Coronation Fund Managers Ltd. Sells 471,640 Shares of Tapestry, Inc. (NYSE:TPR)

Key Points

• Coronation Fund Managers Ltd. significantly reduced its stake in Tapestry, Inc. by 70.1%, selling 471,640 shares, and now holds approximately 201,593 shares valued at $14.19 million.
• Institutional investors collectively own 90.77% of Tapestry, with other firms like Virtu Financial and Atlas Capital Advisors increasing their stakes substantially during the same quarter.
• Analysts are optimistic about Tapestry, with the stock receiving multiple buy ratings and target price increases, notably from Citigroup ($94) and Morgan Stanley ($115), reflecting a positive outlook on its earnings performance.

Coronation Fund Managers Ltd. trimmed its holdings in Tapestry, Inc. (NYSE:TPR - Free Report) by 70.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 201,593 shares of the luxury accessories retailer's stock after selling 471,640 shares during the period. Coronation Fund Managers Ltd. owned 0.10% of Tapestry worth $14,194,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Harbour Investments Inc. lifted its stake in Tapestry by 120.1% in the 1st quarter. Harbour Investments Inc. now owns 361 shares of the luxury accessories retailer's stock valued at $25,000 after purchasing an additional 197 shares during the last quarter. Greenline Partners LLC acquired a new position in shares of Tapestry during the fourth quarter worth $29,000. MorganRosel Wealth Management LLC bought a new position in shares of Tapestry in the 1st quarter valued at $35,000. Opal Wealth Advisors LLC acquired a new stake in shares of Tapestry during the 1st quarter valued at $35,000. Finally, Coppell Advisory Solutions LLC boosted its holdings in shares of Tapestry by 40.7% during the 4th quarter. Coppell Advisory Solutions LLC now owns 519 shares of the luxury accessories retailer's stock valued at $34,000 after acquiring an additional 150 shares in the last quarter. 90.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TPR. TD Cowen upgraded shares of Tapestry from a "hold" rating to a "buy" rating and set a $100.00 price objective for the company in a report on Thursday, June 12th. Barclays reaffirmed an "overweight" rating and set a $105.00 price target (up previously from $98.00) on shares of Tapestry in a research note on Friday, July 11th. Morgan Stanley lifted their price target on shares of Tapestry from $90.00 to $115.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Cowen restated a "buy" rating on shares of Tapestry in a report on Thursday, August 7th. Finally, UBS Group reaffirmed a "neutral" rating and set a $112.00 target price (up from $73.00) on shares of Tapestry in a research report on Monday, August 4th. Four research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $101.56.

Tapestry Price Performance

Shares of TPR traded down $15.97 during midday trading on Thursday, hitting $97.56. 10,164,598 shares of the company traded hands, compared to its average volume of 4,937,743. The stock has a 50-day moving average of $96.10 and a 200-day moving average of $82.33. The firm has a market cap of $20.26 billion, a P/E ratio of 25.66, a PEG ratio of 2.23 and a beta of 1.51. Tapestry, Inc. has a one year low of $38.09 and a one year high of $114.05. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.76 and a quick ratio of 1.22.

Tapestry (NYSE:TPR - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The luxury accessories retailer reported $1.04 EPS for the quarter, beating the consensus estimate of $1.02 by $0.02. The firm had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.67 billion. Tapestry had a net margin of 12.50% and a return on equity of 51.84%. The business's quarterly revenue was up 8.3% compared to the same quarter last year. During the same period last year, the firm earned $0.92 EPS. As a group, sell-side analysts predict that Tapestry, Inc. will post 4.91 EPS for the current fiscal year.

Tapestry Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 22nd. Shareholders of record on Friday, September 5th will be paid a $0.40 dividend. 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 yield of 1.6%. Tapestry's dividend payout ratio is currently 36.84%.

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.