Kohl’s (NYSE:KSS) Shares Gap Down – Time to Sell?

Shares of Kohl’s Corporation (NYSE:KSS) gapped down before the market opened on Wednesday . The stock had previously closed at $17.68, but opened at $16.65. Kohl’s shares last traded at $17.5540, with a volume of 3,026,364 shares trading hands.

Kohl’s News Roundup

Here are the key news stories impacting Kohl’s this week:

• Positive Sentiment: Q2 earnings and guidance beat expectations: Kohl’s reported adjusted EPS of $1.28, well above estimates near $0.55–$0.58, while revenue of approximately $3.52 billion also exceeded forecasts. The company raised fiscal 2026 EPS guidance to $1.80–$2.40, versus consensus near $1.48, and provided revenue guidance above analysts’ expectations. KSS Q2 Earnings Beat Estimates on Margin Gains, Outlook Raised
• Positive Sentiment: Margins and liquidity improved: Gross-margin expansion, cost controls, inventory discipline and stronger liquidity supported profitability. Kohl’s also continues emphasizing proprietary brands and expense management, reinforcing the value case after the stock’s recent rebound. Kohl’s Q2 Earnings Beat Shifts Focus to Holiday Execution and Margins
• Neutral Sentiment: Valuation offers support, but expectations are rising: Kohl’s trades at a relatively low earnings multiple, and analysts see potential if sales stabilize. However, the 15.6% three-month rally increases the need for convincing holiday-season execution. Telsey Advisory Group raised its price target to $18 but retained a “market perform” rating. Kohl’s Stock Is Up 15.6% in 3 Months: Is the Rebound Sustainable?
• Negative Sentiment: Sales remain the key concern: Net and comparable sales declined 0.9%, extending Kohl’s revenue-reduction streak as budget-conscious consumers prioritize essentials over discretionary merchandise. Investors also questioned whether the earnings beat reflected the underlying business or temporary benefits. Kohl’s Sales Dip As Consumers Prioritize Essentials
• Negative Sentiment: Tariff refunds may overstate the improvement: Approximately $150 million of tariff refunds materially boosted the quarter and outlook. Analysts warn that, excluding this benefit, earnings and gross-margin progress was more limited, while heavier fall promotions could pressure margins. Elevated leverage and Kohl’s large store base remain additional risks.

Analyst Ratings Changes

A number of research firms have recently commented on KSS. Weiss Ratings upgraded Kohl’s from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, August 12th. Telsey Advisory Group increased their target price on Kohl’s from $17.00 to $18.00 and gave the company a “market perform” rating in a research note on Thursday. JPMorgan Chase & Co. raised their target price on Kohl’s from $15.00 to $17.00 and gave the company an “underweight” rating in a report on Tuesday, August 18th. Gordon Haskett downgraded Kohl’s from a “buy” rating to a “hold” rating and set a $14.00 price target on the stock. in a research report on Friday, May 15th. Finally, Morgan Stanley reiterated an “underweight” rating and set a $15.00 price target on shares of Kohl’s in a report on Monday, July 6th. One investment analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $16.17.

Kohl’s Stock Performance

The firm’s fifty day moving average price is $18.24 and its 200-day moving average price is $16.02. The company has a current ratio of 1.49, a quick ratio of 0.31 and a debt-to-equity ratio of 0.87. The company has a market cap of $2.07 billion, a P/E ratio of 7.96 and a beta of 1.40.

Kohl’s (NYSE:KSS) last released its earnings results on Wednesday, August 26th. The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.70. Kohl’s had a net margin of 1.75% and a return on equity of 6.75%. The business had revenue of $3.52 billion during the quarter, compared to analysts’ expectations of $3.32 billion. During the same quarter last year, the company earned $0.56 earnings per share. The firm’s revenue was down .9% on a year-over-year basis. Kohl’s has set its FY 2026 guidance at 1.800-2.400 EPS. As a group, research analysts forecast that Kohl’s Corporation will post 1.26 EPS for the current fiscal year.

Kohl’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th will be given a $0.125 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.7%. Kohl’s’s dividend payout ratio (DPR) is currently 21.83%.

Insider Buying and Selling at Kohl’s

In other news, EVP Jennifer J. Kent sold 22,942 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $20.00, for a total transaction of $458,840.00. Following the sale, the executive vice president directly owned 234,452 shares in the company, valued at approximately $4,689,040. The trade was a 8.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.55% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Baird Financial Group Inc. acquired a new position in shares of Kohl’s in the 1st quarter valued at $96,000. Caxton Associates LLP acquired a new stake in shares of Kohl’s during the 1st quarter valued at about $166,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Kohl’s by 14.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 489,708 shares of the company’s stock valued at $4,006,000 after acquiring an additional 60,769 shares during the period. Envestnet Asset Management Inc. bought a new stake in Kohl’s in the second quarter valued at about $120,000. Finally, Cetera Investment Advisers raised its position in Kohl’s by 21.6% in the second quarter. Cetera Investment Advisers now owns 33,708 shares of the company’s stock worth $286,000 after purchasing an additional 5,997 shares in the last quarter. 98.04% of the stock is owned by institutional investors.

About Kohl’s

Kohl’s Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl’s has focused on broadening its product assortment and enhancing the in-store and online shopping experience.

The retailer’s merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.