Ameriprise Financial Inc. Reduces Stock Position in Tapestry, Inc. $TPR

Key Points

• Ameriprise Financial Inc. has reduced its shareholding in Tapestry, Inc. by 54.4%, now owning 3,693,414 shares valued at $260 million.
• Tapestry reported a Q1 EPS of $1.04, surpassing estimates, with a year-over-year revenue increase of 8.3% to $1.72 billion.
• The company recently announced a quarterly dividend increase to $0.40 per share, up from $0.35, resulting in a 1.6% yield.

Ameriprise Financial Inc. lowered its stake in shares of Tapestry, Inc. (NYSE:TPR - Free Report) by 54.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,693,414 shares of the luxury accessories retailer's stock after selling 4,399,429 shares during the quarter. Ameriprise Financial Inc. owned about 1.78% of Tapestry worth $260,059,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of TPR. Southpoint Capital Advisors LP purchased a new position in shares of Tapestry during the fourth quarter valued at about $130,660,000. Price T Rowe Associates Inc. MD increased its position in shares of Tapestry by 593.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,191,904 shares of the luxury accessories retailer's stock valued at $143,198,000 after buying an additional 1,875,753 shares during the period. Point72 Asset Management L.P. purchased a new position in shares of Tapestry during the fourth quarter valued at about $101,433,000. Candlestick Capital Management LP purchased a new position in shares of Tapestry during the fourth quarter valued at about $66,902,000. Finally, Point72 Hong Kong Ltd purchased a new position in shares of Tapestry during the fourth quarter valued at about $65,751,000. Hedge funds and other institutional investors own 90.77% of the company's stock.

Tapestry Stock Up 2.4%

Shares of NYSE:TPR traded up $2.39 during trading on Tuesday, reaching $100.86. 15,803,982 shares of the stock traded hands, compared to its average volume of 4,987,633. The stock has a 50-day moving average of $99.01 and a two-hundred day moving average of $83.74. Tapestry, Inc. has a 52-week low of $39.40 and a 52-week high of $114.05. The company has a debt-to-equity ratio of 2.77, a quick ratio of 1.31 and a current ratio of 1.87. The stock has a market cap of $20.99 billion, a P/E ratio of 160.10, a price-to-earnings-growth ratio of 2.51 and a beta of 1.51.

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

Tapestry Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 22nd. Stockholders of record on Friday, September 5th will be issued a dividend of $0.40 per share. 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 dividend on an annualized basis and a dividend yield of 1.6%. Tapestry's dividend payout ratio is currently 222.22%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. Telsey Advisory Group boosted their price target on shares of Tapestry from $92.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, August 11th. Argus upped their price objective on shares of Tapestry from $78.00 to $92.00 and gave the stock a "buy" rating in a report on Tuesday, June 17th. Wells Fargo & Company upped their price objective on shares of Tapestry from $100.00 to $120.00 and gave the stock an "overweight" rating in a report on Thursday, August 14th. TD Cowen upgraded shares of Tapestry from a "hold" rating to a "buy" rating and set a $100.00 price objective on the stock in a report on Thursday, June 12th. Finally, Raymond James Financial restated an "outperform" rating and issued a $115.00 price objective (up previously from $85.00) on shares of Tapestry in a report on Tuesday, July 22nd. Seventeen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $105.47.

About Tapestry

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.