Wells Fargo & Company Issues Pessimistic Forecast for Tapestry (NYSE:TPR) Stock Price

Key Points

• Wells Fargo lowered its Tapestry price target from $160 to $150 while maintaining an “overweight” rating, implying approximately 29.7% upside from the reported $115.62 share price.
• Analyst sentiment remains positive overall: Tapestry has a “Moderate Buy” consensus rating and an average price target of $170, supported by 2 Strong Buy, 15 Buy, and 4 Hold ratings.
• Tapestry recently exceeded quarterly expectations, reporting $1.32 in EPS versus a $1.28 estimate and $1.88 billion in revenue, up 8.9% year over year; however, company insiders have also sold shares, including the CEO’s 27,761-share sale.

Tapestry (NYSE:TPR - Get Free Report) had its target price reduced by research analysts at Wells Fargo & Company from $160.00 to $150.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the luxury accessories retailer's stock. Wells Fargo & Company's target price indicates a potential upside of 29.74% from the company's current price.

TPR has been the topic of a number of other research reports. Robert W. Baird decreased their price objective on shares of Tapestry from $165.00 to $150.00 and set an "outperform" rating on the stock in a research report on Tuesday. Barclays increased their target price on shares of Tapestry from $182.00 to $185.00 and gave the stock an "overweight" rating in a report on Friday, August 14th. JPMorgan Chase & Co. raised their target price on Tapestry from $205.00 to $211.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 4th. Sanford C. Bernstein reissued a "market perform" rating and issued a $185.00 target price (up from $180.00) on shares of Tapestry in a research note on Friday, August 14th. Finally, Telsey Advisory Group boosted their price target on Tapestry from $160.00 to $175.00 and gave the company an "outperform" rating in a report on Thursday, August 6th. 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.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $170.00.

Tapestry Stock Performance

NYSE:TPR opened at $115.62 on Thursday. The firm has a market cap of $23.05 billion, a PE ratio of 15.88, a price-to-earnings-growth ratio of 1.40 and a beta of 1.42. Tapestry has a fifty-two week low of $93.00 and a fifty-two week high of $164.80. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.25 and a current ratio of 1.75. The business has a 50 day moving average price of $118.19 and a 200-day moving average price of $137.26.

Tapestry (NYSE:TPR - Get Free Report) last issued its earnings results on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share (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 analysts' expectations of $1.87 billion. During the same quarter last year, the business earned $1.04 earnings per share. The business's revenue was up 8.9% on a year-over-year basis. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Equities research analysts predict that Tapestry will post 7.94 earnings per share for the current year.

Insider Activity

In other news, insider Denise Kulikowsky sold 5,810 shares of the firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total value of $670,357.80. Following the completion of the sale, the insider directly owned 21,136 shares of the company's stock, valued at approximately $2,438,671.68. This trade represents a 21.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Joanne Crevoiserat sold 27,761 shares of Tapestry stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the sale, the chief executive officer directly owned 666,149 shares in the company, valued at $88,244,758.03. The trade was a 4.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.28% of the company's stock.

Institutional Trading of Tapestry

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Sumitomo Mitsui Trust Group Inc. increased its stake in Tapestry by 2.1% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 416,968 shares of the luxury accessories retailer's stock worth $47,968,000 after purchasing an additional 8,686 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Tapestry during the third quarter worth $8,833,000. Stevens Capital Partners increased its holdings in Tapestry by 16.3% in the third quarter. Stevens Capital Partners now owns 90,914 shares of the luxury accessories retailer's stock valued at $10,459,000 after buying an additional 12,733 shares in the last quarter. ProShare Advisors LLC grew its stake in Tapestry by 0.6% in the 3rd quarter. ProShare Advisors LLC now owns 32,276 shares of the luxury accessories retailer's stock valued at $3,713,000 after acquiring an additional 193 shares during the period. Finally, Summit Global Investments increased its stake in Tapestry by 7.9% during the 3rd quarter. Summit Global Investments now owns 9,056 shares of the luxury accessories retailer's stock worth $1,042,000 after buying an additional 663 shares in the last quarter. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

Tapestry Company Profile

Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company's portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women's footwear.

Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.

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