Capri (NYSE:CPRI) Shares Gap Up - Should You Buy?

Key Points

• Capri Holdings Limited's share price opened significantly higher at $21.09, up from a previous close of $19.62, amidst active trading with over 1.25 million shares exchanged.
• Analysts have upgraded Capri's rating, with JPMorgan Chase raising its price target from $21.00 to $30.00, indicating increasing optimism regarding the company's future performance.
• Despite beating earnings expectations with $0.50 EPS and reporting $797.00 million in revenue, Capri experienced a 6.0% decline in revenue compared to the previous year, highlighting ongoing challenges.

Capri Holdings Limited (NYSE:CPRI - Get Free Report)'s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $19.62, but opened at $21.09. Capri shares last traded at $21.03, with a volume of 1,255,126 shares trading hands.

Analyst Upgrades and Downgrades

CPRI has been the topic of a number of analyst reports. Wall Street Zen raised Capri from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. UBS Group lifted their price target on Capri from $18.00 to $23.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $22.00 price target (up previously from $20.00) on shares of Capri in a report on Wednesday, August 6th. Finally, JPMorgan Chase & Co. raised shares of Capri from a "neutral" rating to an "overweight" rating and upped their price target for the stock from $21.00 to $30.00 in a report on Wednesday. Eight research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $24.08.

Capri Trading Down 1.8%

The company has a market capitalization of $2.50 billion, a P/E ratio of -2.23, a PEG ratio of 0.44 and a beta of 1.72. The business has a 50 day moving average price of $18.64 and a 200 day moving average price of $18.58. The company has a current ratio of 1.17, a quick ratio of 0.61 and a debt-to-equity ratio of 3.97.

Capri (NYSE:CPRI - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.37. Capri had a negative return on equity of 53.50% and a negative net margin of 26.73%. The firm had revenue of $797.00 million for the quarter, compared to analyst estimates of $773.18 million. During the same period in the previous year, the firm earned $0.04 earnings per share. The company's revenue was down 6.0% compared to the same quarter last year. Analysts anticipate that Capri Holdings Limited will post 0.98 EPS for the current year.

Institutional Investors Weigh In On Capri

Several large investors have recently added to or reduced their stakes in CPRI. CWM LLC boosted its position in Capri by 37.2% during the 2nd quarter. CWM LLC now owns 2,360 shares of the company's stock valued at $42,000 after acquiring an additional 640 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of Capri by 5.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 12,320 shares of the company's stock worth $243,000 after purchasing an additional 667 shares during the last quarter. Teacher Retirement System of Texas lifted its holdings in Capri by 3.9% in the second quarter. Teacher Retirement System of Texas now owns 17,906 shares of the company's stock valued at $317,000 after acquiring an additional 671 shares during the last quarter. Principal Financial Group Inc. raised its position in Capri by 0.3% in the first quarter. Principal Financial Group Inc. now owns 271,400 shares of the company's stock valued at $5,355,000 after purchasing an additional 709 shares during the period. Finally, California State Teachers Retirement System increased its position in shares of Capri by 0.7% during the second quarter. California State Teachers Retirement System now owns 108,789 shares of the company's stock worth $1,926,000 after acquiring an additional 734 shares during the period. 84.34% of the stock is owned by institutional investors.

Capri Company Profile

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites.