Tapestry (NYSE:TPR) Hits New 52-Week High - Should You Buy?

Key Points

• Tapestry, Inc. reached a new 52-week high of $117.77, with analysts largely bullish, leading to upgraded price targets from firms like Wells Fargo and Barclays.
• The company reported a net margin of 2.61% and a year-over-year revenue increase of 8.3%, with earnings per share surpassing forecasts.
• Tapestry recently increased its quarterly dividend from $0.35 to $0.40 per share, indicating strong financial health despite a high dividend payout ratio.

Tapestry, Inc. (NYSE:TPR - Get Free Report)'s share price reached a new 52-week high on Friday . The company traded as high as $117.77 and last traded at $116.00, with a volume of 129845 shares trading hands. The stock had previously closed at $115.56.

Wall Street Analysts Forecast Growth

Several research firms have commented on TPR. Wells Fargo & Company upped their price objective on shares of Tapestry from $100.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. TD Cowen raised shares of Tapestry from a "hold" rating to a "buy" rating and set a $100.00 price target on the stock in a research note on Thursday, June 12th. Barclays raised their price target on Tapestry from $111.00 to $127.00 and gave the stock an "overweight" rating in a research report on Thursday, September 11th. UBS Group reduced their price target on Tapestry from $112.00 to $105.00 and set a "neutral" rating on the stock in a report on Friday, August 15th. Finally, Telsey Advisory Group reiterated an "outperform" rating and set a $125.00 price target on shares of Tapestry in a research report on Thursday, September 11th. Seventeen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $106.47.

Tapestry Price Performance

The company has a quick ratio of 1.31, a current ratio of 1.87 and a debt-to-equity ratio of 2.77. The stock has a market cap of $23.82 billion, a P/E ratio of 182.69, a P/E/G ratio of 2.74 and a beta of 1.57. The firm has a 50 day moving average price of $106.96 and a 200 day moving average price of $88.92.

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

Tapestry Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 22nd. Stockholders of record on Friday, September 5th were given a dividend of $0.40 per share. The ex-dividend date was Friday, September 5th. This is an increase from Tapestry's previous quarterly dividend of $0.35. This represents a $1.60 annualized dividend and a dividend yield of 1.4%. Tapestry's dividend payout ratio (DPR) is 253.97%.

Insider Activity

In other Tapestry news, Director Alan Ka Ming Lau sold 11,320 shares of the firm's stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $106.19, for a total transaction of $1,202,070.80. Following the completion of the transaction, the director owned 8,153 shares in the company, valued at $865,767.07. This trade represents a 58.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Manesh Dadlani sold 7,882 shares of the business'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 position. 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 institutional investors and hedge funds have recently bought and sold shares of TPR. 1858 Wealth Management LLC lifted its holdings in Tapestry by 2.5% during the second quarter. 1858 Wealth Management LLC now owns 3,835 shares of the luxury accessories retailer's stock worth $337,000 after buying an additional 95 shares during the period. Convergence Financial LLC lifted its stake in shares of Tapestry by 3.0% during the 2nd quarter. Convergence Financial LLC now owns 3,386 shares of the luxury accessories retailer's stock worth $297,000 after purchasing an additional 98 shares during the last quarter. Earned Wealth Advisors LLC grew its stake in Tapestry by 1.6% in the second quarter. Earned Wealth Advisors LLC now owns 7,304 shares of the luxury accessories retailer's stock valued at $641,000 after purchasing an additional 116 shares during the last quarter. 44 Wealth Management LLC raised its holdings in Tapestry by 0.8% in the second quarter. 44 Wealth Management LLC now owns 19,018 shares of the luxury accessories retailer's stock worth $1,670,000 after purchasing an additional 142 shares in the last quarter. Finally, Private Trust Co. NA lifted its position in shares of Tapestry by 27.2% during the first quarter. Private Trust Co. NA now owns 715 shares of the luxury accessories retailer's stock valued at $50,000 after buying an additional 153 shares during the last quarter. 90.77% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.