Tapestry (NYSE:TPR) Shares Down 4% – What’s Next?

Tapestry, Inc. (NYSE:TPR)’s share price fell 4% during mid-day trading on Thursday . The stock traded as low as $125.82 and last traded at $125.0530. 337,365 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 2,475,212 shares. The stock had previously closed at $130.25.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Zacks Research lowered shares of Tapestry from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 22nd. Citigroup boosted their price target on Tapestry from $165.00 to $170.00 and gave the company a “buy” rating in a report on Wednesday, April 29th. Barclays increased their price objective on Tapestry from $182.00 to $185.00 and gave the stock an “overweight” rating in a research note on Friday, August 14th. Wells Fargo & Company decreased their target price on Tapestry from $165.00 to $160.00 and set an “overweight” rating for the company in a research report on Thursday, August 13th. Finally, Wall Street Zen cut Tapestry from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Tapestry has an average rating of “Moderate Buy” and a consensus target price of $175.12.

Tapestry Stock Performance

The firm’s fifty day moving average price is $144.05 and its 200 day moving average price is $144.81. The firm has a market cap of $24.82 billion, a P/E ratio of 17.08, a price-to-earnings-growth ratio of 1.65 and a beta of 1.43. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.25 and a current ratio of 1.75.

Tapestry (NYSE:TPR) last released its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.04. The firm had revenue of $1.88 billion for the quarter, compared to the consensus estimate of $1.87 billion. Tapestry had a net margin of 19.09% and a return on equity of 254.95%. The company’s quarterly revenue was up 8.9% on a year-over-year basis. During the same period last year, the firm earned $1.04 earnings per share. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Sell-side analysts expect that Tapestry, Inc. will post 7.94 EPS for the current fiscal year.

Tapestry Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Shareholders of record on Friday, September 4th will be given a dividend of $0.4625 per share. This is a boost from Tapestry’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.85 annualized dividend and a yield of 1.5%. Tapestry’s payout ratio is 21.95%.

Insider Activity

In other news, CEO Joanne C. Crevoiserat sold 27,761 shares of the business’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $132.47, for a total value of $3,677,499.67. Following the completion of the transaction, the chief executive officer directly owned 666,149 shares of the company’s stock, valued at approximately $88,244,758.03. The trade was a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.32% of the company’s stock.

Hedge Funds Weigh In On Tapestry

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Groupe la Francaise lifted its position in shares of Tapestry by 20.7% during the second quarter. Groupe la Francaise now owns 89,507 shares of the luxury accessories retailer’s stock valued at $13,113,000 after buying an additional 15,360 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Tapestry during the 2nd quarter worth approximately $43,929,000. California State Teachers Retirement System lifted its position in Tapestry by 14,151.5% during the second quarter. California State Teachers Retirement System now owns 45,170,672 shares of the luxury accessories retailer’s stock valued at $6,612,083,000 after acquiring an additional 44,853,719 shares during the last quarter. Wedmont Private Capital boosted its stake in Tapestry by 2.2% in the second quarter. Wedmont Private Capital now owns 5,241 shares of the luxury accessories retailer’s stock valued at $738,000 after acquiring an additional 115 shares in the last quarter. Finally, Nilsine Partners LLC grew its holdings in Tapestry by 6.4% in the second quarter. Nilsine Partners LLC now owns 3,955 shares of the luxury accessories retailer’s stock worth $579,000 after purchasing an additional 239 shares during the last quarter. Hedge funds and other institutional investors own 90.77% of the company’s stock.

About Tapestry

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry’s operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.