Tapestry (NYSE:TPR) Rating Increased to Strong-Buy at Daiwa Securities Group

Key Points

• Daiwa Securities Group upgraded Tapestry from “hold” to “strong buy,” while the broader analyst consensus remains “moderate buy” with an average price target of $175.12.
• Tapestry reported quarterly earnings of $1.32 per share, beating estimates of $1.28, while revenue rose 8.9% year over year to $1.88 billion.
• Institutional investors own 90.77% of the company, with major purchases from BlackRock and Bank of America; CEO Todd Kahn separately sold 19,557 shares valued at approximately $2.74 million.

Tapestry (NYSE:TPR - Get Free Report) was upgraded by analysts at Daiwa Securities Group from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other analysts have also weighed in on TPR. Barclays lifted their target price on shares of Tapestry from $182.00 to $185.00 and gave the company an "overweight" rating in a research report on Friday. Citigroup raised their price target on shares of Tapestry from $165.00 to $170.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Wall Street Zen downgraded Tapestry from a "buy" rating to a "hold" rating in a report on Sunday. Zacks Research downgraded Tapestry from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $185.00 price target (up from $180.00) on shares of Tapestry in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $175.12.

Tapestry Stock Performance

Shares of NYSE TPR opened at $132.23 on Monday. The firm has a market capitalization of $26.37 billion, a price-to-earnings ratio of 18.14, a PEG ratio of 1.15 and a beta of 1.43. Tapestry has a one year low of $93.00 and a one year high of $164.80. The business has a fifty day simple moving average of $145.97 and a 200 day simple moving average of $144.81. The company has a current ratio of 1.75, a quick ratio of 1.25 and a debt-to-equity ratio of 3.44.

Tapestry (NYSE:TPR - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.04. The firm had revenue of $1.88 billion for the quarter, compared to the consensus estimate of $1.87 billion. Tapestry had a net margin of 19.09% and a return on equity of 254.95%. The business's revenue was up 8.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.04 earnings per share. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Sell-side analysts expect that Tapestry will post 7.96 EPS for the current year.

Insider Activity

In other news, CEO Todd Kahn sold 19,557 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $140.02, for a total value of $2,738,371.14. Following the transaction, the chief executive officer directly owned 123,258 shares of the company's stock, valued at $17,258,585.16. The trade was a 13.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.32% of the company's stock.

Hedge Funds Weigh In On Tapestry

Several institutional investors have recently bought and sold shares of TPR. BlackRock Inc. bought a new position in shares of Tapestry in the second quarter worth about $2,610,995,000. Bank of America Corp DE bought a new stake in shares of Tapestry during the second quarter valued at approximately $771,309,000. Schroder Investment Management Group increased its holdings in shares of Tapestry by 92.8% in the fourth 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 purchasing an additional 4,500,850 shares in the last quarter. Norges Bank acquired a new stake in shares of Tapestry in the fourth quarter valued at approximately $345,349,000. Finally, Wellington Management Group LLP raised its position 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 purchasing an additional 2,043,353 shares during the last quarter. Institutional investors own 90.77% of the company's stock.

About Tapestry

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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