Key Points
- CEO Todd Kahn sold 30,000 Tapestry shares at an average $135.28, for about $4.06 million; the sale reduced his stake by 24.52% to 92,368 shares.
- Tapestry beat quarterly estimates, reporting EPS of $1.82 versus $1.56 expected and revenue of $1.89 billion; revenue rose 11.1% year over year. The company also announced a quarterly dividend of $0.4625 per share.
- Analyst sentiment remains broadly positive: Tapestry has a “Moderate Buy” consensus rating and an average price target of $167.26, while Cantor Fitzgerald initiated coverage with an “Overweight” rating and a $159 target.
Tapestry, Inc. (NYSE:TPR - Get Free Report) insider David Howard sold 11,188 shares of Tapestry stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $133.68, for a total transaction of $1,495,611.84. Following the completion of the transaction, the insider owned 58,290 shares of the company's stock, valued at $7,792,207.20. This represents a 16.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.
Tapestry Trading Down 0.3%
Shares of TPR stock opened at $135.70 on Wednesday. The stock has a market capitalization of $27.06 billion, a price-to-earnings ratio of 17.46, a PEG ratio of 1.54 and a beta of 1.44. The company's fifty day simple moving average is $117.87 and its two-hundred day simple moving average is $137.00. Tapestry, Inc. has a 1 year low of $99.00 and a 1 year high of $164.80. The company has a debt-to-equity ratio of 5.70, a current ratio of 1.24 and a quick ratio of 0.76.
Tapestry (NYSE:TPR - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The luxury accessories retailer reported $1.82 EPS for the quarter, topping analysts' consensus estimates of $1.56 by $0.26. The firm had revenue of $1.89 billion during the quarter, compared to analyst estimates of $1.85 billion. Tapestry had a return on equity of 274.20% and a net margin of 19.68%. The business's revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the company earned $1.38 earnings per share. As a group, analysts anticipate that Tapestry, Inc. will post 8.30 earnings per share for the current year.
Tapestry Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Friday, December 4th will be issued a dividend of $0.4625 per share. The ex-dividend date of this dividend is Friday, December 4th. This represents a $1.85 dividend on an annualized basis and a yield of 1.4%. Tapestry's dividend payout ratio is 23.81%.
Institutional Inflows and Outflows
Several institutional investors have recently made changes to their positions in the company. Private Advisor Group LLC boosted its stake in Tapestry by 37.0% during the third quarter. Private Advisor Group LLC now owns 10,015 shares of the luxury accessories retailer's stock valued at $1,152,000 after buying an additional 2,704 shares during the period. Ieq Capital LLC grew its position in Tapestry by 6.7% during the third quarter. Ieq Capital LLC now owns 199,409 shares of the luxury accessories retailer's stock worth $22,940,000 after buying an additional 12,457 shares in the last quarter. Focus Advisor Solutions LLC increased its stake in Tapestry by 51.9% in the 3rd quarter. Focus Advisor Solutions LLC now owns 33,437 shares of the luxury accessories retailer's stock worth $3,847,000 after acquiring an additional 11,431 shares during the last quarter. Landscape Capital Management L.L.C. increased its stake in Tapestry by 95.7% in the 3rd quarter. Landscape Capital Management L.L.C. now owns 36,780 shares of the luxury accessories retailer's stock worth $4,231,000 after acquiring an additional 17,984 shares during the last quarter. Finally, Composition Wealth LLC bought a new position in Tapestry in the 3rd quarter worth about $225,000. Institutional investors own 90.77% of the company's stock.
Wall Street Analyst Weigh In
A number of research analysts have weighed in on the company. TD Cowen began coverage on Tapestry in a report on Friday, October 30th. They set a "strong-buy" rating for the company. Argus decreased their price target on Tapestry from $165.00 to $148.00 and set a "buy" rating on the stock in a research report on Tuesday, August 18th. Wall Street Zen downgraded shares of Tapestry from a "buy" rating to a "hold" rating in a report on Sunday, August 16th. Raymond James Financial lowered their price target on shares of Tapestry from $165.00 to $140.00 and set an "outperform" rating on the stock in a report on Friday, October 16th. Finally, UBS Group cut their price objective on shares of Tapestry from $232.00 to $200.00 and set a "buy" rating for the company in a research report on Tuesday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $167.26.
Get Our Latest Stock Report on TPR
Key Stories Impacting Tapestry
Here are the key news stories impacting Tapestry this week:
- Positive Sentiment: Cantor Fitzgerald initiated coverage with an Overweight rating and a $159 price target, implying roughly 17% upside from the cited $135.70 price. Cantor Fitzgerald coverage
- Positive Sentiment: A growth-focused report highlights Coach’s pricing power, demand from Gen Z, international expansion, handbag sales and product innovation as potential supports for Tapestry’s growth. Coach growth report
- Negative Sentiment: Three company insiders sold a combined 52,432 shares for about $7.1 million. CEO Todd Kahn sold 30,000 shares, while Denise Kulikowsky and David Howard sold 11,244 and 11,188 shares, respectively. The sales reduced their individual holdings and could raise concerns about insider sentiment, although the filings do not establish the reason for the transactions. Kahn SEC filing Kulikowsky SEC filing Howard SEC filing
Tapestry Company Profile
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Get Free Report)
Tapestry, Inc. is a global fashion company whose portfolio includes Coach and Kate Spade New York. The company designs and sells handbags, accessories, footwear, apparel, jewelry and other lifestyle products through retail stores, e-commerce and wholesale partners. Based in New York, Tapestry serves customers in North America and international markets, including Asia and Europe. Its brands reach consumers through company-operated stores and digital channels as well as select department stores and other retail partners.
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