Tapestry (NYSE:TPR) Hits New 1-Year High – Should You Buy?

Tapestry, Inc. (NYSE:TPR) shares hit a new 52-week high on Monday . The stock traded as high as $131.40 and last traded at $130.36, with a volume of 1708812 shares changing hands. The stock had previously closed at $130.20.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Robert W. Baird set a $140.00 price target on Tapestry in a report on Wednesday, December 17th. The Goldman Sachs Group upped their price objective on shares of Tapestry from $116.00 to $130.00 and gave the stock a “buy” rating in a report on Monday, October 6th. Morgan Stanley boosted their price target on shares of Tapestry from $124.00 to $126.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. JPMorgan Chase & Co. upped their target price on Tapestry from $147.00 to $148.00 and gave the stock an “overweight” rating in a report on Monday, November 17th. Finally, Wall Street Zen cut Tapestry from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 6th. Seventeen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $122.00.

Tapestry Price Performance

The stock has a market capitalization of $26.58 billion, a P/E ratio of 115.98, a price-to-earnings-growth ratio of 2.70 and a beta of 1.65. The company has a debt-to-equity ratio of 5.95, a current ratio of 1.52 and a quick ratio of 0.93. The business’s 50 day moving average price is $113.43 and its 200 day moving average price is $106.73.

Tapestry (NYSE:TPR) last issued its quarterly earnings results on Thursday, November 6th. The luxury accessories retailer reported $1.38 earnings per share for the quarter, topping the consensus estimate 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 analysts’ expectations of $1.63 billion. During the same quarter last year, the company posted $0.84 EPS. The company’s revenue was up 13.1% compared to the same quarter last year. Tapestry has set its FY 2026 guidance at 5.450-5.600 EPS. Sell-side analysts forecast that Tapestry, Inc. will post 4.91 EPS for the current year.

Tapestry Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, December 22nd. Stockholders of record on Friday, December 5th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, December 5th. Tapestry’s dividend payout ratio (DPR) is 142.86%.

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

Insider Buying and Selling at Tapestry

In related news, CEO Todd Kahn sold 29,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $102.83, for a total value of $2,982,070.00. Following the completion of the transaction, the chief executive officer owned 86,736 shares of the company’s stock, valued at $8,919,062.88. The trade was a 25.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Scott A. Roe sold 18,794 shares of Tapestry stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $104.85, for a total transaction of $1,970,550.90. Following the completion of the sale, the chief financial officer owned 148,149 shares of the company’s stock, valued at $15,533,422.65. This trade represents a 11.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 115,485 shares of company stock worth $12,034,058. 1.32% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. 1858 Wealth Management LLC raised its stake in shares of Tapestry by 2.5% during the 2nd quarter. 1858 Wealth Management LLC now owns 3,835 shares of the luxury accessories retailer’s stock worth $337,000 after buying an additional 95 shares during the last quarter. Convergence Financial LLC increased its position in shares of Tapestry by 3.0% in the 2nd quarter. Convergence Financial LLC now owns 3,386 shares of the luxury accessories retailer’s stock worth $297,000 after purchasing an additional 98 shares during the last quarter. Essex Financial Services Inc. boosted its holdings in Tapestry by 3.5% in the third quarter. Essex Financial Services Inc. now owns 3,324 shares of the luxury accessories retailer’s stock worth $376,000 after purchasing an additional 113 shares during the period. Earned Wealth Advisors LLC raised its stake in Tapestry by 1.6% during the second quarter. Earned Wealth Advisors LLC now owns 7,304 shares of the luxury accessories retailer’s stock worth $641,000 after acquiring an additional 116 shares during the period. Finally, Blue Trust Inc. boosted its position in Tapestry by 19.7% during the 3rd quarter. Blue Trust Inc. now owns 741 shares of the luxury accessories retailer’s stock valued at $84,000 after purchasing an additional 122 shares during the period. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

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.