Hsbc Holdings PLC Grows Stake in Tapestry, Inc. $TPR

Key Points

• HSBC Holdings PLC increased its stake in Tapestry by 13.1% in the fourth quarter, ending with 386,483 shares valued at about $49.4 million.
• Several other institutional investors also added to or initiated positions in Tapestry, and the stock is now 90.77% owned by institutions.
• Tapestry reported strong quarterly results, with EPS of $1.66 beating estimates and revenue rising 21.2% year over year; analysts currently have a Moderate Buy consensus with an average target price of $167.65.

Hsbc Holdings PLC boosted its stake in Tapestry, Inc. (NYSE:TPR - Free Report) by 13.1% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 386,483 shares of the luxury accessories retailer's stock after purchasing an additional 44,755 shares during the quarter. Hsbc Holdings PLC owned about 0.19% of Tapestry worth $49,403,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of TPR. Acumen Wealth Advisors LLC purchased a new stake in shares of Tapestry in the fourth quarter worth approximately $28,000. Triumph Capital Management purchased a new stake in shares of Tapestry in the 3rd quarter worth approximately $29,000. Steph & Co. boosted its position in Tapestry by 128.7% during the fourth quarter. Steph & Co. now owns 231 shares of the luxury accessories retailer's stock valued at $30,000 after purchasing an additional 130 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new position in shares of Tapestry in the 4th quarter worth approximately $31,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA purchased a new position in Tapestry in the fourth quarter worth $32,000. 90.77% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Tapestry

In other Tapestry news, CEO Joanne C. Crevoiserat sold 27,776 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $132.89, for a total transaction of $3,691,152.64. Following the transaction, the chief executive officer directly owned 652,434 shares in the company, valued at $86,701,954.26. This represents a 4.08% 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. Also, CEO Todd Kahn sold 19,557 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $140.02, for a total value of $2,738,371.14. Following the sale, the chief executive officer directly owned 123,258 shares in the company, valued at approximately $17,258,585.16. This represents a 13.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.32% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on TPR. Robert W. Baird boosted their price objective on shares of Tapestry from $160.00 to $165.00 and gave the company an "outperform" rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. lifted their price objective on shares of Tapestry from $200.00 to $205.00 and gave the company an "overweight" rating in a report on Friday, June 12th. BTIG Research reaffirmed a "buy" rating and set a $180.00 target price on shares of Tapestry in a research note on Wednesday, June 10th. Citigroup boosted their price objective on Tapestry from $165.00 to $170.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Finally, Wall Street Zen raised Tapestry from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $167.65.

Tapestry Stock Performance

Shares of TPR opened at $144.19 on Monday. The firm has a market cap of $29.13 billion, a PE ratio of 46.22, a price-to-earnings-growth ratio of 1.34 and a beta of 1.43. The company has a current ratio of 1.84, a quick ratio of 1.27 and a debt-to-equity ratio of 3.48. The company's 50 day simple moving average is $141.69 and its 200-day simple moving average is $141.17. Tapestry, Inc. has a 12-month low of $86.68 and a 12-month high of $161.97.

Tapestry (NYSE:TPR - Get Free Report) last released its earnings results on Thursday, May 7th. The luxury accessories retailer reported $1.66 EPS for the quarter, beating analysts' consensus estimates of $1.30 by $0.36. Tapestry had a return on equity of 229.70% and a net margin of 8.44%.The company had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.79 billion. During the same quarter last year, the company earned $1.03 earnings per share. Tapestry's quarterly revenue was up 21.2% compared to the same quarter last year. Tapestry has set its FY 2026 guidance at 6.950-6.950 EPS. As a group, equities analysts predict that Tapestry, Inc. will post 6.95 EPS for the current year.

Tapestry Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 22nd. Stockholders of record on Friday, June 5th were issued a dividend of $0.40 per share. The ex-dividend date was Friday, June 5th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.1%. Tapestry's payout ratio is presently 51.28%.

Tapestry 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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