Stock Repurchase Plan Announced by Ralph Lauren (NYSE:RL) Board

Ralph Lauren (NYSE:RL) declared that its Board of Directors has authorized a stock buyback plan on Thursday, May 22nd, RTT News reports. The company plans to repurchase $1.50 billion in shares. This repurchase authorization allows the textile maker to repurchase up to 8.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have weighed in on the company. TD Cowen boosted their price target on Ralph Lauren from $258.00 to $268.00 and gave the company a “buy” rating in a report on Tuesday, February 4th. Needham & Company LLC reaffirmed a “buy” rating and issued a $310.00 target price on shares of Ralph Lauren in a research report on Friday. Cowen reaffirmed a “buy” rating on shares of Ralph Lauren in a research report on Thursday. Wells Fargo & Company increased their target price on Ralph Lauren from $275.00 to $300.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Telsey Advisory Group reaffirmed an “outperform” rating and issued a $315.00 target price on shares of Ralph Lauren in a research report on Thursday. One research analyst has rated the stock with a sell rating, three have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Ralph Lauren currently has an average rating of “Moderate Buy” and an average target price of $292.88.

Ralph Lauren Trading Down 1.3%

NYSE:RL opened at $273.92 on Friday. The business’s 50-day moving average is $228.32 and its two-hundred day moving average is $235.78. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.76 and a quick ratio of 1.31. Ralph Lauren has a 12 month low of $155.96 and a 12 month high of $289.33. The firm has a market capitalization of $16.92 billion, a PE ratio of 24.99, a price-to-earnings-growth ratio of 1.73 and a beta of 1.44.

Ralph Lauren (NYSE:RL) last released its quarterly earnings data on Thursday, May 22nd. The textile maker reported $2.27 EPS for the quarter, beating the consensus estimate of $2.00 by $0.27. Ralph Lauren had a return on equity of 30.88% and a net margin of 10.14%. The company had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same period last year, the company posted $1.71 earnings per share. The firm’s revenue was up 8.3% compared to the same quarter last year. Research analysts predict that Ralph Lauren will post 12.01 earnings per share for the current fiscal year.

Ralph Lauren Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 11th. Stockholders of record on Friday, June 27th will be given a dividend of $0.9125 per share. This represents a $3.65 dividend on an annualized basis and a dividend yield of 1.33%. This is a positive change from Ralph Lauren’s previous quarterly dividend of $0.83. The ex-dividend date is Friday, June 27th. Ralph Lauren’s payout ratio is presently 30.11%.

About Ralph Lauren

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances.