Kohl’s Corporation (KSS) Considering Taking Company Private or Breaking Themselves Up


Shares of Kohl’s Corporation (NYSE:KSS) are trading significantly higher this afternoon after reports have indicated that the company is considering a drastic move. According to a person familiar with the situation, Kohl’s Corporation (NYSE:KSS) is now considering either taking the company private via a sale to a private equity firm or perhaps even breaking themselves up.

The board of directors for the company is expected to discuss their options and future strategies later this week, according to the source. Kohl’s Corporation (NYSE:KSS) currently owns approximately 1200 stores and has a market cap of $9.1 billion. Shares are down over 35% since April, but over the last six weeks have made somewhat of a comeback. The stock is up 5.35% or $2.56 following the news, hitting $50.44 per share. About 5.70M shares traded hands or up 43.58% from the average. KSS has declined 24.50% since June 5, 2015 and is currently downtrending. It has underperformed the S&P500 by 19.81%.

From a total of 8 analysts covering Kohl’s Corporation (NYSE:KSS) stock, 3 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 38% of the ratings are positive. The highest target price is $75 while the lowest target price is $42. The mean of all analyst targets is $56.67 which is 12.35% above today’s ($50.44) stock price. Kohl’s Corporation was the topic of 15 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on November 10 with a “Buy” rating. Telsey Advisory Group maintained KSS stock in a recent report from October 16 with a “Outperform” rating. Finally, Deutsche Bank maintained the stock with a “Hold” rating in a report they issued on an August 15.

The institutional sentiment decreased to 1 in Q2 2015. It’s down 0.12, from 1.12 in 2015Q2. The ratio dropped, as 94 funds sold all their Kohl’s Corporation shares they owned while 192 reduced their positions. 63 funds bought stakes while 222 increased their total positions. Institutions now own 191.18 million shares which is 5.94% less than the previous share count of 203.26 million in 2015Q2.

Hutchinson Capital Management Ca holds 4.29% of its total portfolio in Kohl’s Corporation, equating to 278,504 shares. Addison Clark Management L.L.C. owns 102,015 shares representing 4.22% of their total US portfolio. Moreover, Athena Global Investors Llc has 4.09% of their total portfolio invested in the company, equating to 86,931 shares. The Ohio-based Eubel Brady & Suttman Asset Management Inc has a total of 3.58% of their portfolio invested in the stock. Loudon Investment Management Llc, a New Hampshire-based fund reported 84,592 shares owned.

Kohl’s Corporation is a specialty department store. The company has a market cap of $9.11 billion. As of January 31, 2015, the Company operated 1,162 department stores in 49 states and an e-Commerce Website (www.Kohls.com). It has 13.45 P/E ratio. The Firm sells private label, and national brand apparel, footwear, accessories, beauty and home products.