United Services Automobile Association Acquires Shares of 5,281 Tapestry, Inc. $TPR

Key Points

• United Services Automobile Association acquired 5,281 shares of Tapestry, Inc. valued at approximately $371,000 in the first quarter, adding to a trend of growing institutional investment in the company.
• Tapestry recently reported a quarterly earnings of $1.04 EPS, surpassing the consensus estimate, and its revenue increased by 8.3% year-over-year.
• The company announced an increase in its quarterly dividend to $0.40 per share, signifying a positive shift from the previous $0.35

United Services Automobile Association bought a new stake in shares of Tapestry, Inc. (NYSE:TPR - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 5,281 shares of the luxury accessories retailer's stock, valued at approximately $371,000.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. AQR Capital Management LLC raised its position in Tapestry by 47.4% during the 1st quarter. AQR Capital Management LLC now owns 2,607,742 shares of the luxury accessories retailer's stock valued at $177,405,000 after purchasing an additional 838,057 shares in the last quarter. Southpoint Capital Advisors LP raised its position in Tapestry by 25.0% during the 1st quarter. Southpoint Capital Advisors LP now owns 2,500,000 shares of the luxury accessories retailer's stock valued at $176,025,000 after purchasing an additional 500,000 shares in the last quarter. Samlyn Capital LLC increased its holdings in shares of Tapestry by 50.2% in the 1st quarter. Samlyn Capital LLC now owns 1,972,241 shares of the luxury accessories retailer's stock valued at $138,865,000 after acquiring an additional 658,889 shares during the period. Goldman Sachs Group Inc. increased its holdings in shares of Tapestry by 21.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,651,892 shares of the luxury accessories retailer's stock valued at $116,310,000 after acquiring an additional 288,219 shares during the period. Finally, WT Asset Management Ltd increased its holdings in shares of Tapestry by 140.6% in the 1st quarter. WT Asset Management Ltd now owns 1,574,634 shares of the luxury accessories retailer's stock valued at $110,870,000 after acquiring an additional 920,087 shares during the period. 90.77% of the stock is owned by institutional investors.

Tapestry Stock Performance

Shares of TPR stock traded up $3.50 on Monday, hitting $109.97. The company had a trading volume of 3,415,413 shares, compared to its average volume of 4,871,085. The firm has a market cap of $22.89 billion, a P/E ratio of 174.56, a price-to-earnings-growth ratio of 2.57 and a beta of 1.52. The company has a 50-day moving average price of $103.86 and a 200-day moving average price of $85.54. The company has a quick ratio of 1.31, a current ratio of 1.87 and a debt-to-equity ratio of 2.77. Tapestry, Inc. has a twelve month low of $42.06 and a twelve month high of $114.05.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The luxury accessories retailer reported $1.04 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.02. Tapestry had a return on equity of 68.02% and a net margin of 2.61%.The company had revenue of $1.72 billion during the quarter, compared to analysts' expectations of $1.67 billion. During the same quarter in the prior year, the firm posted $0.92 EPS. Tapestry's quarterly revenue was up 8.3% compared to the same quarter last year. Tapestry has set its FY 2026 guidance at 5.300-5.450 EPS. As a group, equities research analysts predict that Tapestry, Inc. will post 4.91 earnings per share for the current fiscal year.

Tapestry Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 22nd. Investors of record on Friday, September 5th will be given a $0.40 dividend. The ex-dividend date is Friday, September 5th. This is a positive change from Tapestry's previous quarterly dividend of $0.35. This represents a $1.60 annualized dividend and a yield of 1.5%. Tapestry's dividend payout ratio (DPR) is currently 253.97%.

Insider Activity at Tapestry

In related news, Director Alan Ka Ming Lau sold 11,320 shares of the stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $106.19, for a total value of $1,202,070.80. Following the completion of the transaction, the director directly owned 8,153 shares in the company, valued at approximately $865,767.07. This represents a 58.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Manesh Dadlani sold 7,882 shares of the firm's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $99.05, for a total value of $780,712.10. Following the transaction, the vice president owned 21,098 shares of the company's stock, valued at approximately $2,089,756.90. This represents a 27.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.18% of the company's stock.

Wall Street Analyst Weigh In

TPR has been the topic of a number of analyst reports. JPMorgan Chase & Co. lifted their price target on Tapestry from $139.00 to $142.00 and gave the company an "overweight" rating in a report on Thursday. Sanford C. Bernstein reiterated an "outperform" rating and issued a $112.00 price target on shares of Tapestry in a report on Friday, August 15th. Evercore ISI cut their price target on Tapestry from $130.00 to $125.00 and set an "outperform" rating on the stock in a report on Friday, August 15th. Barclays lifted their price target on Tapestry from $111.00 to $127.00 and gave the company an "overweight" rating in a report on Thursday. Finally, Bank of America downgraded Tapestry from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $95.00 to $115.00 in a research note on Tuesday, July 29th. Seventeen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Tapestry presently has an average rating of "Moderate Buy" and a consensus target price of $106.47.

Tapestry Company Profile

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags; and women's accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.