Capri (NYSE:CPRI) Shares Gap Up - Should You Buy?

Key Points

• Capri shares surged, opening at $17.75 versus a prior close of $16.06 and later trading near $18.74.
• Analyst sentiment remains mixed: Capri has an average “Hold” rating and a $21.80 average price target, although Raymond James recently upgraded the stock to “Strong Buy.”
• Capri exceeded quarterly expectations with $0.42 in EPS versus $0.21 forecast and $809 million in revenue, but sales declined 5.5% year over year; institutional investors own 84.34% of the shares.

Capri Holdings Limited (NYSE:CPRI - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $16.06, but opened at $17.75. Capri shares last traded at $18.7440, with a volume of 1,933,271 shares.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Weiss Ratings restated a "sell (d)" rating on shares of Capri in a report on Tuesday, August 25th. Jefferies Financial Group reaffirmed a "hold" rating on shares of Capri in a research note on Tuesday, September 22nd. Robert W. Baird lowered their target price on Capri from $26.00 to $24.00 and set an "outperform" rating on the stock in a report on Monday, July 27th. The Goldman Sachs Group dropped their target price on shares of Capri from $21.00 to $18.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Finally, Raymond James Financial upgraded Capri from an "outperform" rating to a "strong-buy" rating and set a $20.00 price objective on the stock in a report on Friday, October 16th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $21.80.

Capri Price Performance

The company has a market cap of $2.12 billion, a PE ratio of 14.35, a price-to-earnings-growth ratio of 0.33 and a beta of 1.35. The company has a quick ratio of 0.54, a current ratio of 1.19 and a debt-to-equity ratio of 2.27. The business's 50 day moving average price is $14.53 and its 200-day moving average price is $17.94.

Capri (NYSE:CPRI - Get Free Report) last announced its quarterly earnings results on Saturday, October 31st. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.21. Capri had a return on equity of 297.36% and a net margin of 4.44%. The business had revenue of $809.00 million for the quarter, compared to the consensus estimate of $786.55 million. During the same quarter last year, the business posted ($0.03) EPS. The business's revenue was down 5.5% on a year-over-year basis. As a group, analysts forecast that Capri Holdings Limited will post 2.11 earnings per share for the current year.

Institutional Investors Weigh In On Capri

A number of institutional investors have recently added to or reduced their stakes in CPRI. Measured Wealth Private Client Group LLC lifted its holdings in shares of Capri by 299.7% during the 1st quarter. Measured Wealth Private Client Group LLC now owns 1,523 shares of the company's stock valued at $27,000 after purchasing an additional 1,142 shares in the last quarter. Pinnacle Wealth Planning Services Inc. bought a new position in shares of Capri in the 3rd quarter valued at about $47,000. Sterling Capital Management LLC boosted its stake in shares of Capri by 804.7% during the 3rd quarter. Sterling Capital Management LLC now owns 3,818 shares of the company's stock worth $54,000 after acquiring an additional 3,396 shares during the period. Rockefeller Capital Management L.P. lifted its stake in shares of Capri by 14.8% during the 4th quarter. Rockefeller Capital Management L.P. now owns 4,303 shares of the company's stock worth $105,000 after buying an additional 555 shares during the last quarter. Finally, Sanctuary Advisors LLC bought a new stake in shares of Capri during the first quarter worth approximately $190,000. 84.34% of the stock is owned by institutional investors and hedge funds.

About Capri

Capri Holdings Limited NYSE: CPRI is a global fashion and luxury goods company headquartered in London. The company designs, develops, markets and distributes luxury apparel, footwear, handbags, accessories, watches, jewelry and fragrances through its portfolio of fashion brands.

Capri's principal brands are Michael Kors, Versace and Jimmy Choo. Michael Kors offers a broad range of fashion and lifestyle products, including handbags, footwear, apparel, watches and accessories. Versace is known for luxury clothing, accessories, footwear, home products and fragrances, while Jimmy Choo specializes in luxury footwear, handbags, accessories and fragrances.

The company sells its products through directly operated retail stores, e-commerce platforms, wholesale partners, department stores, specialty retailers and other distribution channels.

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