Tapestry (NYSE:TPR) Lowered to "Neutral" Rating by Bank of America

Key Points

• Bank of America downgraded Tapestry's stock rating from "buy" to "neutral" with a price target of $115, indicating a potential upside of 4.19% from its previous close.
• JPMorgan Chase & Co. raised their target price for Tapestry from $104 to $145, maintaining an "overweight" rating, while several other analysts issued various ratings and price targets.
• In recent insider activity, Tapestry's CEO sold 40,000 shares worth over $3 million, representing a 25.63% decrease in their ownership of the stock.

Tapestry (NYSE:TPR - Get Free Report) was downgraded by equities researchers at Bank of America from a "buy" rating to a "neutral" rating in a report released on Tuesday, MarketBeat Ratings reports. They presently have a $115.00 price target on the luxury accessories retailer's stock, up from their prior price target of $95.00. Bank of America's price objective indicates a potential upside of 6.36% from the stock's previous close.

Several other equities analysts have also commented on the stock. The Goldman Sachs Group increased their price target on shares of Tapestry from $84.00 to $93.00 and gave the company a "buy" rating in a research note on Friday, May 9th. UBS Group increased their target price on shares of Tapestry from $68.00 to $73.00 and gave the company a "neutral" rating in a research report on Friday, May 9th. Barclays reiterated an "overweight" rating and set a $105.00 price target (up from $98.00) on shares of Tapestry in a research note on Friday, July 11th. Morgan Stanley raised Tapestry from an "equal weight" rating to an "overweight" rating and set a $90.00 price objective on the stock in a report on Thursday, May 8th. Finally, Citigroup boosted their target price on Tapestry from $81.00 to $94.00 and gave the company a "buy" rating in a report on Friday, May 9th. Four investment analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $96.17.

Tapestry Trading Up 0.7%

Shares of NYSE:TPR opened at $108.12 on Tuesday. Tapestry has a 52 week low of $35.23 and a 52 week high of $110.44. The company's 50 day moving average is $89.83 and its two-hundred day moving average is $79.64. The company has a market cap of $22.46 billion, a PE ratio of 28.45, a P/E/G ratio of 2.21 and a beta of 1.47. The company has a current ratio of 1.76, a quick ratio of 1.22 and a debt-to-equity ratio of 1.59.

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

Insider Buying and Selling at Tapestry

In other news, VP Manesh Dadlani sold 1,399 shares of Tapestry stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $81.88, for a total value of $114,550.12. Following the sale, the vice president owned 40,922 shares of the company's stock, valued at $3,350,693.36. The trade was a 3.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Todd Kahn sold 40,000 shares of the business's stock in a transaction dated 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 in the company, valued at approximately $9,447,446.80. This trade represents a 25.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.18% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Tapestry

Large investors have recently modified their holdings of the business. Southpoint Capital Advisors LP acquired a new stake in shares of Tapestry in the 4th quarter worth approximately $130,660,000. Price T Rowe Associates Inc. MD increased its stake in shares of Tapestry by 593.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,191,904 shares of the luxury accessories retailer's stock worth $143,198,000 after purchasing an additional 1,875,753 shares in the last quarter. Norges Bank acquired a new position in shares of Tapestry during the 4th quarter worth approximately $114,199,000. Point72 Asset Management L.P. purchased a new stake in Tapestry in the 4th quarter valued at approximately $101,433,000. Finally, Candlestick Capital Management LP acquired a new stake in Tapestry during the 4th quarter valued at $66,902,000. 90.77% of the stock is owned by hedge funds and other 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.