Scott H. Baxter (NYSE:BAX), the Chair, President, and CEO of Kontoor Brands , Inc. (NYSE:NYSE:KTB), a leading apparel company, has sold a significant portion of his company stock, according to recent filings. Baxter sold shares totaling over $7.8 million, with the transactions occurring on May 28 and 29, 2024.
The sales were executed in multiple transactions with prices ranging from $71.522 to $72.788 per share. Specifically, on May 28, Baxter sold 74,571 shares at an average price of $71.763, with the price range being between $71.50 to $72.47. The following day, he sold 6,309 shares at an average price of $72.788, with individual prices ranging from $72.50 to $73.0650. Additionally, on May 29, Baxter sold another 29,212 shares at a weighted average price of $71.522, within a range of $71.50 to $71.605.
Apart from the sales, Baxter also acquired shares through option exercises on both days. He acquired 80,880 shares on May 28 and 29,212 shares on May 29, with each transaction priced at $25.268 per share. The total value for these acquisitions amounted to $2,781,804.
Following these transactions, Baxter's direct ownership in Kontoor Brands has changed significantly. After the sales and acquisitions, his direct holdings in the company's common stock are substantial.
Kontoor Brands, based in Greensboro, North Carolina, is known for its apparel and accessories in the men's and boys' furnishings, work clothing, and allied garments sector. The company has a strong market presence and is recognized for its commitment to quality and innovation.
Investors and market watchers often look to insider buying and selling as a signal of a company executive's belief in the company's future performance. While the reasons for Baxter's transactions were not disclosed, the sizable nature of the sales is noteworthy for stakeholders and potential investors.
For those interested in the detailed figures and transaction ranges, Baxter has undertaken to provide full information upon request to Kontoor Brands, any security holder of Kontoor Brands, or staff of the Securities and Exchange Commission.
The transactions have been publicly filed and are available for review by investors and regulatory authorities.
InvestingPro Insights
Amidst the news of Scott H. Baxter's stock transactions, Kontoor Brands (NYSE:KTB) presents an interesting case for investors examining the company's financial health and market performance. With an adjusted market capitalization of $4.04 billion, Kontoor Brands is a significant player in the apparel industry. The company's P/E ratio stands at 18.09, reflecting investor perceptions of its earnings potential relative to its current share price. Over the last twelve months, as of Q1 2023, Kontoor Brands has reported a gross profit of $1.095 billion, which translates to a gross profit margin of 42.58%. This indicates a strong ability to convert sales into profit at the gross level.
InvestingPro Tips highlight that Kontoor Brands has raised its dividend for three consecutive years, signaling confidence in its financial stability and commitment to rewarding shareholders. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position to meet immediate financial responsibilities. For investors interested in dividend income and financial resilience, these factors may be particularly reassuring.
While some analysts have revised their earnings estimates downwards for the upcoming period, Kontoor Brands has demonstrated a high return over the last year with an impressive 83.04% price total return. The company is also trading near its 52-week high, at 98.61% of the peak price. This could indicate market optimism about the company's future prospects or could also signal caution if investors perceive the stock as potentially overvalued.
For those looking to delve deeper into Kontoor Brands' performance and future outlook, InvestingPro offers additional tips and insights. There are currently 12 more InvestingPro Tips available for Kontoor Brands, which can be accessed at https://www.investing.com/pro/KTB. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment analysis with comprehensive data and expert insights.
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