Tapestry, Inc. (NYSE: TPR) received an upgrade from a “buy” to a “strong-buy” rating by analysts at Wall Street Zen, as detailed in a research note issued on February 10, 2024. This positive shift reflects growing confidence among financial experts regarding the luxury accessories retailer’s future performance.
Brokerage firms have been actively revising their price targets for Tapestry. Evercore raised its target from $129.00 to $150.00, maintaining an “outperform” rating. On February 6, 2024, both Goldman Sachs and Sanford C. Bernstein set target prices at $166.00 and $170.00, respectively. Barclays also contributed to the bullish outlook by establishing a price target of $179.00 with an “overweight” rating. The overall consensus among analysts is a “Moderate Buy,” with a weighted average price target of $147.00.
Financial Performance and Future Guidance
Tapestry reported its quarterly earnings on February 5, 2024, revealing earnings per share (EPS) of $2.69, surpassing the consensus estimate of $2.20 by $0.49. The company demonstrated a net margin of 6.95% and an impressive return on equity of 157.98%. Revenue for the quarter reached $2.50 billion, exceeding expectations of $2.29 billion and representing a 14.0% increase from the previous year, when the firm reported an EPS of $2.00.
Looking ahead, Tapestry has set a fiscal year 2026 guidance target ranging between $6.400 and $6.450 EPS. Analysts predict the company will achieve an EPS of $4.91 for the current fiscal year.
Share Buyback and Insider Activity
In a move indicating confidence in its stock valuation, Tapestry’s Board of Directors approved a share buyback plan on November 6, 2023. This plan allows the company to repurchase up to $1.00 billion worth of shares, estimated at 4.9% of its total shares.
Recent insider transactions have also garnered attention. On February 10, 2024, Director Anne Gates sold 6,498 shares at an average price of $153.79, for a total of approximately $999,327.42. After the sale, Gates retained 22,698 shares valued at about $3.49 million, reflecting a 22.26% decrease in ownership.
CEO Joanne C. Crevoiserat also sold 48,795 shares on February 18, 2024, for a total of $7.56 million, resulting in a 6.78% reduction in her holdings. Following these transactions, insiders sold a total of 165,539 shares worth approximately $25.36 million over the last ninety days, indicating that insiders currently hold around 1.32% of the company’s stock.
Institutional investors have shown significant interest in Tapestry, with 90.77% of the company’s shares currently held by such investors. Notable recent transactions include Woodline Partners LP, which increased its stake by 25.0% to own 17,490 shares valued at about $1.23 million. Other hedge funds, including Acadian Asset Management LLC and Sivia Capital Partners LLC, have also recently initiated positions in Tapestry.
Tapestry, headquartered in New York City, is recognized for its portfolio of luxury brands, including Coach, Kate Spade New York, and Stuart Weitzman, which offer a diverse range of products from handbags and accessories to footwear and apparel. The company continues to enhance its market presence through effective product design, marketing, and retail operations.
