Tapestry (NYSE:TPR) Shares Break Below Fifty Day Moving Average on Analyst Downgrade

Tapestry, Inc. (NYSE:TPR)’s stock price crossed below its fifty day moving average during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $160.00 to $150.00. The stock has a fifty day moving average of $117.65 and traded as low as $116.08. Wells Fargo & Company currently has an overweight rating on the stock. Tapestry shares last traded at $116.09, with a volume of 2,753,167 shares.

Other equities research analysts also recently issued reports about the company. JPMorgan Chase & Co. lifted their price objective on Tapestry from $205.00 to $211.00 and gave the company an “overweight” rating in a report on Tuesday, August 4th. Wall Street Zen cut Tapestry from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. BTIG Research cut their target price on Tapestry from $180.00 to $175.00 and set a “buy” rating for the company in a research report on Friday, August 14th. Sanford C. Bernstein restated a “market perform” rating and set a $185.00 target price (up from $180.00) on shares of Tapestry in a research report on Friday, August 14th. Finally, Weiss Ratings raised Tapestry from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, October 16th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $170.00.

Insider Transactions at Tapestry

In related news, CEO Joanne Crevoiserat sold 27,761 shares of Tapestry stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $132.47, for a total transaction of $3,677,499.67. Following the completion of the transaction, the chief executive officer directly owned 666,149 shares of the company’s stock, valued at $88,244,758.03. This trade represents a 4.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Denise Kulikowsky sold 5,810 shares of the business’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $115.38, for a total transaction of $670,357.80. Following the completion of the transaction, the insider owned 21,136 shares in the company, valued at approximately $2,438,671.68. This trade represents a 21.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.28% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Tapestry in the 2nd quarter valued at $2,610,995,000. Bank of America Corp DE bought a new position in Tapestry during the 2nd quarter worth about $771,309,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Tapestry by 53.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,169,602 shares of the luxury accessories retailer’s stock worth $317,586,000 after purchasing an additional 758,915 shares in the last quarter. Amundi increased its holdings in Tapestry by 96.0% during the 1st quarter. Amundi now owns 1,769,905 shares of the luxury accessories retailer’s stock worth $249,751,000 after purchasing an additional 866,969 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Tapestry in the 2nd quarter valued at about $175,291,000. Institutional investors own 90.77% of the company’s stock.

Tapestry Price Performance

The stock has a market cap of $23.15 billion, a price-to-earnings ratio of 15.92, a P/E/G ratio of 1.49 and a beta of 1.42. The company has a 50 day simple moving average of $117.65 and a 200-day simple moving average of $137.09. The company has a current ratio of 1.75, a quick ratio of 1.25 and a debt-to-equity ratio of 3.44.

Tapestry (NYSE:TPR) last posted its quarterly earnings data on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.04. The company had revenue of $1.88 billion during the quarter, compared to analysts’ expectations of $1.87 billion. Tapestry had a return on equity of 254.95% and a net margin of 19.09%. Tapestry’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.04 earnings per share. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. Research analysts expect that Tapestry, Inc. will post 7.95 EPS for the current year.

Tapestry Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 21st. Shareholders of record on Friday, September 4th were paid a $0.4625 dividend. This represents a $1.85 annualized dividend and a yield of 1.6%. The ex-dividend date was Friday, September 4th. This is a positive change from Tapestry’s previous quarterly dividend of $0.40. Tapestry’s dividend payout ratio (DPR) is presently 25.38%.

Tapestry Company Profile

Tapestry, Inc is a global house of modern luxury accessories and lifestyle brands. The company’s portfolio includes Coach, known for handbags, leather goods, footwear, apparel and accessories; Kate Spade New York, which offers handbags, accessories, apparel, footwear, home products and related lifestyle merchandise; and Stuart Weitzman, a designer and manufacturer of women’s footwear.

Tapestry sells its products through company-operated stores, outlet locations, e-commerce websites, wholesale partners and select distributors.