Tapestry (NYSE:TPR) Reaches New 12-Month High - Still a Buy?

Key Points

• Tapestry Inc.'s share price has reached a new 52-week high of $117.00, although it last traded at $113.45, indicating strong market interest.
• Following earnings results that beat estimates, analysts have provided mixed ratings, with some downgrading their recommendations while others maintain a bullish outlook, resulting in a consensus rating of "Moderate Buy."
• The company has increased its quarterly dividend to $0.40 per share, marking a rise from the previous dividend of $0.35, despite a high payout ratio of 253.97%.

Tapestry, Inc. (NYSE:TPR - Get Free Report)'s share price reached a new 52-week high on Thursday . The company traded as high as $117.00 and last traded at $113.45, with a volume of 3279069 shares trading hands. The stock had previously closed at $116.14.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the stock. Bank of America downgraded shares of Tapestry from a "buy" rating to a "neutral" rating and increased their target price for the company from $95.00 to $115.00 in a research report on Tuesday, July 29th. TD Cowen raised Tapestry from a "hold" rating to a "buy" rating and set a $100.00 price objective for the company in a report on Thursday, June 12th. Evercore ISI reduced their price objective on Tapestry from $130.00 to $125.00 and set an "outperform" rating for the company in a report on Friday, August 15th. Wall Street Zen downgraded Tapestry from a "strong-buy" rating to a "buy" rating in a research note on Monday. Finally, Raymond James Financial reiterated an "outperform" rating and set a $115.00 target price (up previously from $85.00) on shares of Tapestry in a research report on Tuesday, July 22nd. Seventeen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Tapestry presently has a consensus rating of "Moderate Buy" and an average target price of $106.47.

Tapestry Trading Down 2.3%

The stock has a market cap of $23.61 billion, a P/E ratio of 180.07, a P/E/G ratio of 2.80 and a beta of 1.52. The company has a debt-to-equity ratio of 2.77, a quick ratio of 1.31 and a current ratio of 1.87. The stock has a 50-day moving average price of $106.27 and a 200-day moving average price of $87.23.

Tapestry (NYSE:TPR - Get Free Report) last announced its earnings results on Thursday, August 14th. The luxury accessories retailer reported $1.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.02. Tapestry had a net margin of 2.61% and a return on equity of 68.02%. The business had revenue of $1.72 billion during 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 revenue for the quarter was up 8.3% on a year-over-year basis. Tapestry has set its FY 2026 guidance at 5.300-5.450 EPS. On average, equities research analysts expect that Tapestry, Inc. will post 4.91 EPS for the current 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 issued a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, September 5th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.4%. This is an increase from Tapestry's previous quarterly dividend of $0.35. Tapestry's payout ratio is presently 253.97%.

Insider Activity

In related news, Director Alan Ka Ming Lau sold 11,320 shares of the business'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 value of $1,202,070.80. Following the completion of the sale, the director owned 8,153 shares in the company, valued at $865,767.07. The trade was a 58.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Manesh Dadlani sold 7,882 shares of the business's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $99.05, for a total value of $780,712.10. Following the completion of the sale, the vice president owned 21,098 shares of the company's stock, valued at $2,089,756.90. The trade was a 27.20% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.18% of the company's stock.

Institutional Investors Weigh In On Tapestry

A number of hedge funds have recently made changes to their positions in the business. Schroder Investment Management Group lifted its stake in shares of Tapestry by 1,661.6% in the 2nd quarter. Schroder Investment Management Group now owns 4,002,818 shares of the luxury accessories retailer's stock valued at $351,487,000 after acquiring an additional 3,775,593 shares during the last quarter. Norges Bank bought a new stake in Tapestry in the second quarter valued at approximately $227,248,000. AQR Capital Management LLC lifted its position in Tapestry by 36.0% in the second quarter. AQR Capital Management LLC now owns 3,546,969 shares of the luxury accessories retailer's stock valued at $311,388,000 after purchasing an additional 939,227 shares during the last quarter. WT Asset Management Ltd lifted its position in Tapestry by 140.6% in the first quarter. WT Asset Management Ltd now owns 1,574,634 shares of the luxury accessories retailer's stock valued at $110,870,000 after purchasing an additional 920,087 shares during the last quarter. Finally, Marshall Wace LLP raised its holdings in Tapestry by 2,547.4% during the 2nd quarter. Marshall Wace LLP now owns 955,667 shares of the luxury accessories retailer's stock valued at $83,917,000 after buying an additional 919,569 shares during the last quarter. 90.77% of the stock is currently owned by institutional investors.

Tapestry Company Profile

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.

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