Tapestry (NYSE:TPR) Sets New 52-Week High on Analyst Upgrade

Key Points

• Tapestry's stock reached a new 52-week high of $110.40 following an upgrade by JPMorgan Chase, raising its price target from $104.00 to $145.00.
• Analysts show strong support for Tapestry, with 18 buy ratings compared to 3 hold ratings and an average target price of $93.11.
• The company's quarterly earnings exceeded expectations, reporting $1.03 EPS against an estimated $0.89 and a revenue of $1.58 billion.

Shares of Tapestry, Inc. (NYSE:TPR - Get Free Report) reached a new 52-week high on Monday after JPMorgan Chase & Co. raised their price target on the stock from $104.00 to $145.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Tapestry traded as high as $110.40 and last traded at $109.92, with a volume of 1192886 shares. The stock had previously closed at $108.34.

Other research analysts have also recently issued reports about the stock. Cowen raised shares of Tapestry from a "hold" rating to a "buy" rating in a report on Thursday, June 12th. Wells Fargo & Company reiterated an "overweight" rating and set a $100.00 price target (up previously from $90.00) on shares of Tapestry in a report on Wednesday, May 14th. Argus boosted their target price on shares of Tapestry from $78.00 to $92.00 and gave the company a "buy" rating in a report on Tuesday, June 17th. The Goldman Sachs Group boosted their target price on shares of Tapestry from $84.00 to $93.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Finally, Telsey Advisory Group reaffirmed an "outperform" rating and issued a $92.00 price objective on shares of Tapestry in a research report on Friday, May 9th. Four analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the stock. According to data from MarketBeat.com, Tapestry has an average rating of "Moderate Buy" and a consensus price target of $96.17.

Insider Activity at Tapestry

In related news, CEO Todd Kahn sold 40,000 shares of Tapestry stock in a transaction on Monday, May 12th. The shares were sold at an average price of $81.40, for a total value of $3,256,000.00. Following the sale, the chief executive officer owned 116,062 shares of the company's stock, valued at approximately $9,447,446.80. This trade represents a 25.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Manesh Dadlani sold 1,399 shares of the stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $81.88, for a total transaction of $114,550.12. Following the completion of the sale, the vice president owned 40,922 shares of the company's stock, valued at $3,350,693.36. This trade represents a 3.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On Tapestry

Hedge funds have recently added to or reduced their stakes in the stock. Harbour Investments Inc. boosted its holdings in shares of Tapestry by 120.1% in the first quarter. Harbour Investments Inc. now owns 361 shares of the luxury accessories retailer's stock valued at $25,000 after acquiring an additional 197 shares during the period. Flaharty Asset Management LLC acquired a new stake in shares of Tapestry during the first quarter worth $25,000. First PREMIER Bank acquired a new stake in shares of Tapestry during the second quarter worth $25,000. Greenline Partners LLC acquired a new stake in Tapestry in the fourth quarter valued at $29,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Tapestry in the first quarter valued at $29,000. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

Tapestry Trading Up 0.7%

The firm has a market cap of $22.46 billion, a PE ratio of 28.45, a PEG ratio of 2.21 and a beta of 1.47. The business has a 50-day moving average price of $89.83 and a two-hundred day moving average price of $79.64. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.76 and a quick ratio of 1.22.

Tapestry (NYSE:TPR - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The luxury accessories retailer reported $1.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.89 by $0.14. The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.53 billion. Tapestry had a return on equity of 51.84% and a net margin of 12.50%. The firm's quarterly revenue was up 6.9% on a year-over-year basis. During the same period last year, the company earned $0.81 EPS. Analysts forecast that Tapestry, Inc. will post 4.91 EPS for the current year.

Tapestry Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 23rd. Shareholders of record on Friday, June 6th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, June 6th. This represents a $1.40 dividend on an annualized basis and a yield of 1.29%. Tapestry's dividend payout ratio (DPR) is presently 36.84%.

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.