Tapestry (NYSE:TPR) Downgraded by Wall Street Zen to Buy

Key Points

• Tapestry was downgraded from a "strong-buy" rating to a "buy" rating by Wall Street Zen, amidst a mixed response from other analysts who continue to set higher price targets.
• Despite the downgrade, Tapestry's stock has shown an upward trend, with a recent trading value of $114.25 and a significant increase in quarterly earnings over the previous year.
• Insider trading activity revealed that key executives, including VP Manesh Dadlani and Director Alan Ka Ming Lau, sold substantial shares of the company's stock recently, reducing their ownership percentages.

Tapestry (NYSE:TPR - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Monday.

A number of other equities research analysts have also issued reports on the company. Barclays increased their price target on Tapestry from $111.00 to $127.00 and gave the stock an "overweight" rating in a research note on Thursday, September 11th. Wells Fargo & Company increased their price target on Tapestry from $100.00 to $120.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Sanford C. Bernstein reiterated an "outperform" rating and set a $112.00 target price on shares of Tapestry in a research report on Friday, August 15th. TD Cowen upgraded Tapestry from a "hold" rating to a "buy" rating and set a $100.00 target price for the company in a research report on Thursday, June 12th. Finally, Morgan Stanley reaffirmed an "overweight" rating on shares of Tapestry in a report on Thursday, September 11th. Seventeen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $106.47.

Tapestry Stock Up 0.8%

TPR stock opened at $114.25 on Monday. Tapestry has a 1-year low of $42.06 and a 1-year high of $115.35. The business has a fifty day moving average price of $105.48 and a 200-day moving average price of $86.57. The company has a debt-to-equity ratio of 2.77, a current ratio of 1.87 and a quick ratio of 1.31. The stock has a market capitalization of $23.78 billion, a P/E ratio of 181.35, a P/E/G ratio of 2.75 and a beta of 1.52.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The luxury accessories retailer reported $1.04 EPS for the quarter, beating the consensus estimate of $1.02 by $0.02. Tapestry had a net margin of 2.61% and a return on equity of 68.02%. The firm had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.67 billion. During the same quarter in the prior year, the firm earned $0.92 EPS. The business's revenue for the quarter was up 8.3% compared to the same quarter last year. Tapestry has set its FY 2026 guidance at 5.300-5.450 EPS. Equities analysts forecast that Tapestry will post 4.91 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Tapestry news, VP Manesh Dadlani sold 7,882 shares of the company's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $99.05, for a total transaction of $780,712.10. Following the completion of the sale, the vice president owned 21,098 shares in the company, valued at $2,089,756.90. This represents a 27.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Alan Ka Ming Lau sold 11,320 shares of the company's stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $106.19, for a total value of $1,202,070.80. Following the sale, the director owned 8,153 shares of the company's stock, valued at $865,767.07. This trade represents a 58.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.18% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Tapestry

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Osaic Holdings Inc. lifted its position in Tapestry by 50.8% during the second quarter. Osaic Holdings Inc. now owns 28,943 shares of the luxury accessories retailer's stock valued at $2,517,000 after acquiring an additional 9,755 shares during the last quarter. Centaurus Financial Inc. purchased a new stake in shares of Tapestry during the 2nd quarter valued at $135,000. MASTERINVEST Kapitalanlage GmbH purchased a new stake in shares of Tapestry during the 2nd quarter valued at $822,000. Clarion Wealth Managment Partners LLC purchased a new stake in Tapestry in the second quarter valued at about $1,317,000. Finally, B. Riley Wealth Advisors Inc. purchased a new stake in Tapestry in the second quarter valued at about $265,000. Hedge funds and other institutional investors own 90.77% of the company's stock.

About Tapestry

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags; and women's accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.

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