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

Tapestry, Inc. (NYSE:TPR) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $27.46, but opened at $29.00. Tapestry shares last traded at $29.07, with a volume of 649,382 shares trading hands.

The luxury accessories retailer reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.03. Tapestry had a net margin of 14.05% and a return on equity of 41.10%. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the previous year, the business earned $0.79 EPS. Tapestry’s quarterly revenue was up .4% compared to the same quarter last year.

Tapestry Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 26th. Investors of record on Friday, December 8th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 4.95%. Tapestry’s payout ratio is presently 36.08%.

Analyst Ratings Changes

A number of research firms have weighed in on TPR. Barclays raised shares of Tapestry from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $47.00 to $59.00 in a research report on Tuesday, August 1st. TheStreet lowered shares of Tapestry from a “b-” rating to a “c+” rating in a research report on Wednesday, November 1st. The Goldman Sachs Group cut their target price on shares of Tapestry from $49.00 to $46.00 and set a “buy” rating for the company in a research report on Thursday, August 17th. Robert W. Baird cut their target price on shares of Tapestry from $52.00 to $48.00 and set an “outperform” rating for the company in a research report on Friday, August 18th. Finally, Guggenheim reissued a “buy” rating and set a $60.00 target price on shares of Tapestry in a research report on Wednesday, August 23rd. Five research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat.com, Tapestry currently has an average rating of “Moderate Buy” and a consensus price target of $47.25.

Institutional Trading of Tapestry

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TPR. Brown Brothers Harriman & Co. increased its stake in Tapestry by 340.7% in the first quarter. Brown Brothers Harriman & Co. now owns 661 shares of the luxury accessories retailer’s stock valued at $25,000 after acquiring an additional 511 shares during the period. Alpha Paradigm Partners LLC bought a new stake in Tapestry in the third quarter valued at about $26,000. Glass Jacobson Investment Advisors llc bought a new stake in Tapestry during the second quarter worth about $27,000. Bell Investment Advisors Inc grew its stake in Tapestry by 718.1% during the third quarter. Bell Investment Advisors Inc now owns 949 shares of the luxury accessories retailer’s stock worth $27,000 after buying an additional 833 shares during the last quarter. Finally, ING Groep NV bought a new stake in Tapestry during the first quarter worth about $29,000. Institutional investors own 92.12% of the company’s stock.

Tapestry Price Performance

The company has a debt-to-equity ratio of 0.72, a current ratio of 1.84 and a quick ratio of 1.12. The stock has a market capitalization of $6.43 billion, a P/E ratio of 7.29, a PEG ratio of 0.58 and a beta of 1.48. The company’s 50 day simple moving average is $29.03 and its two-hundred day simple moving average is $36.63.

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.