Weiss Ratings Reaffirms "Sell (D-)" Rating for Capri (NYSE:CPRI)

Key Points

• Weiss Ratings maintained a "Sell (D-)" rating for Capri Holdings (NYSE: CPRI), reflecting a negative outlook despite some price upgrades from other brokerages.
• Capri recently reported earnings of $0.50 per share, surpassing estimates, but also showed a negative net margin of 26.73% and a year-over-year revenue decline of 6%.
• Institutional investors currently own 84.34% of Capri's stock, with several hedge funds significantly increasing their positions recently.

Capri (NYSE:CPRI - Get Free Report)'s stock had its "sell (d-)" rating restated by equities researchers at Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

A number of other brokerages have also recently commented on CPRI. UBS Group lifted their price objective on shares of Capri from $18.00 to $23.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. upgraded shares of Capri from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $21.00 to $30.00 in a report on Wednesday, August 13th. Wall Street Zen upgraded shares of Capri from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Zacks Research upgraded shares of Capri from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 26th. Finally, Telsey Advisory Group restated a "market perform" rating and issued a $22.00 target price (up previously from $20.00) on shares of Capri in a report on Wednesday, August 6th. Five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $24.08.

Capri Price Performance

CPRI traded up $0.36 during trading on Wednesday, hitting $21.15. 1,767,505 shares of the company traded hands, compared to its average volume of 3,472,829. The company has a market cap of $2.52 billion, a PE ratio of -2.25, a P/E/G ratio of 0.45 and a beta of 1.82. The stock's 50-day simple moving average is $20.59 and its two-hundred day simple moving average is $18.42. Capri has a 1 year low of $11.86 and a 1 year high of $43.34. The company has a current ratio of 1.17, a quick ratio of 0.61 and a debt-to-equity ratio of 3.97.

Capri (NYSE:CPRI - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.37. Capri had a negative net margin of 26.73% and a negative return on equity of 53.50%. The company had revenue of $797.00 million during the quarter, compared to analysts' expectations of $773.18 million. During the same period last year, the company posted $0.04 earnings per share. Capri's quarterly revenue was down 6.0% on a year-over-year basis. As a group, sell-side analysts anticipate that Capri will post 0.98 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Capri

Large investors have recently made changes to their positions in the company. Farther Finance Advisors LLC raised its position in Capri by 758.1% during the first quarter. Farther Finance Advisors LLC now owns 1,433 shares of the company's stock worth $28,000 after acquiring an additional 1,266 shares during the period. Banque Cantonale Vaudoise purchased a new position in Capri in the first quarter worth approximately $29,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Capri during the first quarter worth approximately $30,000. UMB Bank n.a. raised its holdings in Capri by 134.9% during the first quarter. UMB Bank n.a. now owns 1,776 shares of the company's stock worth $35,000 after purchasing an additional 1,020 shares in the last quarter. Finally, Quantbot Technologies LP acquired a new stake in Capri during the second quarter worth approximately $39,000. 84.34% of the stock is currently owned by institutional investors and hedge funds.

Capri Company Profile

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites.

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