Coronation Fund Managers Ltd. Decreases Stock Holdings in Tapestry, Inc. $TPR

Key Points

• Coronation Fund Managers Ltd. reduced its stake in Tapestry, Inc. by 1.3%, selling 2,719 shares and holding a total of 198,874 shares, making it the fund's 28th largest position.
• Tapestry recently reported better-than-expected earnings for the quarter, with $1.04 EPS compared to estimates of $1.02, driving a revenue increase of 8.3% year-over-year.
• The company declared a quarterly dividend of $0.40, up from the previous $0.35, signaling confidence in its financial health despite a high dividend payout ratio of 253.97%.

Coronation Fund Managers Ltd. trimmed its holdings in shares of Tapestry, Inc. (NYSE:TPR - Free Report) by 1.3% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 198,874 shares of the luxury accessories retailer's stock after selling 2,719 shares during the quarter. Tapestry accounts for about 0.9% of Coronation Fund Managers Ltd.'s holdings, making the stock its 28th largest position. Coronation Fund Managers Ltd. owned about 0.10% of Tapestry worth $17,463,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of TPR. WT Asset Management Ltd increased its position in Tapestry by 140.6% in the first quarter. WT Asset Management Ltd now owns 1,574,634 shares of the luxury accessories retailer's stock worth $110,870,000 after buying an additional 920,087 shares during the last quarter. Nuveen LLC bought a new position in shares of Tapestry in the first quarter worth $59,133,000. AQR Capital Management LLC boosted its holdings in shares of Tapestry by 47.4% in the first quarter. AQR Capital Management LLC now owns 2,607,742 shares of the luxury accessories retailer's stock worth $177,405,000 after acquiring an additional 838,057 shares during the period. Samlyn Capital LLC boosted its holdings in shares of Tapestry by 50.2% in the first quarter. Samlyn Capital LLC now owns 1,972,241 shares of the luxury accessories retailer's stock worth $138,865,000 after acquiring an additional 658,889 shares during the period. Finally, WCM Investment Management LLC bought a new position in shares of Tapestry in the first quarter worth $37,495,000. 90.77% of the stock is owned by hedge funds and other institutional investors.

Tapestry Stock Down 0.4%

TPR stock opened at $116.32 on Tuesday. Tapestry, Inc. has a fifty-two week low of $43.07 and a fifty-two week high of $118.56. The business's 50 day moving average price is $108.39 and its two-hundred day moving average price is $92.80. 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 company has a market capitalization of $24.08 billion, a price-to-earnings ratio of 184.63, a price-to-earnings-growth ratio of 2.82 and a beta of 1.57.

Tapestry (NYSE:TPR - Get Free Report) last posted its 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 firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.67 billion. During the same quarter in the prior year, the business earned $0.92 EPS. 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, analysts forecast that Tapestry, Inc. will post 4.91 earnings per share for the current fiscal year.

Tapestry Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 22nd. Investors of record on Friday, September 5th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Friday, September 5th. This is an increase from Tapestry's previous quarterly dividend of $0.35. Tapestry's dividend payout ratio (DPR) is currently 253.97%.

Analyst Upgrades and Downgrades

TPR has been the topic of several recent research reports. Wells Fargo & Company increased their price objective on Tapestry from $100.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, August 14th. Bank of America cut shares of Tapestry from a "buy" rating to a "neutral" rating and increased their price target for the company from $95.00 to $115.00 in a research report on Tuesday, July 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of Tapestry in a research report on Wednesday, October 8th. UBS Group reduced their price target on shares of Tapestry from $112.00 to $105.00 and set a "neutral" rating on the stock in a research report on Friday, August 15th. Finally, BTIG Research initiated coverage on Tapestry in a research note on Tuesday, October 14th. They issued a "buy" rating and a $140.00 target price for the company. Eighteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $110.00.

Insider Activity at Tapestry

In related news, VP Manesh Dadlani sold 7,882 shares of the company's stock in a transaction that occurred 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 sale, the vice president owned 21,098 shares in the company, valued at $2,089,756.90. This represents a 27.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Alan Ka Ming Lau sold 11,320 shares of the company's 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 sale, the director owned 8,153 shares in the company, valued at $865,767.07. The trade was a 58.13% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.32% of the company's stock.

Tapestry 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.

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