IPG Investment Advisors LLC Purchases New Stake in Ralph Lauren Corporation (NYSE:RL)

Key Points

• IPG Investment Advisors LLC has acquired a new stake in Ralph Lauren Corporation, purchasing 5,700 shares valued at approximately $1,263,000.
• Ralph Lauren has announced a share repurchase plan authorizing up to $1.50 billion to buy back 8.8% of its shares, signaling management's belief that the stock is undervalued.
• The company recently increased its quarterly dividend to $0.9125 per share, reflecting a commitment to returning value to shareholders amid strong financial performance.

IPG Investment Advisors LLC acquired a new position in shares of Ralph Lauren Corporation (NYSE:RL - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 5,700 shares of the textile maker's stock, valued at approximately $1,263,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in RL. MassMutual Private Wealth & Trust FSB boosted its position in shares of Ralph Lauren by 93.7% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 122 shares of the textile maker's stock worth $27,000 after buying an additional 59 shares in the last quarter. Sentry Investment Management LLC lifted its holdings in Ralph Lauren by 178.0% in the 1st quarter. Sentry Investment Management LLC now owns 139 shares of the textile maker's stock valued at $31,000 after purchasing an additional 89 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. purchased a new position in Ralph Lauren in the 1st quarter valued at about $39,000. Parallel Advisors LLC lifted its holdings in shares of Ralph Lauren by 74.4% during the 1st quarter. Parallel Advisors LLC now owns 272 shares of the textile maker's stock worth $60,000 after acquiring an additional 116 shares during the period. Finally, MRP Capital Investments LLC lifted its holdings in shares of Ralph Lauren by 175.0% during the 1st quarter. MRP Capital Investments LLC now owns 275 shares of the textile maker's stock worth $61,000 after acquiring an additional 175 shares during the period. Institutional investors and hedge funds own 67.91% of the company's stock.

Ralph Lauren Price Performance

NYSE:RL traded up $3.33 during mid-day trading on Wednesday, reaching $302.57. 932,658 shares of the stock were exchanged, compared to its average volume of 592,223. The business has a fifty day moving average price of $281.71 and a 200 day moving average price of $255.56. The company has a current ratio of 1.78, a quick ratio of 1.33 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $18.25 billion, a PE ratio of 26.06, a PEG ratio of 2.19 and a beta of 1.53. Ralph Lauren Corporation has a 1-year low of $156.69 and a 1-year high of $306.34.

Ralph Lauren (NYSE:RL - Get Free Report) last released its earnings results on Thursday, May 22nd. The textile maker reported $2.27 earnings per share for the quarter, beating the consensus estimate of $2.00 by $0.27. The company had revenue of $1.70 billion for the quarter, compared to analysts' expectations of $1.64 billion. Ralph Lauren had a return on equity of 31.76% and a net margin of 10.49%. The business's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.71 EPS. Research analysts expect that Ralph Lauren Corporation will post 12.01 earnings per share for the current fiscal year.

Ralph Lauren declared that its Board of Directors has approved a share repurchase plan on Thursday, May 22nd that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the textile maker to purchase up to 8.8% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Ralph Lauren Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Stockholders of record on Friday, June 27th were given a $0.9125 dividend. This is a positive change from Ralph Lauren's previous quarterly dividend of $0.83. This represents a $3.65 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, June 27th. Ralph Lauren's dividend payout ratio (DPR) is currently 31.44%.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Wall Street Zen lowered shares of Ralph Lauren from a "buy" rating to a "hold" rating in a report on Tuesday, May 6th. JPMorgan Chase & Co. increased their price objective on shares of Ralph Lauren from $355.00 to $406.00 and gave the company an "overweight" rating in a research report on Monday, July 28th. The Goldman Sachs Group raised their price target on shares of Ralph Lauren from $262.00 to $324.00 and gave the stock a "buy" rating in a research report on Friday, May 23rd. Bank of America raised their price target on shares of Ralph Lauren from $318.00 to $328.00 and gave the stock a "buy" rating in a research report on Friday, May 23rd. Finally, BMO Capital Markets lifted their price objective on shares of Ralph Lauren from $197.00 to $205.00 and gave the stock an "underperform" rating in a report on Friday, May 23rd. One analyst has rated the stock with a sell rating, three have issued a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $303.00.

About Ralph Lauren

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances.