $2.2 million. The sale at $80.92 a share has eliminated 27.22 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -42.14 percent decrease since the transaction reporting date. The company insider is left with 239.85 thousand shares remaining in the account. LAVU RATNAKAR, who works as Sr. EVP, Chief Tech. Officer at the company, performed a sale of 12.21 thousand shares in a transaction worth $1 million. The disposal recorded on 09/04/2018 was priced at $82 per share. The stock price plunged -42.9 percent since the transaction. LAVU RATNAKAR currently holds a stake of 89.04 thousand in KSS stock which is worth $4.09 million after the insider selling.

The stock is lingering around the initial support level of $45.52. After this, the following support is at the zone of $45.09. Up until the time the KSS stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 34.97 on the daily chart, and this may be a cause for comfort. In case the price goes below $45.09 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $46.38 level may cause a pull-back move approaching $46.81 mark.

Kohl’s Corporation (KSS) shares are trading at a P/E ratio of 10.6 times earnings posted in the trailing 12 months. The industry KSS deals with has an average P/E of 10.3. Its P/B ratio is standing at 1.4X compared to the 1.4 industry average. It is additionally sporting a 0.4 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.3. Kohl’s Corporation has a 39.5% gross profit margin, with its operating margin around 6.3%. Alongside this, the company’s net profit margin currently stands at 3.9%.