Tapestry (NYSE:TPR) Hits New 52-Week High – Still a Buy?

Tapestry, Inc. (NYSE:TPR)’s stock price hit a new 52-week high during trading on Tuesday . The stock traded as high as $131.77 and last traded at $131.7330, with a volume of 284635 shares. The stock had previously closed at $128.53.

Analyst Ratings Changes

A number of research firms have recently weighed in on TPR. Wall Street Zen downgraded Tapestry from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 6th. Guggenheim assumed coverage on Tapestry in a report on Tuesday, December 9th. They set a “neutral” rating on the stock. Wells Fargo & Company upped their price target on Tapestry from $125.00 to $135.00 and gave the company an “overweight” rating in a research note on Tuesday, December 16th. Raymond James Financial increased their price target on shares of Tapestry from $115.00 to $130.00 and gave the company an “outperform” rating in a research report on Tuesday, October 21st. Finally, The Goldman Sachs Group boosted their price target on shares of Tapestry from $116.00 to $130.00 and gave the company a “buy” rating in a report on Monday, October 6th. Seventeen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $125.26.

Tapestry Stock Up 3.8%

The company has a market capitalization of $27.30 billion, a price-to-earnings ratio of 119.03, a P/E/G ratio of 2.65 and a beta of 1.63. The stock’s fifty day moving average price is $115.04 and its 200-day moving average price is $108.68. The company has a quick ratio of 0.93, a current ratio of 1.52 and a debt-to-equity ratio of 5.95.

Tapestry (NYSE:TPR) last announced its quarterly earnings data on Thursday, November 6th. The luxury accessories retailer reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.13. Tapestry had a return on equity of 116.42% and a net margin of 3.77%.The company had revenue of $1.70 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same quarter last year, the company earned $0.84 EPS. Tapestry’s revenue for the quarter was up 13.1% compared to the same quarter last year. Tapestry has set its FY 2026 guidance at 5.450-5.600 EPS. On average, sell-side analysts predict that Tapestry, Inc. will post 4.91 earnings per share for the current fiscal year.

Tapestry Dividend Announcement

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

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

Insider Activity

In other news, CFO Scott A. Roe sold 18,794 shares of the firm’s stock in a transaction dated Friday, November 21st. The shares were 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 in the company, valued at approximately $15,533,422.65. This trade represents a 11.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider David E. Howard sold 25,029 shares of the stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $102.50, for a total transaction of $2,565,472.50. Following the completion of the transaction, the insider directly owned 55,354 shares in the company, valued at approximately $5,673,785. This represents a 31.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 115,485 shares of company stock valued at $12,034,058. 1.32% of the stock is owned by insiders.

Institutional Investors Weigh In On Tapestry

A number of hedge funds and other institutional investors have recently modified their holdings of TPR. Cloud Capital Management LLC acquired a new stake in Tapestry in the 3rd quarter worth about $26,000. Triumph Capital Management bought a new position in Tapestry during the 3rd quarter worth $29,000. First PREMIER Bank acquired a new position in Tapestry in the 2nd quarter valued at $25,000. Vestor Capital LLC acquired a new position in Tapestry in the 2nd quarter valued at $27,000. Finally, Flaharty Asset Management LLC bought a new stake in shares of Tapestry during the 1st quarter valued at $25,000. Institutional investors and hedge funds own 90.77% of the company’s stock.

Tapestry Company Profile

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.