Tapestry (NYSE:TPR) Sets New 1-Year High After Analyst Upgrade

Key Points

• Tapestry's shares reached a new 52-week high after UBS Group upgraded its price target from $73 to $112, while still maintaining a neutral rating on the stock.
• In addition to the UBS upgrade, several other firms have also raised their price targets for Tapestry, with JPMorgan Chase increasing theirs from $104 to $145.
• Tapestry announced a quarterly dividend of $0.35, translating to an annualized dividend of $1.40 and a yield of 1.3%.

Shares of Tapestry, Inc. (NYSE:TPR - Get Free Report) reached a new 52-week high during trading on Monday after UBS Group raised their price target on the stock from $73.00 to $112.00. UBS Group currently has a neutral rating on the stock. Tapestry traded as high as $110.75 and last traded at $110.69, with a volume of 1615084 shares changing hands. The stock had previously closed at $106.31.

TPR has been the subject of several other research reports. Barclays reiterated an "overweight" rating and issued a $105.00 target price (up previously from $98.00) on shares of Tapestry in a report on Friday, July 11th. Cowen upgraded shares of Tapestry from a "hold" rating to a "buy" rating in a report on Thursday, June 12th. JPMorgan Chase & Co. lifted their target price on shares of Tapestry from $104.00 to $145.00 and gave the company an "overweight" rating in a report on Monday, July 28th. The Goldman Sachs Group lifted their target price on shares of Tapestry from $84.00 to $93.00 and gave the company a "buy" rating in a report on Friday, May 9th. Finally, Citigroup lifted their target price on shares of Tapestry from $81.00 to $94.00 and gave the company a "buy" rating in a report on Friday, May 9th. Four analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $99.72.

Insiders Place Their Bets

In related news, VP Manesh Dadlani sold 1,399 shares of the business's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $81.88, for a total transaction of $114,550.12. Following the completion of the transaction, the vice president owned 40,922 shares in the company, valued at approximately $3,350,693.36. The trade was a 3.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Todd Kahn sold 40,000 shares of the business's stock in a transaction on Monday, May 12th. The stock was sold at an average price of $81.40, for a total transaction of $3,256,000.00. Following the transaction, the chief executive officer owned 116,062 shares of the company's stock, valued at approximately $9,447,446.80. The trade was a 25.63% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On Tapestry

A number of institutional investors and hedge funds have recently modified their holdings of TPR. Harbour Investments Inc. lifted its position in Tapestry by 120.1% in the first quarter. Harbour Investments Inc. now owns 361 shares of the luxury accessories retailer's stock valued at $25,000 after acquiring an additional 197 shares during the last quarter. Flaharty Asset Management LLC purchased a new stake in Tapestry in the first quarter valued at $25,000. First PREMIER Bank purchased a new stake in shares of Tapestry in the second quarter valued at about $25,000. Greenline Partners LLC purchased a new stake in shares of Tapestry in the fourth quarter valued at about $29,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in shares of Tapestry in the first quarter valued at about $29,000. Institutional investors and hedge funds own 90.77% of the company's stock.

Tapestry Stock Up 4.1%

The business's fifty day moving average price is $91.01 and its 200 day moving average price is $80.35. The company has a quick ratio of 1.22, a current ratio of 1.76 and a debt-to-equity ratio of 1.59. The firm has a market capitalization of $22.99 billion, a PE ratio of 29.16, a PEG ratio of 2.14 and a beta of 1.51.

Tapestry (NYSE:TPR - Get Free Report) last announced its earnings results on Thursday, May 8th. The luxury accessories retailer reported $1.03 EPS for the quarter, beating analysts' consensus estimates of $0.89 by $0.14. Tapestry had a net margin of 12.50% and a return on equity of 51.84%. The business had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.53 billion. During the same period in the prior year, the company earned $0.81 earnings per share. The business's revenue was up 6.9% compared to the same quarter last year. On average, equities research analysts forecast that Tapestry, Inc. will post 4.91 earnings per share for the current fiscal year.

Tapestry Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 23rd. Stockholders of record on Friday, June 6th were issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, June 6th. Tapestry's dividend payout ratio is presently 36.84%.

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.

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