Tapestry (NYSE:TPR) Shares Break Below Fifty Day Moving Average on Analyst Downgrade

Key Points

• Tapestry shares fell below their 50-day moving average, reaching $116.08 after Wells Fargo cut its price target from $160 to $150, although it maintained an overweight rating.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average target price of $170, despite several firms recently lowering their targets.
• Insiders sold shares, including CEO Joanne Crevoiserat’s $3.68 million sale, while Tapestry increased its quarterly dividend to $0.4625 per share, or $1.85 annually.

Tapestry, Inc. (NYSE:TPR - Get Free Report) crossed below its 50 day moving average during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $160.00 to $150.00. The stock has a 50 day moving average of $117.65 and traded as low as $116.08. Wells Fargo & Company currently has an overweight rating on the stock. Tapestry shares last traded at $116.09, with a volume of 2,753,167 shares.

Several other research analysts also recently commented on TPR. Wall Street Zen downgraded shares of Tapestry from a "buy" rating to a "hold" rating in a report on Sunday, August 16th. Weiss Ratings raised Tapestry from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, October 16th. Robert W. Baird lowered their price target on Tapestry from $165.00 to $150.00 and set an "outperform" rating on the stock in a research report on Tuesday. Raymond James Financial dropped their price objective on Tapestry from $165.00 to $140.00 and set an "outperform" rating on the stock in a research note on Friday, October 16th. Finally, Morgan Stanley cut their price objective on Tapestry from $164.00 to $159.00 and set an "overweight" rating for the company in a research report on Friday, August 14th. 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. According to data from MarketBeat.com, Tapestry presently has an average rating of "Moderate Buy" and a consensus target price of $170.00.

Insiders Place Their Bets

In other Tapestry news, insider Denise Kulikowsky sold 5,810 shares of the stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total value of $670,357.80. Following the completion of the sale, the insider directly owned 21,136 shares of the company's stock, valued at $2,438,671.68. This represents a 21.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Joanne C. Crevoiserat sold 27,761 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the completion of the sale, the chief executive officer owned 666,149 shares in the company, valued at $88,244,758.03. This represents a 4.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.28% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Cetera Trust Company N.A bought a new position in Tapestry during the second quarter valued at about $26,000. Keating Financial Advisory Services Inc. acquired a new position in Tapestry in the 2nd quarter valued at approximately $31,000. Virtus Advisers LLC bought a new stake in shares of Tapestry in the 2nd quarter worth approximately $32,000. GK Wealth Management LLC bought a new stake in shares of Tapestry in the 3rd quarter worth approximately $28,000. Finally, Signature Equity Partners LLC grew its holdings in shares of Tapestry by 1,516.7% during the 3rd quarter. Signature Equity Partners LLC now owns 291 shares of the luxury accessories retailer's stock worth $34,000 after purchasing an additional 273 shares in the last quarter. Institutional investors and hedge funds own 90.77% of the company's stock.

Tapestry Price Performance

The company has a market cap of $23.15 billion, a price-to-earnings ratio of 15.92, a price-to-earnings-growth ratio of 1.49 and a beta of 1.42. The company has a fifty day moving average price of $117.65 and a two-hundred day moving average price of $137.09. The company has a current ratio of 1.75, a quick ratio of 1.25 and a debt-to-equity ratio of 3.44.

Tapestry (NYSE:TPR - Get Free Report) last issued its earnings results on Thursday, August 13th. The luxury accessories retailer reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.28 by $0.04. The business had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.87 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. Tapestry's revenue was up 8.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.04 earnings per share. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. As a group, equities research analysts anticipate that Tapestry, Inc. will post 7.95 EPS for the current fiscal year.

Tapestry Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 21st. Stockholders of record on Friday, September 4th were issued a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, September 4th. This is a positive change from Tapestry's previous quarterly dividend of $0.40. Tapestry's payout ratio is 25.38%.

About Tapestry

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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