A group of activist investors holding a combined stake of 9.5% in Kohl’s Corp (KSS) said earlier this week that it had nominated 9 directors to the department store chain’s board, as it aims to improve profitability.
The group, which includes Macellum Advisors GP LLC, Ancora Holdings Inc, Legion Partners Asset Management LLC and 4010 Capital LLC, is urging Kohl’s to add directors with retail experience to its board, to trim inventory levels and to consider a sale-leaseback of some of its real estate.
According to the activist investors, Kohl’s Corp has the potential to generate annual earnings per share of over $10 within the upcoming several years and achieve a stock price twice as high as the current one.
Kohl’s shares closed lower for the fifth time in the past ten trading sessions in New York on Tuesday. The stock went down 0.39% ($0.22) to $55.75, after touching an intraday low at $51.72, or a price level not seen since February 19th ($48.84).
Shares of Kohl’s Corporation have risen 37.01% so far in 2021 compared with a 3.34% gain for the benchmark index, S&P 500 (SPX).
In 2020, Kohl’s Corp’s stock went down 20.14%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Analyst stock price forecast and recommendation
According to CNN Money, the 15 analysts, offering 12-month forecasts regarding Kohl’s Corporation’s stock price, have a median target of $55.00, with a high estimate of $70.00 and a low estimate of $29.00. The median estimate represents a 1.35% downside compared to the closing price of $55.75 on February 23rd.
The same media also reported that at least 8 out of 17 surveyed investment analysts had rated Kohl’s Corporation’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.