ThornTree Capital Partners LP Acquires New Position in Ralph Lauren Corporation $RL

Key Points

• ThornTree Capital Partners LP has made a new investment of approximately $12.96 million in Ralph Lauren, acquiring 58,706 shares, making up about 2.9% of its portfolio.
• Ralph Lauren's latest quarterly earnings reported $3.77 earnings per share, surpassing analysts' expectations of $3.50, with revenues of $1.72 billion, a 13.7% year-over-year increase.
• The company's board has authorized a share buyback plan of up to $1.50 billion, indicating confidence in the stock's value.

ThornTree Capital Partners LP bought a new position in Ralph Lauren Corporation (NYSE:RL - Free Report) during the first quarter, according to its most recent filing with the SEC. The firm bought 58,706 shares of the textile maker's stock, valued at approximately $12,959,000. Ralph Lauren makes up 2.9% of ThornTree Capital Partners LP's investment portfolio, making the stock its 16th largest holding. ThornTree Capital Partners LP owned approximately 0.10% of Ralph Lauren at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Invesco Ltd. raised its holdings in Ralph Lauren by 22.3% during the first quarter. Invesco Ltd. now owns 1,512,903 shares of the textile maker's stock worth $333,958,000 after buying an additional 275,391 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Ralph Lauren by 55.7% during the first quarter. AQR Capital Management LLC now owns 1,157,867 shares of the textile maker's stock worth $245,468,000 after acquiring an additional 414,275 shares in the last quarter. Jennison Associates LLC raised its holdings in shares of Ralph Lauren by 16.5% in the 1st quarter. Jennison Associates LLC now owns 565,687 shares of the textile maker's stock worth $124,870,000 after acquiring an additional 79,934 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Ralph Lauren by 1.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 311,274 shares of the textile maker's stock valued at $71,898,000 after acquiring an additional 5,742 shares in the last quarter. Finally, Truist Financial Corp boosted its stake in Ralph Lauren by 7.8% during the 1st quarter. Truist Financial Corp now owns 300,837 shares of the textile maker's stock valued at $66,407,000 after purchasing an additional 21,681 shares during the last quarter. Institutional investors own 67.91% of the company's stock.

Ralph Lauren Stock Performance

Shares of NYSE:RL traded up $2.93 during midday trading on Wednesday, reaching $312.72. The company had a trading volume of 630,032 shares, compared to its average volume of 846,948. The stock has a market cap of $18.94 billion, a P/E ratio of 24.98, a P/E/G ratio of 1.56 and a beta of 1.60. The company's 50 day moving average price is $293.97 and its 200 day moving average price is $261.25. The company has a current ratio of 1.84, a quick ratio of 1.30 and a debt-to-equity ratio of 0.58. Ralph Lauren Corporation has a 52-week low of $170.26 and a 52-week high of $321.77.

Ralph Lauren (NYSE:RL - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The textile maker reported $3.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.50 by $0.27. The business had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.65 billion. Ralph Lauren had a net margin of 10.91% and a return on equity of 33.72%. The firm's quarterly revenue was up 13.7% compared to the same quarter last year. During the same quarter last year, the company posted $2.70 earnings per share. As a group, sell-side analysts anticipate that Ralph Lauren Corporation will post 12.01 EPS for the current fiscal year.

Ralph Lauren declared that its Board of Directors has authorized a stock repurchase plan on Thursday, May 22nd that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the textile maker to purchase up to 8.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

RL has been the topic of a number of recent research reports. Telsey Advisory Group raised their target price on Ralph Lauren from $315.00 to $335.00 and gave the company an "outperform" rating in a report on Monday, August 4th. Bank of America raised their price objective on Ralph Lauren from $318.00 to $328.00 and gave the company a "buy" rating in a research note on Friday, May 23rd. Needham & Company LLC lifted their price objective on shares of Ralph Lauren from $310.00 to $335.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. BMO Capital Markets increased their target price on shares of Ralph Lauren from $197.00 to $205.00 and gave the company an "underperform" rating in a report on Friday, May 23rd. Finally, Cowen reissued a "buy" rating on shares of Ralph Lauren in a research report on Thursday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $307.88.

Ralph Lauren Profile

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances.