Traders Purchase Large Volume of Call Options on Michael Kors (KORS)

Traders Purchase Large Volume of Call Options on Michael Kors (KORS)

Michael Kors Holdings Ltd (NYSE:KORS) was the recipient of unusually large options trading activity on Monday. Stock investors purchased 20,383 call options on the stock. This represents an increase of approximately 2,715% compared to the average volume of 724 call options.

Several research firms recently commented on KORS. Piper Jaffray Companies set a $71.00 price objective on Michael Kors and gave the stock a “hold” rating in a report on Friday, August 17th. Zacks Investment Research downgraded Michael Kors from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 26th. ValuEngine downgraded Michael Kors from a “buy” rating to a “hold” rating in a research note on Tuesday, October 2nd. Telsey Advisory Group boosted their price target on Michael Kors from $67.00 to $75.00 and gave the company a “market perform” rating in a research note on Thursday, August 9th. Finally, Needham & Company LLC cut their price target on Michael Kors from $79.00 to $75.00 and set a “buy” rating for the company in a research note on Wednesday, September 26th. Eighteen equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Michael Kors currently has a consensus rating of “Hold” and a consensus target price of $75.93.

NYSE:KORS opened at $67.04 on Wednesday. The firm has a market cap of $10.24 billion, a P/E ratio of 14.83, a P/E/G ratio of 2.16 and a beta of 0.12. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.63 and a current ratio of 1.37. Michael Kors has a fifty-two week low of $46.70 and a fifty-two week high of $75.96.

Michael Kors (NYSE:KORS) last announced its quarterly earnings data on Wednesday, August 8th. The lifestyle brand reported $1.32 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.95 by $0.37. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.14 billion. Michael Kors had a return on equity of 39.01% and a net margin of 13.14%. Michael Kors’s quarterly revenue was up 26.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.80 EPS. Sell-side analysts forecast that Michael Kors will post 5.02 EPS for the current year.

In other news, insider Michael David Kors sold 179,920 shares of Michael Kors stock in a transaction dated Tuesday, September 18th. The stock was sold at an average price of $73.62, for a total value of $13,245,710.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO John D. Idol sold 150,000 shares of Michael Kors stock in a transaction dated Friday, July 20th. The stock was sold at an average price of $67.99, for a total value of $10,198,500.00. The disclosure for this sale can be found here. Insiders sold 809,840 shares of company stock worth $58,216,002 in the last 90 days. Company insiders own 6.00% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. Nelson Roberts Investment Advisors LLC grew its position in Michael Kors by 2.0% in the 3rd quarter. Nelson Roberts Investment Advisors LLC now owns 77,121 shares of the lifestyle brand’s stock valued at $5,287,000 after acquiring an additional 1,500 shares during the last quarter. Cerebellum GP LLC bought a new position in shares of Michael Kors during the 3rd quarter worth $169,000. Atria Investments LLC grew its position in shares of Michael Kors by 86.5% during the 3rd quarter. Atria Investments LLC now owns 8,907 shares of the lifestyle brand’s stock worth $611,000 after buying an additional 4,130 shares in the last quarter. Fox Run Management L.L.C. bought a new position in shares of Michael Kors during the 3rd quarter worth $358,000. Finally, Fulton Bank N.A. grew its position in shares of Michael Kors by 7.9% during the 3rd quarter. Fulton Bank N.A. now owns 12,588 shares of the lifestyle brand’s stock worth $863,000 after buying an additional 918 shares in the last quarter. 86.61% of the stock is currently owned by institutional investors.

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.

Further Reading: Compound Annual Growth Rate (CAGR)

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