Tapestry, Inc. (NYSE:TPR) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Tapestry, with 15 buy, two strong-buy and four hold ratings among 21 brokerages. The average 12-month price target is $175.13.
• Tapestry exceeded quarterly expectations, reporting $1.32 in earnings per share versus the $1.28 consensus and $1.88 billion in revenue, up 8.9% year over year. Analysts project $7.94 in current-year EPS.
• The company raised its quarterly dividend to $0.4625 per share, or $1.85 annualized, producing a 1.5% yield; institutional investors own 90.77% of outstanding shares.

Tapestry, Inc. (NYSE:TPR - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-one brokerages that are covering the stock, MarketBeat.com reports. Four research analysts have rated the stock with a hold recommendation, fifteen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year target price among brokers that have covered the stock in the last year is $175.1250.

Several analysts have issued reports on the stock. Wall Street Zen downgraded shares of Tapestry from a "buy" rating to a "hold" rating in a research report on Sunday, August 16th. Barclays boosted their target price on shares of Tapestry from $182.00 to $185.00 and gave the stock an "overweight" rating in a research report on Friday, August 14th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $185.00 price target (up from $180.00) on shares of Tapestry in a report on Friday, August 14th. Daiwa Securities Group raised shares of Tapestry from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 17th. Finally, Wells Fargo & Company cut their price objective on shares of Tapestry from $165.00 to $160.00 and set an "overweight" rating on the stock in a report on Thursday, August 13th.

Insiders Place Their Bets

In other Tapestry news, CEO Joanne C. Crevoiserat sold 27,761 shares of the stock in a transaction on 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 transaction, the chief executive officer directly owned 666,149 shares in the company, valued at $88,244,758.03. This represents a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.32% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tapestry

A number of institutional investors have recently modified their holdings of TPR. Eurizon Capital SGR S.p.A. bought a new stake in Tapestry in the fourth quarter valued at about $8,109,000. Norges Bank acquired a new stake in Tapestry in the fourth quarter worth $345,349,000. SEB Asset Management AB acquired a new stake in Tapestry during the 1st quarter worth $59,525,000. Keystone Investors PTE Ltd. raised its position in shares of Tapestry by 17.4% during the fourth quarter. Keystone Investors PTE Ltd. now owns 62,622 shares of the luxury accessories retailer's stock worth $8,001,000 after purchasing an additional 9,303 shares during the period. Finally, Vega Investment Solutions acquired a new stake in Tapestry during the 2nd quarter worth approximately $10,322,000. Institutional investors and hedge funds own 90.77% of the company's stock.

Tapestry Stock Performance

Tapestry stock opened at $125.75 on Monday. The stock's 50-day moving average is $143.26 and its 200-day moving average is $144.41. The company has a market cap of $25.07 billion, a price-to-earnings ratio of 17.25, a price-to-earnings-growth ratio of 1.59 and a beta of 1.43. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.75 and a quick ratio of 1.25. Tapestry has a 12 month low of $93.00 and a 12 month high of $164.80.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.04. The business had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.87 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%.The company's revenue was up 8.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.04 EPS. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Equities analysts anticipate that Tapestry will post 7.94 earnings per share for the current year.

Tapestry Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 21st. Investors of record on Friday, September 4th will be issued a $0.4625 dividend. This is an increase from Tapestry's previous quarterly dividend of $0.40. This represents a $1.85 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, September 4th. Tapestry's dividend payout ratio (DPR) is currently 21.95%.

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.

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