Kendall Capital Management Takes $1.99 Million Position in Tapestry, Inc. $TPR

Key Points

• Kendall Capital Management initiated a $1.99 million position in Tapestry during the second quarter, purchasing 13,590 shares. Institutional investors and hedge funds collectively own 90.77% of the company.
• Tapestry exceeded quarterly expectations, reporting $1.32 in EPS and $1.88 billion in revenue, with revenue up 8.9% year over year. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $175.12.
• The company raised its quarterly dividend to $0.4625 per share, equivalent to an annualized dividend of $1.85 and a 1.4% yield. Meanwhile, two CEOs sold shares under disclosed transactions, while insiders own 1.32% of the stock.

Kendall Capital Management purchased a new position in shares of Tapestry, Inc. (NYSE:TPR - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 13,590 shares of the luxury accessories retailer's stock, valued at approximately $1,989,000.

Other hedge funds have also bought and sold shares of the company. World Investment Advisors lifted its holdings in Tapestry by 3.6% during the 1st quarter. World Investment Advisors now owns 1,979 shares of the luxury accessories retailer's stock worth $279,000 after buying an additional 69 shares during the last quarter. Horizon Bancorp Inc. IN increased its holdings in shares of Tapestry by 4.7% in the 1st quarter. Horizon Bancorp Inc. IN now owns 1,575 shares of the luxury accessories retailer's stock valued at $222,000 after acquiring an additional 71 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of Tapestry by 2.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 3,682 shares of the luxury accessories retailer's stock valued at $477,000 after acquiring an additional 73 shares during the last quarter. Eastern Bank increased its holdings in shares of Tapestry by 24.4% in the 2nd quarter. Eastern Bank now owns 392 shares of the luxury accessories retailer's stock valued at $57,000 after acquiring an additional 77 shares during the last quarter. Finally, NewEdge Wealth LLC raised its position in shares of Tapestry by 2.7% during the 1st quarter. NewEdge Wealth LLC now owns 3,186 shares of the luxury accessories retailer's stock valued at $450,000 after acquiring an additional 85 shares in the last quarter. 90.77% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other Tapestry news, CEO Todd Kahn sold 19,557 shares of the company's stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 123,258 shares in the company, valued at approximately $17,258,585.16. This represents a 13.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Joanne C. Crevoiserat sold 27,761 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the completion of the sale, the chief executive officer owned 666,149 shares in the company, valued at $88,244,758.03. The trade was a 4.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.32% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on TPR shares. Morgan Stanley decreased their price objective on shares of Tapestry from $164.00 to $159.00 and set an "overweight" rating for the company in a report on Friday, August 14th. Barclays increased their target price on shares of Tapestry from $182.00 to $185.00 and gave the stock an "overweight" rating in a report on Friday, August 14th. Citigroup lifted their price target on shares of Tapestry from $165.00 to $170.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. BTIG Research lowered their price objective on shares of Tapestry from $180.00 to $175.00 and set a "buy" rating for the company in a research report on Friday, August 14th. Finally, Weiss Ratings upgraded shares of Tapestry from a "hold (c)" rating to a "buy (b-)" rating in a research note on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $175.12.

Tapestry Price Performance

Shares of TPR opened at $130.66 on Friday. Tapestry, Inc. has a 12 month low of $93.00 and a 12 month high of $164.80. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.75 and a quick ratio of 1.25. The stock has a fifty day moving average price of $145.13 and a 200 day moving average price of $144.76. The company has a market cap of $26.05 billion, a P/E ratio of 17.92, a PEG ratio of 1.65 and a beta of 1.43.

Tapestry (NYSE:TPR - Get Free Report) last posted its earnings results on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.04. Tapestry had a return on equity of 254.95% and a net margin of 19.09%.The company had revenue of $1.88 billion for the quarter, compared to analysts' expectations of $1.87 billion. During the same period last year, the business posted $1.04 earnings per share. The firm's quarterly revenue was up 8.9% compared to the same quarter last year. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. On average, research analysts forecast that Tapestry, Inc. will post 7.94 earnings per share for the current year.

Tapestry Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 21st. Investors of record on Friday, September 4th will be given a $0.4625 dividend. The ex-dividend date is Friday, September 4th. This represents a $1.85 annualized dividend and a yield of 1.4%. This is a boost from Tapestry's previous quarterly dividend of $0.40. Tapestry's payout ratio is 21.95%.

About Tapestry

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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