Tapestry (NYSE:TPR) Shares Gap Up After Strong Earnings

Shares of Tapestry, Inc. (NYSE:TPRGet Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $40.35, but opened at $42.23. Tapestry shares last traded at $42.98, with a volume of 641,068 shares traded.

The luxury accessories retailer reported $1.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.46 by $0.17. Tapestry had a return on equity of 41.29% and a net margin of 14.03%. The business had revenue of $2.08 billion during the quarter, compared to analysts’ expectations of $2.05 billion. During the same period in the prior year, the firm posted $1.36 EPS. Tapestry’s quarterly revenue was up 2.5% compared to the same quarter last year.

Tapestry Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 25th. Shareholders of record on Friday, March 8th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 3.26%. Tapestry’s payout ratio is currently 35.62%.

Analyst Ratings Changes

TPR has been the topic of several analyst reports. The Goldman Sachs Group reduced their target price on Tapestry from $46.00 to $41.00 and set a “buy” rating on the stock in a report on Friday, November 10th. Raymond James increased their price objective on Tapestry from $40.00 to $44.00 and gave the company an “outperform” rating in a report on Tuesday, January 30th. JPMorgan Chase & Co. dropped their price target on Tapestry from $56.00 to $41.00 and set an “overweight” rating on the stock in a research report on Monday, November 13th. BMO Capital Markets decreased their price objective on Tapestry from $43.00 to $39.00 and set a “market perform” rating for the company in a report on Friday, November 10th. Finally, TheStreet upgraded shares of Tapestry from a “c+” rating to a “b-” rating in a research report on Tuesday, December 26th. Five investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $47.59.

Read Our Latest Stock Analysis on TPR

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Norges Bank purchased a new stake in shares of Tapestry during the fourth quarter worth about $71,991,000. Fiera Capital Corp bought a new stake in Tapestry in the fourth quarter worth about $52,121,000. Invesco Ltd. raised its position in Tapestry by 37.8% during the third quarter. Invesco Ltd. now owns 4,394,913 shares of the luxury accessories retailer’s stock valued at $126,354,000 after buying an additional 1,205,207 shares during the period. Qube Research & Technologies Ltd purchased a new stake in shares of Tapestry during the third quarter worth $34,010,000. Finally, Pacer Advisors Inc. increased its holdings in shares of Tapestry by 60.1% during the 4th quarter. Pacer Advisors Inc. now owns 3,108,486 shares of the luxury accessories retailer’s stock valued at $114,423,000 after acquiring an additional 1,167,231 shares during the last quarter. Hedge funds and other institutional investors own 92.12% of the company’s stock.

Tapestry Stock Up 6.5 %

The firm’s fifty day moving average is $36.97 and its 200 day moving average is $33.68. The company has a current ratio of 2.02, a quick ratio of 1.23 and a debt-to-equity ratio of 0.67. The stock has a market cap of $9.85 billion, a P/E ratio of 10.94, a P/E/G ratio of 0.87 and a beta of 1.51.

Tapestry Company Profile

(Get Free Report)

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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