Tapestry (NYSE:TPR) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded Tapestry from “strong-buy” to “hold”, even as other analysts remain generally positive on the stock. The broader consensus from MarketBeat still shows a Moderate Buy rating with a target price around $170.06.
• Tapestry reported strong quarterly results, posting $1.66 EPS versus the $1.30 estimate and $1.92 billion in revenue versus expectations of $1.79 billion. Revenue rose 21.2% year over year, and the company maintained FY2026 EPS guidance of 6.95.
• Shares were down 3.4% to $138.78 after the report, while CEO share sales were also disclosed. The stock remains widely held by institutions, with 90.77% owned by hedge funds and other investors.

Tapestry (NYSE:TPR - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

TPR has been the subject of a number of other research reports. Citigroup boosted their price target on Tapestry from $165.00 to $170.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Robert W. Baird upped their target price on Tapestry from $160.00 to $165.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. Weiss Ratings downgraded Tapestry from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. Evercore set a $175.00 price target on Tapestry in a research note on Friday, May 8th. Finally, Raymond James Financial restated an "outperform" rating and issued a $165.00 price objective on shares of Tapestry in a report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $170.06.

Tapestry Trading Down 3.4%

TPR stock opened at $138.78 on Wednesday. The company has a market capitalization of $28.04 billion, a PE ratio of 44.48, a P/E/G ratio of 1.32 and a beta of 1.43. Tapestry has a 12 month low of $92.62 and a 12 month high of $161.97. The firm's 50-day moving average is $142.18 and its 200 day moving average is $142.49. The company has a debt-to-equity ratio of 3.48, a current ratio of 1.84 and a quick ratio of 1.27.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The luxury accessories retailer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.36. The company had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.79 billion. Tapestry had a net margin of 8.44% and a return on equity of 229.70%. The firm's quarterly revenue was up 21.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.03 EPS. Tapestry has set its FY 2026 guidance at 6.950-6.950 EPS. On average, research analysts anticipate that Tapestry will post 6.97 EPS for the current year.

Insider Buying and Selling at Tapestry

In related news, CEO Todd Kahn sold 19,557 shares of the company'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 in the company, valued at $17,258,585.16. This represents a 13.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Joanne C. Crevoiserat sold 27,776 shares of the firm's stock in a transaction dated 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 sale, the chief executive officer directly owned 652,434 shares in the company, valued at approximately $86,701,954.26. The trade was a 4.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.32% of the stock is currently owned by company insiders.

Institutional Trading of Tapestry

Several hedge funds have recently modified their holdings of the company. Eurizon Capital SGR S.p.A. acquired a new stake in Tapestry during the fourth quarter worth about $8,109,000. Norges Bank acquired a new position in Tapestry in the fourth quarter valued at approximately $345,349,000. Keystone Investors PTE Ltd. lifted its holdings in Tapestry by 17.4% in the fourth quarter. Keystone Investors PTE Ltd. now owns 62,622 shares of the luxury accessories retailer's stock valued at $8,001,000 after acquiring an additional 9,303 shares during the period. Aberdeen Group plc boosted its position in Tapestry by 34.7% in the 4th quarter. Aberdeen Group plc now owns 47,573 shares of the luxury accessories retailer's stock worth $6,078,000 after purchasing an additional 12,251 shares in the last quarter. Finally, SEB Asset Management AB purchased a new stake in Tapestry in the 1st quarter worth approximately $59,525,000. 90.77% of the stock is owned by hedge funds and other institutional investors.

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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