Nicholas Investment Partners LP Acquires New Shares in Tapestry, Inc. $TPR

Key Points

• Nicholas Investment Partners acquired 9,919 Tapestry shares worth approximately $1.45 million in the second quarter. Institutional investors collectively own 90.77% of the company.
• Analysts maintain a generally positive outlook, with Tapestry carrying a consensus “Moderate Buy” rating and an average price target of $175.12.
• Tapestry exceeded quarterly earnings and revenue expectations, while reporting 8.9% year-over-year revenue growth. The company also increased its quarterly dividend to $0.4625, implying a 1.4% annual yield.

Nicholas Investment Partners LP bought a new stake in Tapestry, Inc. (NYSE:TPR - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 9,919 shares of the luxury accessories retailer's stock, valued at approximately $1,452,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Tapestry in the second quarter worth $2,610,995,000. Schroder Investment Management Group grew its holdings in shares of Tapestry by 92.8% in the 4th quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer's stock valued at $1,194,678,000 after buying an additional 4,500,850 shares during the period. Norges Bank acquired a new position in shares of Tapestry in the 4th quarter valued at $345,349,000. Wellington Management Group LLP increased its position in shares of Tapestry by 632.3% in the 4th quarter. Wellington Management Group LLP now owns 2,366,502 shares of the luxury accessories retailer's stock valued at $302,368,000 after buying an additional 2,043,353 shares in the last quarter. Finally, State Street Corp increased its position in shares of Tapestry by 19.3% in the 3rd quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer's stock valued at $1,044,995,000 after buying an additional 1,494,193 shares in the last quarter. Institutional investors own 90.77% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on the company. BTIG Research reduced their target price on Tapestry from $180.00 to $175.00 and set a "buy" rating on the stock in a report on Friday, August 14th. Morgan Stanley lowered their price target on Tapestry from $164.00 to $159.00 and set an "overweight" rating for the company in a report on Friday, August 14th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $185.00 price target (up from $180.00) on shares of Tapestry in a research report on Friday, August 14th. Zacks Research cut Tapestry from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 22nd. Finally, JPMorgan Chase & Co. boosted their price objective on Tapestry from $205.00 to $211.00 and gave the company an "overweight" rating in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $175.12.

Tapestry Stock Up 1.5%

NYSE:TPR opened at $132.16 on Tuesday. The firm has a market capitalization of $26.35 billion, a price-to-earnings ratio of 18.13, a price-to-earnings-growth ratio of 1.65 and a beta of 1.43. The company has a quick ratio of 1.25, a current ratio of 1.75 and a debt-to-equity ratio of 3.44. Tapestry, Inc. has a twelve month low of $93.00 and a twelve month high of $164.80. The stock's 50 day moving average price is $144.75 and its two-hundred day moving average price is $144.91.

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

Tapestry Increases Dividend

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

Insider Buying and Selling at Tapestry

In other news, CEO Joanne C. Crevoiserat sold 27,761 shares of the business's stock in a transaction dated 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 transaction, the chief executive officer directly owned 666,149 shares in the company, valued at $88,244,758.03. The trade was a 4.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.32% of the stock is owned by corporate insiders.

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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