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

Key Points

• Tapestry has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, reflecting a shift in analyst sentiment regarding the stock.
• Recent earnings results showed Tapestry reporting a $1.04 EPS, beating estimates, with revenue increasing by 8.3% compared to the previous year.
• The average target price for Tapestry's stock stands at $105.47, with the stock currently rated as "Moderate Buy" by analysts.

Wall Street Zen downgraded shares of Tapestry (NYSE:TPR - Free Report) from a strong-buy rating to a buy rating in a research note released on Saturday morning.

TPR has been the subject of a number of other research reports. Cowen restated a "buy" rating on shares of Tapestry in a report on Thursday, August 7th. TD Cowen upgraded Tapestry from a "hold" rating to a "buy" rating and set a $100.00 price objective for the company in a report on Thursday, June 12th. Morgan Stanley boosted their price objective on Tapestry from $90.00 to $115.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Evercore ISI reduced their price objective on Tapestry from $130.00 to $125.00 and set an "outperform" rating for the company in a report on Friday, August 15th. Finally, UBS Group reduced their price objective on Tapestry from $112.00 to $105.00 and set a "neutral" rating for the company in a report on Friday, August 15th. Seventeen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $105.47.

Tapestry Stock Performance

NYSE TPR traded up $0.29 during trading on Friday, reaching $105.11. 2,857,180 shares of the company's stock were exchanged, compared to its average volume of 4,895,044. The business has a 50 day moving average price of $102.48 and a 200-day moving average price of $84.95. The stock has a market capitalization of $21.88 billion, a P/E ratio of 166.84, a PEG ratio of 2.63 and a beta of 1.52. The company has a debt-to-equity ratio of 2.77, a current ratio of 1.87 and a quick ratio of 1.31. Tapestry has a fifty-two week low of $40.32 and a fifty-two week high of $114.05.

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

Tapestry Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 22nd. Investors of record on Friday, September 5th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.5%. This is an increase from Tapestry's previous quarterly dividend of $0.35. The ex-dividend date is Friday, September 5th. Tapestry's dividend payout ratio is presently 253.97%.

Insider Activity

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 directly 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 document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TPR. Schroder Investment Management Group increased its holdings in shares of Tapestry by 1,661.6% during the second quarter. Schroder Investment Management Group now owns 4,002,818 shares of the luxury accessories retailer's stock worth $351,487,000 after buying an additional 3,775,593 shares in the last quarter. Norges Bank acquired a new position in shares of Tapestry during the second quarter worth $227,248,000. Southpoint Capital Advisors LP acquired a new position in shares of Tapestry during the fourth quarter worth $130,660,000. Point72 Asset Management L.P. acquired a new position in shares of Tapestry during the fourth quarter worth $101,433,000. Finally, Point72 Hong Kong Ltd acquired a new position in shares of Tapestry during the fourth quarter worth $65,751,000. 90.77% of the stock is currently owned by institutional investors and hedge funds.

Tapestry Company Profile

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.