Tapestry (NYSE:TPR) Trading Down 4% – Here’s Why

Tapestry, Inc. (NYSE:TPR) was down 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.

Wall Street Analyst Weigh In

TPR has been the topic of several analyst reports. Morgan Stanley cut their price objective on shares of Tapestry from $164.00 to $159.00 and set an “overweight” rating on the stock in a report on Friday, August 14th. Sanford C. Bernstein reiterated a “market perform” rating and set a $185.00 target price (up from $180.00) on shares of Tapestry in a research report on Friday, August 14th. Wells Fargo & Company cut their price target on Tapestry from $165.00 to $160.00 and set an “overweight” rating on the stock in a research note on Thursday, August 13th. Wall Street Zen lowered Tapestry from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Finally, UBS Group lifted their price objective on Tapestry from $230.00 to $232.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Tapestry presently has an average rating of “Moderate Buy” and a consensus target price of $175.12.

Tapestry Stock Up 2.0%

The company has a market capitalization of $25.07 billion, a P/E ratio of 17.25, a P/E/G ratio of 1.56 and a beta of 1.43. The company has a quick ratio of 1.25, a current ratio of 1.75 and a debt-to-equity ratio of 3.44. The firm has a fifty day simple moving average of $143.26 and a 200-day simple moving average of $144.48.

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

Tapestry Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 21st. Investors of record on Friday, September 4th will be issued a dividend of $0.4625 per share. The ex-dividend date is Friday, September 4th. This is a positive change from Tapestry’s previous quarterly dividend of $0.40. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.5%. Tapestry’s dividend payout ratio (DPR) is 21.95%.

Insider Buying and Selling

In related news, CEO Joanne C. Crevoiserat sold 27,761 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were 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. This represents a 4.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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.

Institutional Trading of Tapestry

A number of institutional investors have recently modified their holdings of the company. Cetera Trust Company N.A bought a new position in shares of Tapestry during the second quarter worth about $26,000. Acumen Wealth Advisors LLC bought a new stake in Tapestry in the 4th quarter valued at approximately $28,000. Triumph Capital Management bought a new stake in Tapestry in the 3rd quarter valued at approximately $29,000. Keating Financial Advisory Services Inc. acquired a new position in Tapestry during the 2nd quarter worth approximately $31,000. Finally, Virtus Advisers LLC acquired a new position in Tapestry during the 2nd quarter worth approximately $32,000. 90.77% of the stock is currently owned by 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.