Tapestry (NYSE:TPR) Approves Stock Buyback Plan

Tapestry (NYSE:TPR) announced that its Board of Directors has approved a share buyback plan on Thursday, November 6th, RTT News reports. The company plans to repurchase $1.00 billion in shares. This repurchase authorization allows the luxury accessories retailer to buy up to 4.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research firms recently weighed in on TPR. Bank of America downgraded Tapestry from a “buy” rating to a “neutral” rating and increased their target price for the stock from $95.00 to $115.00 in a research report on Tuesday, July 29th. Robert W. Baird set a $130.00 price objective on shares of Tapestry in a report on Wednesday, October 29th. Raymond James Financial raised their target price on shares of Tapestry from $115.00 to $130.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 21st. Telsey Advisory Group reaffirmed an “outperform” rating and set a $125.00 price target on shares of Tapestry in a research report on Friday, October 31st. Finally, Barclays increased their price target on shares of Tapestry from $111.00 to $127.00 and gave the stock an “overweight” rating in a research note on Thursday, September 11th. Eighteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $115.80.

Tapestry Trading Down 9.5%

Shares of NYSE TPR opened at $98.88 on Friday. The company has a quick ratio of 1.31, a current ratio of 1.87 and a debt-to-equity ratio of 2.77. The stock’s 50 day moving average price is $110.91 and its two-hundred day moving average price is $96.89. Tapestry has a 52-week low of $49.84 and a 52-week high of $118.56. The stock has a market capitalization of $20.47 billion, a P/E ratio of 156.95, a PEG ratio of 2.72 and a beta of 1.71.

Tapestry (NYSE:TPR) last issued its quarterly earnings results on Thursday, November 6th. The luxury accessories retailer reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.25 by $0.13. The business had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.63 billion. Tapestry had a return on equity of 68.02% and a net margin of 2.61%.The business’s quarterly revenue was up 13.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.84 EPS. Tapestry has set its FY 2026 guidance at 5.450-5.600 EPS. On average, analysts anticipate that Tapestry will post 4.91 earnings per share for the current fiscal year.

Tapestry Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 22nd. Stockholders of record on Friday, December 5th will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, December 5th. Tapestry’s dividend payout ratio (DPR) is presently 253.97%.

Insider Activity

In related news, Director Alan Ka Ming Lau sold 11,320 shares of the stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $106.19, for a total transaction of $1,202,070.80. Following the sale, the director owned 8,153 shares in the company, valued at $865,767.07. This represents a 58.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Manesh Dadlani sold 7,882 shares of Tapestry stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $99.05, for a total value of $780,712.10. Following the completion of the transaction, the vice president owned 21,098 shares of the company’s stock, valued at approximately $2,089,756.90. The trade was a 27.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.32% of the company’s stock.

Tapestry Company Profile

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.