Ralph Lauren (NYSE:RL) Shares Gap Up After Strong Earnings

Shares of Ralph Lauren Co. (NYSE:RL) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $208.04, but opened at $229.94. Ralph Lauren shares last traded at $220.84, with a volume of 376,403 shares changing hands.

The textile maker reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.43 by $0.11. Ralph Lauren had a return on equity of 28.79% and a net margin of 10.27%. The company had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.68 billion. During the same period in the prior year, the business posted $2.10 earnings per share. The firm’s revenue for the quarter was up 5.7% compared to the same quarter last year.

Ralph Lauren Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 11th. Investors of record on Friday, September 27th were given a dividend of $0.825 per share. This represents a $3.30 dividend on an annualized basis and a dividend yield of 1.48%. The ex-dividend date of this dividend was Friday, September 27th. Ralph Lauren’s payout ratio is 31.46%.

Analyst Ratings Changes

Several research analysts have weighed in on RL shares. Raymond James increased their target price on shares of Ralph Lauren from $215.00 to $235.00 and gave the stock an “outperform” rating in a research note on Friday. Telsey Advisory Group reissued an “outperform” rating and issued a $207.00 target price on shares of Ralph Lauren in a research report on Thursday. TD Cowen increased their target price on Ralph Lauren from $208.00 to $251.00 and gave the stock a “buy” rating in a research note on Tuesday. Barclays increased their price target on shares of Ralph Lauren from $200.00 to $257.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Guggenheim upped their price objective on Ralph Lauren from $200.00 to $225.00 and gave the stock a “buy” rating in a research report on Monday, October 28th. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat.com, Ralph Lauren presently has a consensus rating of “Moderate Buy” and an average target price of $223.90.

Hedge Funds Weigh In On Ralph Lauren

Several hedge funds have recently added to or reduced their stakes in the stock. Family Firm Inc. acquired a new position in Ralph Lauren during the second quarter worth approximately $30,000. Gladius Capital Management LP purchased a new stake in Ralph Lauren in the 2nd quarter valued at $31,000. Huntington National Bank boosted its stake in Ralph Lauren by 86.6% during the 3rd quarter. Huntington National Bank now owns 222 shares of the textile maker’s stock worth $43,000 after purchasing an additional 103 shares during the period. Versant Capital Management Inc grew its position in Ralph Lauren by 1,775.0% during the 2nd quarter. Versant Capital Management Inc now owns 225 shares of the textile maker’s stock worth $39,000 after purchasing an additional 213 shares during the last quarter. Finally, AM Squared Ltd acquired a new position in Ralph Lauren in the third quarter valued at $58,000. 67.91% of the stock is currently owned by hedge funds and other institutional investors.

Ralph Lauren Stock Up 0.4 %

The firm has a market capitalization of $13.79 billion, a PE ratio of 21.22, a PEG ratio of 1.65 and a beta of 1.49. The business’s fifty day moving average price is $192.92 and its 200 day moving average price is $179.25. The company has a quick ratio of 1.53, a current ratio of 2.19 and a debt-to-equity ratio of 0.59.

Ralph Lauren Company Profile

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.