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

Key Points

• Wall Street Zen downgraded Tapestry from “strong buy” to “buy,” though the broader analyst consensus remains “Moderate Buy” with a $175.44 average price target.
• Tapestry’s latest quarterly results exceeded expectations, with earnings per share of $1.66 versus the $1.30 consensus and revenue of $1.92 billion, up 21.2% year over year.
• Institutional investors own 90.77% of Tapestry, while two CEOs recently sold shares under pre-arranged trading plans; the stock opened at $162.46, near its 52-week high.

Tapestry (NYSE:TPR - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

A number of other research firms have also weighed in on TPR. Zacks Research lowered shares of Tapestry from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. Morgan Stanley reiterated an "overweight" rating and issued a $164.00 price target on shares of Tapestry in a research report on Monday, July 6th. Citigroup boosted their price objective on Tapestry from $165.00 to $170.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Sanford C. Bernstein reissued an "outperform" rating and set a $180.00 price objective on shares of Tapestry in a report on Tuesday, June 2nd. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $165.00 target price on shares of Tapestry in a report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $175.44.

Tapestry Stock Up 0.3%

Shares of NYSE TPR opened at $162.46 on Friday. The company has a debt-to-equity ratio of 3.48, a current ratio of 1.84 and a quick ratio of 1.27. The stock has a market capitalization of $32.82 billion, a PE ratio of 52.07, a P/E/G ratio of 1.47 and a beta of 1.43. Tapestry has a one year low of $92.62 and a one year high of $163.94. The business's fifty day moving average price is $145.71 and its 200-day moving average price is $144.04.

Tapestry (NYSE:TPR - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The luxury accessories retailer reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.36. The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.79 billion. Tapestry had a return on equity of 229.70% and a net margin of 8.44%.The firm's revenue for the quarter was up 21.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.03 EPS. On average, equities research analysts anticipate that Tapestry will post 6.98 EPS for the current year.

Insider Activity at Tapestry

In related news, CEO Joanne C. Crevoiserat sold 27,776 shares of Tapestry stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $132.89, for a total value of $3,691,152.64. Following the transaction, the chief executive officer owned 652,434 shares in the company, valued at $86,701,954.26. This trade represents a 4.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Kahn sold 19,557 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $140.02, for a total transaction of $2,738,371.14. Following the completion of the sale, the chief executive officer directly owned 123,258 shares of the company's stock, valued at $17,258,585.16. This represents a 13.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.32% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in Tapestry during the 2nd quarter valued at $2,610,995,000. Schroder Investment Management Group boosted its position in Tapestry by 92.8% during the 4th quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer's stock valued at $1,194,678,000 after buying an additional 4,500,850 shares during the period. Norges Bank bought a new stake in Tapestry in the 4th quarter worth $345,349,000. Wellington Management Group LLP grew its holdings in Tapestry by 632.3% in the 4th quarter. Wellington Management Group LLP now owns 2,366,502 shares of the luxury accessories retailer's stock worth $302,368,000 after acquiring an additional 2,043,353 shares during the last quarter. Finally, State Street Corp increased its position in shares of Tapestry by 19.3% in the third quarter. State Street Corp now owns 9,229,777 shares of the luxury accessories retailer's stock valued at $1,044,995,000 after acquiring an additional 1,494,193 shares during the period. Hedge funds and other institutional investors own 90.77% of the company's stock.

Tapestry News Roundup

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Higher analyst price target: Telsey Advisory Group raised its Tapestry price target from $160 to $175 and maintained an “outperform” rating, implying additional upside from current levels. Benzinga report
• Positive Sentiment: Positive earnings expectations: Zacks said Tapestry has factors that could support an earnings beat in next week’s quarterly release, while another analysis highlights the potential for continued earnings growth. Strong results could reinforce the stock’s recent momentum. Zacks earnings expectations
• Positive Sentiment: Long-term growth appeal: Zacks identifies TPR as a potential long-term growth stock, supported by its style-score framework and expectations for market-beating performance. Zacks long-term growth analysis
• Positive Sentiment: AI initiatives may improve execution: Reports describe Tapestry’s efforts to build internal support for AI experimentation. Applying AI across areas such as customer engagement, merchandising and operations could create longer-term efficiency and brand advantages. Wall Street Journal AI culture article
• Neutral Sentiment: Retail backdrop remains supportive: Telsey’s Dana Telsey favors Tapestry alongside Ralph Lauren and off-price retailers, citing resilient consumers and product “newness.” The view is supportive but reflects broader retail optimism rather than a new company-specific result. Barron's retail analysis
• Neutral Sentiment: Near-term catalyst and risk: Tapestry is expected to report earnings next Thursday. Investors will watch sales, margins and guidance to determine whether the optimistic forecasts are justified. Earnings announcement article

Tapestry Company Profile

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry's operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.

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