Ritholtz Wealth Management Grows Stake in Tapestry, Inc. $TPR

Key Points

• Ritholtz Wealth Management significantly increased its stake in Tapestry, Inc. by 187.9%, owning 45,009 shares valued at approximately $3.95 million as of the end of the last quarter.
• Insider activity has been notable, with VP Manesh Dadlani selling 7,882 shares and Director Alan Ka Ming Lau disposing of 11,320 shares, indicating a substantial decrease in their personal holdings.
• Tapestry recently announced an increase in its quarterly dividend from $0.35 to $0.40 per share, reflecting a 1.4% dividend yield, despite a high payout ratio of 253.97%.

Ritholtz Wealth Management grew its position in Tapestry, Inc. (NYSE:TPR - Free Report) by 187.9% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 45,009 shares of the luxury accessories retailer's stock after purchasing an additional 29,376 shares during the quarter. Ritholtz Wealth Management's holdings in Tapestry were worth $3,952,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. First PREMIER Bank purchased a new position in Tapestry during the 2nd quarter worth $25,000. Flaharty Asset Management LLC acquired a new position in shares of Tapestry during the first quarter valued at about $25,000. Harbour Investments Inc. increased its holdings in shares of Tapestry by 120.1% during the first quarter. Harbour Investments Inc. now owns 361 shares of the luxury accessories retailer's stock valued at $25,000 after acquiring an additional 197 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of Tapestry during the first quarter valued at about $29,000. Finally, Ameritas Advisory Services LLC acquired a new position in shares of Tapestry during the second quarter valued at about $37,000. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, VP Manesh Dadlani sold 7,882 shares of the stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $99.05, for a total transaction of $780,712.10. Following the sale, the vice president directly owned 21,098 shares of the company's stock, valued at $2,089,756.90. This represents a 27.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Alan Ka Ming Lau sold 11,320 shares of the stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $106.19, for a total value of $1,202,070.80. Following the transaction, the director owned 8,153 shares in the company, valued at $865,767.07. This represents a 58.13% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.32% of the company's stock.

Wall Street Analysts Forecast Growth

TPR has been the topic of several research analyst reports. Cowen reissued a "buy" rating on shares of Tapestry in a research report on Thursday, August 7th. Telsey Advisory Group reissued an "outperform" rating and issued a $125.00 target price on shares of Tapestry in a research report on Thursday, September 11th. Wells Fargo & Company upped their target price on Tapestry from $100.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, August 14th. Wall Street Zen downgraded Tapestry from a "strong-buy" rating to a "buy" rating in a research note on Monday, September 22nd. Finally, Evercore ISI dropped their price target on Tapestry from $130.00 to $125.00 and set an "outperform" rating on the stock in a research note on Friday, August 15th. Eighteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $110.00.

Tapestry Stock Up 0.4%

Shares of TPR opened at $116.69 on Thursday. The company has a quick ratio of 1.31, a current ratio of 1.87 and a debt-to-equity ratio of 2.77. Tapestry, Inc. has a 52 week low of $43.07 and a 52 week high of $118.56. The stock's 50-day moving average price is $107.90 and its 200-day moving average price is $91.50. The company has a market capitalization of $24.16 billion, a price-to-earnings ratio of 185.22, a PEG ratio of 2.80 and a beta of 1.57.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The luxury accessories retailer reported $1.04 EPS for the quarter, topping the consensus estimate of $1.02 by $0.02. Tapestry had a return on equity of 68.02% and a net margin of 2.61%.The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.67 billion. During the same quarter in the prior year, the firm posted $0.92 EPS. The business's quarterly revenue was up 8.3% compared to the same quarter last year. Tapestry has set its FY 2026 guidance at 5.300-5.450 EPS. On average, sell-side analysts predict that Tapestry, Inc. will post 4.91 EPS for the current year.

Tapestry Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 22nd. Stockholders of record on Friday, September 5th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, September 5th. This is an increase from Tapestry's previous quarterly dividend of $0.35. Tapestry's dividend payout ratio is currently 253.97%.

About Tapestry

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.

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