Tapestry, Inc. $TPR Stock: Smith Group Asset Management LLC Cuts Stake

Key Points

• Smith Group Asset Management cut its Tapestry stake by 36.9% in the third quarter, selling 132,528 shares and retaining 226,371 shares worth approximately $26.0 million. Institutional investors collectively own 90.77% of Tapestry.
• Analysts remain generally bullish, with a consensus “Moderate Buy” rating and an average price target of $170.62, despite several recent target-price reductions.
• Tapestry reported quarterly earnings and revenue above expectations, raised its quarterly dividend to $0.4625 per share, and shares opened at $111.18—near the lower end of their 52-week range.

Smith Group Asset Management LLC lowered its position in Tapestry, Inc. (NYSE:TPR - Free Report) by 36.9% in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 226,371 shares of the luxury accessories retailer's stock after selling 132,528 shares during the quarter. Tapestry comprises 1.7% of Smith Group Asset Management LLC's investment portfolio, making the stock its 29th largest holding. Smith Group Asset Management LLC owned approximately 0.11% of Tapestry worth $26,042,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Tapestry during the second quarter valued at about $2,610,995,000. Bank of America Corp DE bought a new position in Tapestry during the second quarter worth about $771,309,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Tapestry by 53.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,169,602 shares of the luxury accessories retailer's stock worth $317,586,000 after purchasing an additional 758,915 shares during the period. Amundi increased its stake in shares of Tapestry by 96.0% in the first quarter. Amundi now owns 1,769,905 shares of the luxury accessories retailer's stock worth $249,751,000 after purchasing an additional 866,969 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Tapestry in the second quarter worth about $175,291,000. 90.77% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Morgan Stanley lowered their price target on shares of Tapestry from $164.00 to $159.00 and set an "overweight" rating on the stock in a research report on Friday, August 14th. Wells Fargo & Company dropped their price target on shares of Tapestry from $165.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, August 13th. JPMorgan Chase & Co. raised their price objective on shares of Tapestry from $205.00 to $211.00 and gave the stock an "overweight" rating in a report on Tuesday, August 4th. Weiss Ratings upgraded shares of Tapestry from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 16th. Finally, UBS Group reduced their price objective on shares of Tapestry from $232.00 to $200.00 and set a "buy" rating for the company in a research note on Tuesday, October 20th. Two 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 stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $170.62.

Tapestry Stock Down 0.2%

TPR stock opened at $111.18 on Thursday. The company has a quick ratio of 1.25, a current ratio of 1.75 and a debt-to-equity ratio of 3.44. The firm has a market capitalization of $22.17 billion, a PE ratio of 15.25, a PEG ratio of 1.40 and a beta of 1.42. Tapestry, Inc. has a twelve month low of $93.00 and a twelve month high of $164.80. The stock has a 50-day simple moving average of $118.19 and a two-hundred day simple moving average of $137.26.

Tapestry (NYSE:TPR - Get Free Report) last announced its quarterly 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. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. The firm had revenue of $1.88 billion for the quarter, compared to analysts' expectations of $1.87 billion. During the same period in the prior year, the business posted $1.04 earnings per share. The company's revenue was up 8.9% on a year-over-year basis. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. On average, equities analysts predict that Tapestry, Inc. will post 7.94 EPS for the current fiscal year.

Tapestry Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 21st. Stockholders of record on Friday, September 4th were given a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.7%. This is an increase from Tapestry's previous quarterly dividend of $0.40. The ex-dividend date was Friday, September 4th. Tapestry's dividend payout ratio (DPR) is 25.38%.

Insider Activity at Tapestry

In related news, CEO Joanne Crevoiserat sold 27,761 shares of the business'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 transaction, the chief executive officer owned 666,149 shares of the company's stock, valued at approximately $88,244,758.03. The trade was a 4.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Denise Kulikowsky sold 5,810 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $115.38, for a total transaction of $670,357.80. Following the sale, the insider directly owned 21,136 shares in the company, valued at $2,438,671.68. This trade represents a 21.56% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.28% of the stock is currently owned by insiders.

Tapestry Profile

Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company's portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women's footwear.

Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.

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