Shellback Capital LP Trims Position in Tapestry, Inc. $TPR

Key Points

• Shellback Capital LP reduced its stake in Tapestry, Inc. by 21.8%, owning 783,558 shares, which constitutes approximately 5.3% of its portfolio and makes it the largest position in the firm's holdings.
• Tapestry's earnings report indicated an EPS of $1.04, exceeding analysts' expectations, and the company set a fiscal year 2026 EPS guidance of 5.300-5.450.
• The company announced an increase in its quarterly dividend to $0.40 per share, representing a 1.5% yield, marking a boost from the previous dividend of $0.35.

Shellback Capital LP trimmed its holdings in shares of Tapestry, Inc. (NYSE:TPR - Free Report) by 21.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 783,558 shares of the luxury accessories retailer's stock after selling 219,066 shares during the quarter. Tapestry comprises 5.3% of Shellback Capital LP's portfolio, making the stock its biggest holding. Shellback Capital LP owned 0.38% of Tapestry worth $55,170,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Aptus Capital Advisors LLC bought a new stake in Tapestry during the fourth quarter valued at about $202,000. Captrust Financial Advisors boosted its holdings in Tapestry by 17.8% during the fourth quarter. Captrust Financial Advisors now owns 26,515 shares of the luxury accessories retailer's stock valued at $1,732,000 after acquiring an additional 4,010 shares during the period. Deutsche Bank AG boosted its holdings in Tapestry by 8.1% during the fourth quarter. Deutsche Bank AG now owns 1,290,500 shares of the luxury accessories retailer's stock valued at $84,308,000 after acquiring an additional 96,489 shares during the period. Ensign Peak Advisors Inc boosted its holdings in Tapestry by 3.6% during the fourth quarter. Ensign Peak Advisors Inc now owns 88,840 shares of the luxury accessories retailer's stock valued at $5,804,000 after acquiring an additional 3,064 shares during the period. Finally, Focus Partners Wealth boosted its holdings in Tapestry by 33.3% during the fourth quarter. Focus Partners Wealth now owns 19,816 shares of the luxury accessories retailer's stock valued at $1,295,000 after acquiring an additional 4,952 shares during the period. 90.77% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Tapestry

In related news, VP Manesh Dadlani sold 7,882 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $99.05, for a total value of $780,712.10. Following the completion of the sale, the vice president owned 21,098 shares of the company's stock, valued at $2,089,756.90. This trade represents a 27.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 1.18% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on TPR shares. UBS Group decreased their price target on shares of Tapestry from $112.00 to $105.00 and set a "neutral" rating for the company in a report on Friday, August 15th. Sanford C. Bernstein restated an "outperform" rating and set a $112.00 price target on shares of Tapestry in a report on Friday, August 15th. Barclays restated an "overweight" rating and set a $105.00 price target (up from $98.00) on shares of Tapestry in a report on Friday, July 11th. Bank of America cut shares of Tapestry from a "buy" rating to a "neutral" rating and upped their price target for the company from $95.00 to $115.00 in a report on Tuesday, July 29th. Finally, Wells Fargo & Company increased their target price on shares of Tapestry from $100.00 to $120.00 and gave the company an "overweight" rating in a research note on Thursday, August 14th. Seventeen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Tapestry currently has an average rating of "Moderate Buy" and a consensus price target of $105.47.

Tapestry Price Performance

Shares of NYSE TPR traded up $0.29 during mid-day trading on Tuesday, hitting $105.11. 2,857,180 shares of the stock were exchanged, compared to its average volume of 4,701,410. The company has a market cap of $21.88 billion, a P/E ratio of 166.84, a PEG ratio of 2.64 and a beta of 1.52. The stock's fifty day simple moving average is $102.85 and its two-hundred day simple moving average is $85.09. The company has a debt-to-equity ratio of 2.77, a quick ratio of 1.31 and a current ratio of 1.87. Tapestry, Inc. has a twelve month low of $40.32 and a twelve month high of $114.05.

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

Tapestry Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 22nd. Investors of record on Friday, September 5th will be issued a $0.40 dividend. This is an increase from Tapestry's previous quarterly dividend of $0.35. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, September 5th. Tapestry's dividend payout ratio (DPR) is 253.97%.

Tapestry Profile

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.