Tapestry (NYSE:TPR) Shares Gap Down - Here's Why

Key Points

• Tapestry, Inc. (NYSE:TPR) shares gapped down significantly from $113.53 to $95.95 at market opening on Thursday, with the latest trade at $96.38 and a trading volume of over 3.7 million shares.
• The company reported earnings of $1.04 per share, beating analysts' expectations, alongside a revenue increase of 8.3% year-over-year to $1.72 billion for the quarter.
• Tapestry has announced an increase in its quarterly dividend from $0.35 to $0.40 per share, reflecting a 1.7% dividend yield, and a payout ratio of 36.84%.

Tapestry, Inc. (NYSE:TPR - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $113.53, but opened at $95.95. Tapestry shares last traded at $96.38, with a volume of 3,738,115 shares.

Wall Street Analysts Forecast Growth

TPR has been the topic of a number of research reports. The Goldman Sachs Group boosted their target price on shares of Tapestry from $84.00 to $93.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Wall Street Zen cut shares of Tapestry from a "strong-buy" rating to a "buy" rating in a research note on Friday, July 18th. UBS Group reiterated a "neutral" rating and set a $112.00 price target (up previously from $73.00) on shares of Tapestry in a report on Monday, August 4th. Telsey Advisory Group reiterated an "outperform" rating and set a $125.00 price target (up previously from $92.00) on shares of Tapestry in a report on Monday. Finally, Cowen reiterated a "buy" rating on shares of Tapestry in a report on Thursday, August 7th. Four research analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company. According to MarketBeat.com, Tapestry has an average rating of "Moderate Buy" and a consensus target price of $101.56.

Tapestry Trading Down 14.9%

The company has a debt-to-equity ratio of 1.59, a current ratio of 1.76 and a quick ratio of 1.22. The stock has a market capitalization of $20.07 billion, a PE ratio of 25.47, a PEG ratio of 2.23 and a beta of 1.51. The stock's 50 day simple moving average is $96.10 and its two-hundred day simple moving average is $82.33.

Tapestry (NYSE:TPR - Get Free Report) last issued its earnings results on Thursday, August 14th. The luxury accessories retailer reported $1.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.02 by $0.02. Tapestry had a net margin of 12.50% and a return on equity of 51.84%. The business had revenue of $1.72 billion for the quarter, compared to analysts' expectations of $1.67 billion. During the same quarter in the previous year, the firm posted $0.92 EPS. The business's revenue for the quarter was up 8.3% compared to the same quarter last year. On average, sell-side 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 will be paid on Monday, September 22nd. Stockholders of record on Friday, September 5th will be issued a dividend of $0.40 per share. This is an increase from Tapestry's previous quarterly dividend of $0.35. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.7%. Tapestry's payout ratio is currently 36.84%.

Institutional Trading of Tapestry

A number of hedge funds have recently made changes to their positions in the stock. Renaissance Technologies LLC raised its position in Tapestry by 130.1% in the 4th quarter. Renaissance Technologies LLC now owns 111,811 shares of the luxury accessories retailer's stock worth $7,305,000 after purchasing an additional 63,211 shares during the period. Raymond James Financial Inc. purchased a new position in Tapestry in the 4th quarter worth $38,180,000. Rockefeller Capital Management L.P. raised its position in Tapestry by 30.1% in the 4th quarter. Rockefeller Capital Management L.P. now owns 13,643 shares of the luxury accessories retailer's stock worth $882,000 after purchasing an additional 3,155 shares during the period. Mariner LLC raised its position in Tapestry by 10.5% in the 4th quarter. Mariner LLC now owns 39,486 shares of the luxury accessories retailer's stock worth $2,580,000 after purchasing an additional 3,736 shares during the period. Finally, XTX Topco Ltd purchased a new position in Tapestry in the 4th quarter worth $574,000. 90.77% of the stock is owned by institutional investors.

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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