Capri (NYSE:CPRI) Trading 4.6% Higher - Here's Why

Key Points

• Capri shares rose 4.6% to $15.89 in mid-day trading, though volume was 75% below the average session volume.
• Analysts have broadly reduced their price targets, with a consensus rating of “Hold” and an average target price of $21.93.
• Capri exceeded quarterly expectations, reporting $0.67 in earnings per share versus the $0.40 estimate and $769 million in revenue, although revenue declined 3.5% year over year.

Shares of Capri Holdings Limited (NYSE:CPRI - Get Free Report) were up 4.6% during mid-day trading on Wednesday . The stock traded as high as $15.63 and last traded at $15.89. 911,114 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 3,578,750 shares. The stock had previously closed at $15.19.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Wells Fargo & Company decreased their price target on Capri from $20.00 to $16.00 and set an "equal weight" rating for the company in a report on Wednesday, July 15th. Bank of America cut their target price on Capri from $23.00 to $20.00 and set a "neutral" rating on the stock in a research report on Thursday, May 28th. JPMorgan Chase & Co. decreased their target price on Capri from $29.00 to $22.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Robert W. Baird decreased their target price on Capri from $26.00 to $24.00 and set an "outperform" rating for the company in a research note on Monday, July 27th. Finally, BTIG Research lowered their target price on Capri from $30.00 to $25.00 and set a "buy" rating for the company in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $21.93.

Capri Stock Performance

The company has a debt-to-equity ratio of 2.27, a quick ratio of 0.54 and a current ratio of 1.19. The company has a 50 day moving average price of $14.74 and a 200 day moving average price of $17.41. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 12.07, a P/E/G ratio of 0.31 and a beta of 1.38.

Capri (NYSE:CPRI - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.67 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.27. The business had revenue of $769.00 million for the quarter, compared to the consensus estimate of $757.61 million. Capri had a return on equity of 297.36% and a net margin of 4.44%.The firm's revenue for the quarter was down 3.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.50 EPS. Capri has set its Q2 2027 guidance at 0.200-0.200 EPS and its FY 2027 guidance at 2.150-2.150 EPS. Equities research analysts predict that Capri Holdings Limited will post 2.11 earnings per share for the current fiscal year.

Institutional Trading of Capri

Hedge funds have recently bought and sold shares of the business. Norges Bank bought a new stake in shares of Capri in the 4th quarter worth approximately $50,228,000. Cooper Creek Partners Management LLC purchased a new stake in Capri in the first quarter worth $23,784,000. Segall Bryant & Hamill LLC increased its position in Capri by 92.6% in the first quarter. Segall Bryant & Hamill LLC now owns 2,734,735 shares of the company's stock worth $48,186,000 after buying an additional 1,314,611 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Capri by 34.7% in the first quarter. Dimensional Fund Advisors LP now owns 2,165,618 shares of the company's stock valued at $38,154,000 after buying an additional 557,955 shares during the period. Finally, Renaissance Technologies LLC bought a new stake in shares of Capri in the first quarter valued at $7,695,000. Institutional investors and hedge funds own 84.34% of the company's stock.

About Capri

Capri Holdings Limited NYSE: CPRI is a global fashion company that designs, manufactures, markets and distributes luxury apparel, accessories and footwear. Its portfolio includes the Michael Kors and Jimmy Choo brands, which offer products such as handbags, shoes, ready-to-wear clothing, watches, jewelry, eyewear and fragrances.

Michael Kors is known for its accessible luxury fashion and lifestyle products, while Jimmy Choo focuses on luxury footwear, handbags and accessories. The brands serve customers through company-operated stores, e-commerce platforms, department stores, specialty retailers, travel retail locations and selected licensing arrangements.

Capri Holdings was established as Michael Kors Holdings Limited in 2011 and adopted the Capri name in 2018 after expanding its portfolio through acquisitions of Jimmy Choo and Versace.

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