Wall Street Zen Upgrades Tapestry (NYSE:TPR) to "Strong-Buy"

Key Points

• Tapestry has been upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating, indicating increased confidence in the company's stock performance.
• Analysts have given Tapestry an average rating of "Moderate Buy" with a consensus target price of $106.47, reflecting varied opinions on the stock's future performance.
• The luxury accessories retailer reported an EPS of $1.04 for the last quarter, surpassing estimates and demonstrating a year-over-year revenue increase of 8.3%.

Wall Street Zen upgraded shares of Tapestry (NYSE:TPR - Free Report) from a buy rating to a strong-buy rating in a research report report published on Sunday morning.

Several other equities research analysts have also recently issued reports on the stock. Morgan Stanley raised their price objective on shares of Tapestry from $90.00 to $115.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Evercore ISI decreased their target price on shares of Tapestry from $130.00 to $125.00 and set an "outperform" rating on the stock in a research report on Friday, August 15th. Bank of America cut shares of Tapestry from a "buy" rating to a "neutral" rating and upped their target price for the company from $95.00 to $115.00 in a research report on Tuesday, July 29th. Raymond James Financial reaffirmed an "outperform" rating and issued a $115.00 target price (up previously from $85.00) on shares of Tapestry in a research report on Tuesday, July 22nd. Finally, Telsey Advisory Group reaffirmed an "outperform" rating and issued a $125.00 target price on shares of Tapestry in a research report on Thursday. 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, the company has a consensus rating of "Moderate Buy" and a consensus target price of $106.47.

Tapestry Price Performance

TPR traded up $3.50 on Friday, hitting $109.97. 3,415,413 shares of the company's stock were exchanged, compared to its average volume of 3,914,809. Tapestry has a fifty-two week low of $42.06 and a fifty-two week high of $114.05. The company has a current ratio of 1.87, a quick ratio of 1.31 and a debt-to-equity ratio of 2.77. The firm has a 50-day moving average price of $104.21 and a 200-day moving average price of $85.71. The stock has a market cap of $22.89 billion, a price-to-earnings ratio of 174.56, a P/E/G ratio of 2.57 and a beta of 1.52.

Tapestry (NYSE:TPR - Get Free Report) last posted 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. Tapestry had a net margin of 2.61% and a return on equity of 68.02%. The firm had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.67 billion. During the same period in the previous year, the business posted $0.92 earnings per share. Tapestry's quarterly revenue was up 8.3% on a year-over-year basis. Tapestry has set its FY 2026 guidance at 5.300-5.450 EPS. As a group, equities analysts anticipate that Tapestry will post 4.91 earnings per share for the current year.

Tapestry Increases Dividend

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

Insider Transactions at Tapestry

In other Tapestry news, VP Manesh Dadlani sold 7,882 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $99.05, for a total value of $780,712.10. Following the sale, the vice president owned 21,098 shares of the company's stock, valued at $2,089,756.90. This trade represents a 27.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Alan Ka Ming Lau sold 11,320 shares of the company's stock in a transaction dated 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 transaction, the director directly owned 8,153 shares of the company's stock, valued at approximately $865,767.07. This 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 company insiders.

Institutional Trading of Tapestry

Hedge funds and other institutional investors have recently made changes to their positions in the company. First PREMIER Bank acquired a new stake in shares of Tapestry during the second quarter worth about $25,000. Vestor Capital LLC acquired a new stake in Tapestry during the 2nd quarter worth $27,000. Flaharty Asset Management LLC acquired a new stake in shares of Tapestry during the first quarter worth about $25,000. Harbour Investments Inc. boosted its stake in shares of Tapestry by 120.1% during the first quarter. Harbour Investments Inc. now owns 361 shares of the luxury accessories retailer's stock worth $25,000 after buying an additional 197 shares during the period. Finally, CVA Family Office LLC boosted its stake in shares of Tapestry by 224.8% during the second quarter. CVA Family Office LLC now owns 380 shares of the luxury accessories retailer's stock worth $33,000 after buying an additional 263 shares during the period. Institutional investors and hedge funds 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.