Capri (NYSE:CPRI) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Capri from a "strong sell" rating to a "hold" rating, reflecting a shift in analysts' perspective on the stock.
• Recent reports from various analysts, including UBS and JPMorgan Chase, have resulted in upgraded price targets for Capri, indicating increased optimism about its market performance.
• Despite a decline in revenue year-over-year, Capri reported earnings per share of $0.50 for the quarter, significantly beating the consensus estimate of $0.13.

Zacks Research upgraded shares of Capri (NYSE:CPRI - Free Report) from a strong sell rating to a hold rating in a research note released on Tuesday,Zacks.com reports.

CPRI has been the topic of several other reports. UBS Group lifted their target price on shares of Capri from $18.00 to $23.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Telsey Advisory Group reiterated a "market perform" rating and set a $22.00 target price (up from $20.00) on shares of Capri in a research report on Wednesday, August 6th. Wall Street Zen upgraded shares of Capri from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, JPMorgan Chase & Co. upgraded shares of Capri from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $21.00 to $30.00 in a research report on Wednesday, August 13th. Five investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $24.08.

Capri Price Performance

Shares of Capri stock traded down $0.99 during midday trading on Tuesday, hitting $20.58. 2,965,934 shares of the company traded hands, compared to its average volume of 3,609,767. The stock has a market cap of $2.45 billion, a price-to-earnings ratio of -2.19, a PEG ratio of 0.44 and a beta of 1.75. The company has a debt-to-equity ratio of 3.97, a quick ratio of 0.61 and a current ratio of 1.17. The firm's fifty day moving average price is $19.37 and its 200-day moving average price is $18.46. Capri has a 12 month low of $11.86 and a 12 month high of $43.34.

Capri (NYSE:CPRI - Get Free Report) last announced 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. The company had revenue of $797.00 million for the quarter, compared to analyst estimates of $773.18 million. Capri had a negative net margin of 26.73% and a negative return on equity of 53.50%. The firm's revenue was down 6.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.04 EPS. As a group, sell-side analysts forecast that Capri will post 0.98 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of CPRI. Norges Bank acquired a new position in shares of Capri in the 2nd quarter worth approximately $55,906,000. Junto Capital Management LP acquired a new position in shares of Capri in the 4th quarter worth approximately $26,112,000. American Century Companies Inc. lifted its position in shares of Capri by 143.3% in the 1st quarter. American Century Companies Inc. now owns 2,039,887 shares of the company's stock worth $40,247,000 after purchasing an additional 1,201,488 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of Capri by 72.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,595,029 shares of the company's stock valued at $54,647,000 after acquiring an additional 1,088,051 shares during the period. Finally, DME Capital Management LP lifted its position in shares of Capri by 93.6% during the 4th quarter. DME Capital Management LP now owns 2,103,717 shares of the company's stock valued at $44,304,000 after acquiring an additional 1,017,072 shares during the period. Institutional investors and hedge funds own 84.34% of the company's stock.

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.