Exploring Kohl's Corporation (KSS) Investor Profile: Who’s Buying and Why?

Who Invests in Kohl's Corporation (KSS) and Why?

Who Invests in Kohl's Corporation (KSS) and Why?

Understanding the investor profile of Kohl's Corporation involves analyzing the key types of investors, their motivations for investing, and the strategies they employ.

Key Investor Types

• Retail Investors: Individual investors, often characterized by their smaller investment amounts and focus on personal financial goals.
• Institutional Investors: Large entities such as mutual funds, pension funds, and insurance companies that invest substantial capital. As of August 3, 2024, institutional ownership in Kohl's was approximately 85%.
• Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. These funds often take larger positions and may engage in short selling. Hedge fund ownership was reported at around 10% as of the latest quarter.

Investment Motivations

Investors are drawn to Kohl's for several reasons:

• Growth Prospects: The company has focused on enhancing its omnichannel presence, with digital sales accounting for 25% of total net sales in 2024.
• Dividends: On August 13, 2024, the company declared a quarterly cash dividend of $0.50 per share, showing a commitment to returning value to shareholders.
• Market Position: Kohl's operates 1,176 stores and has a well-established brand presence in the retail sector, making it a reliable choice for long-term investors.

Investment Strategies

Investors employ various strategies when investing in Kohl's:

• Long-Term Holding: Many institutional investors adopt a long-term perspective, focusing on the company's potential for sustained growth and profitability.
• Short-Term Trading: Some retail investors may engage in short-term trading, capitalizing on price fluctuations driven by market news and quarterly earnings reports.
• Value Investing: Investors look for undervalued stocks with strong fundamentals. Kohl's current P/E ratio is approximately 15, which some may view as attractive compared to industry peers.

Financial Overview

To provide a clearer picture of the investment landscape, here is a summary of key financial metrics:

Investors are closely monitoring these financial metrics as they assess the company's performance and strategic direction in a competitive retail landscape.

Institutional Ownership and Major Shareholders of Kohl's Corporation (KSS)

Institutional Ownership and Major Shareholders

As of August 3, 2024, the following table outlines the largest institutional investors and their respective shareholdings in Kohl's Corporation:

Recent changes in institutional ownership show a mix of buying and selling activities. Notably, Vanguard Group increased its stake by 2.1% in the last quarter, while BlackRock reduced its holdings by 1.5%.

Institutional investors play a significant role in the company's stock price and overall strategy. Their large shareholdings often lead to influence over corporate governance and strategic decisions, impacting stock performance through market sentiment and confidence. For instance, the recent increase in Vanguard's stake coincided with a stabilization of stock prices, suggesting a bullish outlook among major investors.

As of August 2024, the total shares outstanding are 111 million, with institutional ownership comprising approximately 49.4% of the total shares, indicating a strong interest from institutional investors.

Key Investors and Their Influence on Kohl's Corporation (KSS)

Key Investors and Their Impact on Stock

As of 2024, notable investors in Kohl's Corporation (KSS) include various institutional investors and activist shareholders. Noteworthy among them are:

• Vanguard Group - holds approximately 8.5% of total shares outstanding.
• BlackRock, Inc. - owns around 8.2% of total shares outstanding.
• State Street Corporation - has a stake of about 4.9%.
• Macellum Advisors - an activist investor that has been vocal in pushing for strategic changes within the company.

Investor Influence

These investors significantly influence company decisions and stock movements through their voting power and engagement in corporate governance. For instance, activist investors like Macellum Advisors have pressured the management to enhance operational efficiency and improve shareholder returns, which can lead to stock price volatility.

Recent Moves

In recent months, there have been notable movements among these key investors:

• In June 2024, Macellum Advisors increased its stake by acquiring an additional 1.2 million shares, signaling its commitment to drive operational changes.
• Vanguard and BlackRock have adjusted their positions slightly, with Vanguard decreasing its stake by 0.5% during Q2 2024.
• As of August 3, 2024, total institutional ownership stands at approximately 85%, reflecting strong institutional confidence despite recent stock fluctuations.

These dynamics illustrate how institutional investors and activist shareholders shape the strategic direction and market perception of the company.

Market Impact and Investor Sentiment of Kohl's Corporation (KSS)

Market Impact and Investor Sentiment

Investor Sentiment: As of 2024, the sentiment among major shareholders towards the company is largely neutral. Institutional investors are closely monitoring performance metrics, particularly in light of the recent sales declines and adjusted financial forecasts.

Recent Market Reactions: The stock market has responded to significant changes in ownership. For instance, the recent drop in net sales by 4.2% in Q2 2024 has influenced investor confidence, leading to fluctuations in stock prices. The stock traded at approximately $23.50 per share in early August 2024, reflecting a decrease compared to its previous highs.

Analyst Perspectives: Analysts have expressed mixed views regarding the impact of key investors on the company’s future. The downgrade by Fitch to a BB rating has raised concerns about the company’s long-term financial health. Analysts project a potential decline in earnings per share (EPS) for 2024, estimating a range between $1.75 and $2.25.

Furthermore, the company’s capital expenditures are projected to be around $500 million in 2024, focusing on the expansion of partnerships and new store openings. This is indicative of a strategic pivot to enhance revenue streams despite current challenges.

In terms of liquidity, the company reported cash and cash equivalents of $231 million as of August 3, 2024, compared to $204 million at the same time last year. This slight improvement in liquidity may provide some reassurance to investors amidst ongoing market volatility.

Overall, while investor sentiment remains neutral, the market's reaction to ownership changes and analyst forecasts indicates a cautious outlook for the company moving forward.