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

You're looking at Kohl's Corporation (KSS) and seeing a fascinating tug-of-war: a deep value play for some, a precarious retail bet for others. The reality is, nearly all the action is institutional, with a staggering 98.04% of the stock owned by big players, so understanding their moves is defintely key. We saw titans like BlackRock, Inc. holding over 18.8 million shares as of Q3 2025, but the real story is the recent, aggressive buying from firms like BNP Paribas Financial Markets, which boosted its stake by 129.7% in the third quarter. But why the conviction when the company's full-year 2025 adjusted diluted EPS guidance is a modest $0.50-$0.80, and Q3 consensus revenue sits at a declining $3.49 billion? Are they betting on the turnaround strategy, or are they just chasing the juicy annualized dividend of $0.50 per share? We'll map out exactly which institutions are making the biggest moves and what their investment theses likely are, helping you decide if you should follow the smart money or run the other way.

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

You're looking at Kohl's Corporation (KSS) and trying to figure out who is buying this stock and what their endgame is. The quick takeaway is that institutional giants hold the vast majority of shares for passive reasons, but the stock's action is defintely driven by a tug-of-war between value-focused hedge funds and a significant short-selling crowd.

As of late 2025, the ownership structure is heavily skewed toward institutional investors, who collectively own approximately 94.85% of the company's shares. This leaves a smaller, but still impactful, portion for insiders and individual investors, often grouped together as retail. That's a huge institutional footprint.

Key Investor Types: The Ownership Breakdown

The investor base for Kohl's Corporation can be neatly split into three primary camps, each with a distinct role in the stock's daily trading volume and long-term stability. The sheer volume of institutional money here means their moves matter most.

• Institutional Investors: These are the behemoths like BlackRock, Inc. and Vanguard Group Inc. They hold the largest positions, with BlackRock, Inc. owning over 18.8 million shares and Vanguard Group Inc. holding over 11.9 million shares as of the latest filings. Their motivation is largely passive-Kohl's is simply a component of the index funds and ETFs they manage, so they buy and hold to match the index's performance.
• Hedge Funds: This group is far more active and volatile. Funds like Citadel Advisors have recently increased their position significantly, while others like Alyeska Investment Group L.P. have slashed theirs. Their activity is a mix of short-term trading and deep-value investing, often betting on a rapid turnaround or a short-term catalyst.
• Retail Investors: Individual investors, alongside public companies, account for a notable portion, estimated around 33.28% of the total ownership. These investors are often drawn to the low share price, the dividend, or the potential for a 'meme stock' style short squeeze, given the high short interest.

Investment Motivations: Why They Buy KSS

No one is buying Kohl's Corporation for explosive near-term growth; the story here is purely about value and income. The company's own guidance for the full fiscal year 2025 projects net sales to decrease between 5% and 6%, and comparable sales to fall between 4% and 5%. That's a headwind, not a tailwind.

The primary attractions are the low valuation and the reliable dividend, which is a key signal of management's confidence in cash flow, despite the sales slump.

• Value Proposition: With a market capitalization of roughly $1.79 billion and a trailing Price-to-Earnings (P/E) ratio around 8.63 in November 2025, the stock is priced like a deep value play. Investors are essentially betting that the market is over-discounting the company's core real estate assets and brand value.
• Dividend Income: The company affirmed its quarterly cash dividend at $0.125 per share. This translates to an annualized dividend of $0.50 and a respectable yield of approximately 3.1% based on recent stock prices. This is a major draw for income-focused mutual funds and individual investors.
• Turnaround Potential: Many investors are looking for a successful execution of the company's strategic initiatives, such as its focus on activewear and beauty, as detailed in the Mission Statement, Vision, & Core Values of Kohl's Corporation (KSS). A successful turnaround could quickly re-rate the stock, offering significant capital appreciation from its current low base.

Investment Strategies: Navigating the Volatility

The strategies at play are a clear reflection of the company's status as a struggling but cash-generating retailer. You see a distinct split between passive, long-term holders and aggressive, short-term players.

The most defining characteristic of KSS trading in 2025 is the high level of short interest-around 28.38% of the float. This means a significant portion of the market is actively betting against the stock, which creates a high-risk, high-reward environment.

Here's the quick math: If the company can hit the high end of its full-year 2025 adjusted diluted EPS guidance of $0.80 per share, the stock looks cheap, which is the core argument for the value investors. But if the sales decline accelerates, the short sellers win. That's the battle you're seeing play out every day.

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

You're looking at Kohl's Corporation (KSS) and trying to figure out who holds the cards and why the stock moves the way it does. The direct takeaway is this: Kohl's is overwhelmingly controlled by institutional money, and its recent strategy-especially the focus on its core store fleet-is a direct result of past activist investor pressure. This high institutional ownership, sitting at roughly 98.04% of the stock, means the big players dictate the narrative, and their recent selling suggests a lack of conviction in the near-term turnaround.

Top Institutional Investors: The Passive Giants

The investor profile for Kohl's is dominated by the passive index fund managers, the ones who buy the whole market. BlackRock, Inc. and The Vanguard Group, Inc. are the largest shareholders, which is typical for a large-cap US stock. As of the end of the third quarter of 2025, these two alone account for a significant chunk of the company's equity. Their primary role is passive oversight, but their sheer size gives them immense voting power.

Here is a snapshot of the top institutional holders, based on the latest 13F filings from the September 30, 2025, quarter:

Here's the quick math: These top five firms hold over 45 million shares, representing nearly 40% of the total shares outstanding. That's a defintely concentrated power base.

Recent Ownership Shifts: A Mixed Signal

Looking at the recent 13F filings for Q3 2025, the picture is mixed, which is a classic sign of a stock in transition. You see the largest passive managers trimming their positions, while some active managers are taking new, albeit smaller, stakes or making large percentage increases. For instance, Vanguard Group Inc. reduced its stake by 511,968 shares in the third quarter of 2025. Conversely, Morgan Stanley increased its position significantly by over 1.9 million shares in the same period, signaling a potential new thesis from that firm's active management desks. Other notable activity includes:

• BlackRock, Inc. added 414,346 shares, consolidating its top position.
• Dimensional Fund Advisors LP cut its position by 302,365 shares.
• Goldman Sachs Group Inc. added over 1.6 million shares, a major vote of confidence.

The overall institutional ownership is high, at around 103.81% of the float, which indicates a substantial short interest (investors betting the stock will fall) alongside the long-only institutional holdings. That's a huge pressure cooker for volatility.

Impact of Institutional Investors on Strategy

The biggest influence from institutional investors on Kohl's Corporation (KSS) has been the push for strategic change, particularly from the activist hedge funds. These smaller, more aggressive funds-like Macellum Advisors and Ancora Holdings-have forced the company's hand in recent years, demanding things like realizing the value of its real estate via sale-leaseback transactions and overhauling its inventory management. The key victory for these activists was the appointment of new directors and, ultimately, the installment of Tom Kingsbury as CEO.

The current strategy, which emphasizes core retail competence and the successful Sephora partnership, is a direct response to this investor pressure. The market is waiting to see if this pivot can deliver on the company's full-year 2025 earnings per share (EPS) guidance of $0.500 to $0.800, especially with the stock trading around $15.00 per share as of November 20, 2025. The passive giants like BlackRock and Vanguard, while not activist themselves, use their massive voting blocks to ensure the board is accountable for this long-term strategy, in line with their 2025 proxy guidelines which prioritize board oversight of long-term strategy and risk. If you want a deeper dive into the company's direction, check out the Mission Statement, Vision, & Core Values of Kohl's Corporation (KSS).

The high short interest, fueled by institutional bets against the stock, creates a scenario where any positive news-like a strong holiday quarter-could trigger a sharp, upward price spike (a short squeeze). But still, the long-term investors are demanding sustained execution, not just a one-off beat.

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

You're looking at Kohl's Corporation (KSS) and wondering who the major players are and what they're pushing for, which is smart. The short answer is that institutional investors own nearly all of it, and their recent moves show a distinct split: some are accumulating shares, betting on a turnaround, while others are trimming their positions, still cautious about the retail environment.

The investor base is overwhelmingly institutional, with these funds and firms owning about 98.04% of the company's stock, as of late 2025. This high concentration means a handful of major asset managers and a few persistent activist funds essentially drive the stock's long-term direction and corporate strategy.

The Institutional Giants: BlackRock and Vanguard

The largest shareholders in Kohl's Corporation are the passive investment behemoths, BlackRock, Inc. and The Vanguard Group, Inc. These firms are not typically activist, but their sheer size gives them enormous influence (what we call 'structural' influence) on governance matters like board elections.

Here's the quick math on their Q3 2025 positions, based on SEC filings:

• BlackRock, Inc.: Holds the largest stake with 18,802,533 shares, representing about 16.78% of the company. They were net buyers in the third quarter of 2025, adding 414,346 shares to their position.
• The Vanguard Group, Inc.: Owns 11,908,267 shares, or about 10.63%. To be fair, Vanguard was a net seller in Q3 2025, reducing their position by 511,968 shares.

When BlackRock and Vanguard move, it shifts the institutional value of the company's stock. As of late 2025, the total value of institutional holdings stood at approximately $1.682 billion, indicating a massive collective bet on the retailer's future. This is a 'show me' story right now, and the big funds are waiting for the payoff.

Recent Investor Activity: Who's Buying and Selling?

Looking at the Q3 2025 filings, you see a mixed but intriguing picture of funds either piling in or pulling back. This tells you the market is defintely divided on the Kohl's Corporation turnaround story.

A few major firms showed significant accumulation, signaling a belief that the stock, trading around $15.00 per share in November 2025, is undervalued.

The buying activity from firms like Morgan Stanley and Goldman Sachs Group Inc. suggests a belief in the company's strategy, which focuses on strengthening its omnichannel platform and proprietary brands. You can read more about that strategy here: Mission Statement, Vision, & Core Values of Kohl's Corporation (KSS).

Activist Influence: The Push for Change

The most direct influence on Kohl's Corporation has come from activist investors like Macellum Capital Management and Ancora Holdings. While much of the highly public proxy battle activity peaked in 2022, the effects are still clear in 2025.

Here's what you need to know about their enduring impact:

• Board Refreshment: Activist pressure led to the appointment of new directors, including Thomas Kingsbury, who was the former CEO of Burlington Stores. He later became the CEO of Kohl's Corporation, a clear win for the activist thesis that the board and management needed fresh retail expertise.
• Strategic Focus: The push for a sale or a spin-off of the e-commerce business, though ultimately rejected, forced the company to double down on its current strategy: the Sephora partnership, improving its loyalty program, and focusing on its off-mall footprint. This is why the company is guiding for a full-year 2025 adjusted EPS between $0.50 and $0.80.

The activist playbook here was simple: force a change in leadership and strategy to realize the value locked in the company's real estate and brand portfolio. The ongoing threat of renewed activism keeps management laser-focused on delivering on its turnaround plan, especially as the company faces a challenging Q3 2025 with analysts expecting a loss of $0.19 per share on $3.49 billion in revenue. That's the near-term risk these investors are watching closely.

Market Impact and Investor Sentiment

The investor sentiment toward Kohl's Corporation (KSS) is best described as highly polarized, leaning toward a cautious 'Moderate Sell' consensus from Wall Street analysts, but still anchored by massive institutional holdings. While the stock price has seen a decline of 8.54% over the year leading up to November 20, 2025, trading at $15.00 per share, major institutional players are still heavily invested.

You're looking at a classic retail turnaround story where the professionals are split: some are accumulating shares, betting on a successful strategic pivot, while others are quietly reducing their exposure. This mixed signal is the core of the Kohl's investment profile right now.

The institutional ownership is substantial, accounting for approximately 98.04% of the stock. Giants like BlackRock, Inc., Vanguard Group Inc, and IJR - iShares Core S&P Small-Cap ETF are among the largest shareholders, collectively holding over 131 million shares. However, a deeper look at the recent 13F filings reveals a net selling trend in the last reported quarter, with institutions selling 280.5 million shares while buying 92.6 million shares. That's a significant flow of capital moving out, suggesting a number of large funds are defintely taking profits or cutting losses.

Recent Market Reactions to Ownership Shifts

The stock market's response to changes in ownership and corporate news has been volatile throughout the 2025 fiscal year, often disconnected from underlying fundamentals. For instance, the shares climbed 7.09% on May 1, 2025, following the unexpected termination of the CEO and the appointment of an Interim CEO, Michael Bender, despite a soft preliminary Q1 2025 outlook. This jump wasn't about the numbers; it was a bet on leadership stability and a fresh start.

A more dramatic example of sentiment-driven trading occurred on July 22, 2025, when the stock skyrocketed nearly 38% on no formal news, with trading volumes surging 17 times above average. This 'meme stock' episode shows that the stock is highly susceptible to retail frenzy and short-squeeze dynamics, which can temporarily override any fundamental analysis. But, to be fair, disappointing guidance earlier in March 2025 caused the share price to drop by 15%, proving that bad news still hits hard.

• April 21, 2025: Stock up 8.79% on strategic shift news.
• May 1, 2025: Shares climb 7.09% after CEO change.
• July 22, 2025: Unexplained 38% surge on high volume.

Analyst Perspectives and Investor Impact

The consensus from Wall Street analysts is a 'Neutral' or 'Moderate Sell' rating, based on the views of 13 analysts. This cautious stance stems from ongoing challenges in the core lower- to middle-income customer base and continued softness in store traffic. The average 12-month price target is between $12.66 and $15.61, which is essentially flat to slightly below the current price. Here's the quick math: with a high forecast of $19.00 and a low of $4.50, the spread is huge, reflecting deep uncertainty about the company's turnaround success.

The impact of key investors is twofold. Passive investors like Vanguard and BlackRock provide a stable floor of demand, which is crucial for a stock facing cyclical headwinds. But the more activist or tactical funds are the ones driving the volatility. When a fund like Two Sigma Investments cuts their position by -77% in one quarter, it signals a loss of conviction that other investors notice immediately. Analysts are closely watching the execution of the company's strategic initiatives, which you can read more about in Mission Statement, Vision, & Core Values of Kohl's Corporation (KSS).

For the fiscal third quarter of 2025, the Zacks Consensus Estimate pegs quarterly sales at $3.49 billion, a projected 5.9% decrease from the prior year, with an expected loss of 19 cents per share. The full fiscal year 2025 guidance for Earnings Per Share (EPS) is narrow, between $0.500 and $0.800, showing management's limited visibility on a strong holiday season.

Here's a snapshot of recent analyst activity:

What this estimate hides is the potential for a positive earnings surprise, as Kohl's has a history of beating analyst EPS estimates, with an average surprise of 29.2% over the trailing four quarters. So, while the sentiment is negative, the potential for a short-term pop on an earnings beat is real. Your next step should be to monitor the Q3 2025 earnings report on November 25, as that will be the most concrete catalyst.