Why Michael Kors Holding Ltd Stock Is Popping Today

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Michael KorsMichael Kors Holding Ltd (NYSE:KORS) shares are on the rise over rumors that the company may be on the market.

The luxury accessories and handbags retailer is reportedly seeking a potential suitor that fits its business model and expertise with high-end products to take over with a fitting bid.

No further details have been released surrounding the company’s value or who these suitors may be. On New Year’s Eve 2015, Michael Kors lost about half of its valuation, despite posting strong earnings to wrap up the year.

The company currently holds a valuation of about $8.58 billion, underperforming its index — the S&P 500 Index — by 20.78%. Quarterly earnings are also around the corner as they will be unveiled on November 2.

Michael Kors is slated to earn 88 cents per share for its most recent three-month period, which is 13 cents less than the year-ago quarter. The figure is the same as its previous quarter.

14 out of the 19 analysts covering KORS stock rate it a “hold,” while four have a “buy” rating for the retailer and one firm has issued a “sell” rating.

The company’s business focuses on three main areas: wholesale and company-operated retail stores including leading department stores, specialty stores and select licensing partners.

Five insider sales have transpired since June 8, 2016, amounting to $5.77 million in net trading activity over the last four and a half months.

KORS shares surged 5.4% Wednesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/michael-kors-stock-2/.

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