Capri Holdings Limited (NYSE: CPRI) stock jumped 3.00% on Friday to $49.40 against a previous-day closing price of $47.96. With 1.06 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.6 million shares. During the session, the Apparel Manufacturing company that operates in wider Consumer Cyclical sector, reached to the highest price of $49.67 whereas the lowest price it dropped to was $48.26. The 52-week range on CPRI shows that it touched its highest point at $72.37 and its lowest point at $36.90 during that stretch. It currently has a 1-year price target of $68.75. Beta for the stock currently stands at 2.29.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CPRI was up-trending over the past week, with a rise of 2.19%, but this was up by 17.73% over a month. Three-month performance surged to 2.49% while six-month performance fell -19.66%. The stock lost -16.84% in the past year, while it has lost -23.89% so far this year. A look at the trailing 12-month EPS for CPRI yields 5.08 with Next year EPS estimates of 7.33. For the next quarter, that number is 1.36. This implies an EPS growth rate of 214.20% for this year and 8.74% for next year. EPS is expected to grow by 31.57% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.20%.
Float and Shares Shorts:
At present, 145.97 million CPRI shares are outstanding with a float of 134.70 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.03 million, which was 4.92% higher than short shares on Jun 14, 2022. In addition to Mr. John D. Idol as the firm’s Chairman & CEO, Mr. Thomas J. Edwards Jr. serves as its Exec. VP, CFO & COO.
Through their ownership of 96.13% of CPRI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.98% of CPRI, in contrast to 4.27% held by mutual funds. Shares owned by individuals account for 38.28%. As the largest shareholder in CPRI with 15.00% of the stake, Fidelity Management & Research Co holds 21,425,647 shares worth 21,425,647. A second-largest stockholder of CPRI, The Vanguard Group, Inc., holds 14,293,114 shares, controlling over 10.01% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CPRI, holding 11,027,533 shares or 7.72% stake. With a 3.40% stake in CPRI, the Vanguard International Value Fund is the largest stakeholder. A total of 4,861,508 shares are owned by the mutual fund manager. The Fidelity Blue Chip Growth Fund, which owns about 3.33% of CPRI stock, is the second-largest Mutual Fund holder. It holds 4,753,818 shares valued at 194.95 million. Vanguard Total Stock Market Index holds 3.05% of the stake in CPRI, owning 4,348,065 shares worth 178.31 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CPRI since 23 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CPRI analysts setting a high price target of $100.00 and a low target of $54.00, the average target price over the next 12 months is $68.56. Based on these targets, CPRI could surge 102.43% to reach the target high and rise by 9.31% to reach the target low. Reaching the average price target will result in a growth of 38.79% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CPRI will report FY 2023 earnings on 05/31/2023. Analysts have provided yearly estimates in a range of $6.96 being high and $5.80 being low. For CPRI, this leads to a yearly average estimate of $6.73. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Capri Holdings Limited surprised analysts by $0.20 when it reported $1.02 EPS against a consensus estimate of $0.82. The surprise factor in the prior quarter was $0.52. Based on analyst estimates, the high estimate for the next quarter is $1.40 and the low estimate is $1.32. The average estimate for the next quarter is thus $1.36.
Summary of Insider Activity:
Insiders traded CPRI stock several times over the past three months with 23 Buys and 23 Sells. In these transactions, 525,654 shares were bought while 269,114 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 1,201,964 while 1,541,424 shares were sold.