Tapestry Inc. (NYSE: TPR) received a significant upgrade from Wall Street Zen, which raised its rating from “buy” to “strong-buy.” This change reflects growing investor confidence in the luxury accessories retailer, as indicated in a research note issued on February 3, 2024. The upgrade comes alongside a series of positive evaluations from other prominent financial institutions.
Evercore lifted its price target on Tapestry from $129.00 to $150.00, maintaining an “outperform” rating. Similarly, Goldman Sachs set a target price of $166.00, while Sanford C. Bernstein reaffirmed its “outperform” rating with a target of $170.00. Barclays took a more bullish stance, establishing a price target of $179.00 and rating the stock as “overweight.” TD Cowen also restated a “buy” rating, reflecting a consensus among analysts that Tapestry’s stock is poised for growth.
Analysts have expressed a generally optimistic outlook for Tapestry. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” with a target price averaging $147.00. Of the analysts covering the stock, two rated it as a Strong Buy, thirteen issued Buy ratings, and five assigned a Hold rating.
Strong Financial Performance and Share Buyback Initiatives
Tapestry’s financial results further substantiate the upgrade. The company announced its quarterly earnings on February 5, 2024, reporting earnings per share (EPS) of $2.69, exceeding the consensus estimate of $2.20 by $0.49. The retailer achieved a net margin of 6.95% and a remarkable return on equity of 157.98%. Revenue for the quarter reached $2.50 billion, significantly surpassing the consensus estimate of $2.29 billion. This represents a 14.0% increase in revenue compared to the same quarter last year.
Looking ahead, Tapestry has set its fiscal year 2026 guidance at an EPS range of $6.400 to $6.450. Analysts anticipate that Tapestry will achieve an EPS of $4.91 for the current year. In a strategic move to enhance shareholder value, the company’s Board of Directors approved a share buyback plan on November 6, 2023, allowing for the repurchase of up to $1.00 billion in shares, representing approximately 4.9% of its total shares outstanding.
Insider Activity and Institutional Investments
Recent insider trading activity has also drawn attention. On February 10, 2024, Director Anne Gates sold 6,498 shares at an average price of $153.79, totaling nearly $999,327.42. Following this transaction, Gates retains 22,698 shares, valued at approximately $3,490,725.42. Additionally, CEO Joanne C. Crevoiserat sold 48,795 shares on February 18, 2024, for around $7,556,881.65. This sale reduced her ownership by 6.78%, leaving her with 671,193 shares valued at $103,947,659.91.
In the past ninety days, insiders have sold a total of 165,539 shares worth approximately $25,364,406, with insiders currently holding 1.32% of the total shares.
Institutional investors are also playing a significant role in Tapestry’s stock dynamics. Woodline Partners LP increased its position by 25.0% in the first quarter, now owning 17,490 shares valued at $1,231,000. Other firms, such as Acadian Asset Management and Envestnet Asset Management, have also acquired new stakes, indicating robust institutional interest. Currently, institutional investors hold approximately 90.77% of Tapestry’s shares.
Tapestry, based in New York City, is recognized for its portfolio of luxury brands, including Coach, Kate Spade New York, and Stuart Weitzman. The company designs and distributes a range of luxury products, including handbags, footwear, and lifestyle items. As Tapestry continues to enhance its market position, the recent upgrades and positive financial performance suggest a promising outlook for the luxury accessories retailer.
