Tapestry (NYSE:TPR) Rating Lowered to “Buy” at Wall Street Zen

Tapestry (NYSE:TPR) was downgraded by research analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

Several other brokerages have also issued reports on TPR. Barclays upped their target price on shares of Tapestry from $111.00 to $127.00 and gave the stock an “overweight” rating in a research report on Thursday, September 11th. Telsey Advisory Group reaffirmed an “outperform” rating and set a $125.00 price target on shares of Tapestry in a research note on Friday, November 7th. Evercore ISI increased their price objective on Tapestry from $125.00 to $129.00 and gave the company an “outperform” rating in a research report on Monday, November 3rd. Wells Fargo & Company decreased their price objective on Tapestry from $135.00 to $125.00 and set an “overweight” rating on the stock in a report on Friday, November 7th. Finally, Robert W. Baird set a $130.00 target price on Tapestry in a research report on Wednesday, October 29th. Eighteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Tapestry presently has a consensus rating of “Moderate Buy” and an average target price of $119.26.

Tapestry Stock Performance

Shares of TPR opened at $116.15 on Friday. Tapestry has a 12-month low of $58.39 and a 12-month high of $118.56. The company has a current ratio of 1.52, a quick ratio of 0.93 and a debt-to-equity ratio of 5.95. The company has a market cap of $23.77 billion, a PE ratio of 103.71, a price-to-earnings-growth ratio of 2.39 and a beta of 1.65. The stock has a 50-day moving average price of $110.43 and a 200-day moving average price of $101.93.

Tapestry (NYSE:TPR) last announced its earnings results on Thursday, November 6th. The luxury accessories retailer reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.25 by $0.13. Tapestry had a net margin of 3.77% and a return on equity of 116.42%. The business had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period last year, the firm posted $0.84 earnings per share. Tapestry’s quarterly revenue was up 13.1% on a year-over-year basis. Tapestry has set its FY 2026 guidance at 5.450-5.600 EPS. As a group, equities analysts forecast that Tapestry will post 4.91 earnings per share for the current fiscal year.

Tapestry declared that its Board of Directors has approved a stock repurchase plan on Thursday, November 6th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the luxury accessories retailer to purchase up to 4.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, CEO Todd Kahn sold 10,344 shares of the firm’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $107.00, for a total value of $1,106,808.00. Following the sale, the chief executive officer directly owned 131,815 shares of the company’s stock, valued at $14,104,205. This trade represents a 7.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Denise Kulikowsky sold 583 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $115.17, for a total value of $67,144.11. Following the transaction, the insider directly owned 19,285 shares of the company’s stock, valued at $2,221,053.45. The trade was a 2.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 126,805 shares of company stock valued at $13,236,129 over the last ninety days. Corporate insiders own 1.32% of the company’s stock.

Institutional Trading of Tapestry

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in Tapestry by 2.4% during the 2nd quarter. Vanguard Group Inc. now owns 25,902,930 shares of the luxury accessories retailer’s stock valued at $2,274,536,000 after purchasing an additional 606,686 shares during the period. State Street Corp lifted its position in shares of Tapestry by 19.3% in the 3rd quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer’s stock worth $1,044,995,000 after purchasing an additional 1,494,193 shares during the period. Geode Capital Management LLC boosted its stake in shares of Tapestry by 3.0% during the 2nd quarter. Geode Capital Management LLC now owns 5,500,858 shares of the luxury accessories retailer’s stock valued at $482,125,000 after purchasing an additional 158,782 shares in the last quarter. SRS Investment Management LLC boosted its stake in shares of Tapestry by 12.4% during the 2nd quarter. SRS Investment Management LLC now owns 5,332,824 shares of the luxury accessories retailer’s stock valued at $468,275,000 after purchasing an additional 589,000 shares in the last quarter. Finally, Schroder Investment Management Group increased its position in shares of Tapestry by 21.1% during the third quarter. Schroder Investment Management Group now owns 4,849,371 shares of the luxury accessories retailer’s stock valued at $549,046,000 after buying an additional 846,553 shares during the period. Hedge funds and other institutional investors own 90.77% of the company’s stock.

Tapestry Company Profile

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.