Tapestry Inc. (NYSE: TPR) stock jumped 1.57% on Thursday to $31.03 against a previous-day closing price of $30.55. With 3.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.59 million shares. During the session, the Luxury Goods company that operates in wider Consumer Cyclical sector, reached to the highest price of $31.13 whereas the lowest price it dropped to was $30.59. The 52-week range on TPR shows that it touched its highest point at $47.48 and its lowest point at $27.53 during that stretch. It currently has a 1-year price target of $48.56. With its current market cap of 7.04 billion, TPR has annualized dividend of $1.40 while the current yield stands at 4.51%. Beta for the stock currently stands at 1.51.
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 TPR was down-trending over the past week, with a drop of -2.39%, but this was down by -12.32% over a month. Three-month performance dropped to -28.93% while six-month performance fell -23.48%. The stock lost -9.90% in the past year, while it has lost -18.51% so far this year. A look at the trailing 12-month EPS for TPR yields 3.88 with Next year EPS estimates of 4.51. For the next quarter, that number is 0.90. This implies an EPS growth rate of 22.40% for this year and 9.22% for next year. EPS is expected to grow by 11.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.70%.
Float and Shares Shorts:
At present, 230.40 million TPR shares are outstanding with a float of 226.90 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.5 million, which was 2.86% higher than short shares on Jul 30, 2023. In addition to Ms. Joanne C. Crevoiserat as the firm’s Pres, CEO & Director, Mr. Todd Kahn serves as its CEO & Brand Pres of Coach.
Through their ownership of 96.32% of TPR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.65% of TPR, in contrast to 35.85% held by mutual funds. Shares owned by individuals account for 1.11%. As the largest shareholder in TPR with 13.19% of the stake, The Vanguard Group, Inc. holds 30,574,772 shares worth 30,574,772. A second-largest stockholder of TPR, JPMorgan Investment Management, I, holds 12,169,946 shares, controlling over 5.25% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in TPR, holding 11,907,002 shares or 5.14% stake. With a 3.11% stake in TPR, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,206,862 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.59% of TPR stock, is the second-largest Mutual Fund holder. It holds 6,011,577 shares valued at 259.4 million. JPMorgan Large Cap Growth Fund holds 2.45% of the stake in TPR, owning 5,684,815 shares worth 245.3 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2023, TPR reported revenue of $1.62B and operating income of $248.50M. The EBITDA in the recently reported quarter was $240.40M and diluted EPS was $0.75.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TPR since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TPR analysts setting a high price target of $60.00 and a low target of $33.00, the average target price over the next 12 months is $46.21. Based on these targets, TPR could surge 93.36% to reach the target high and rise by 6.35% to reach the target low. Reaching the average price target will result in a growth of 48.92% 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.
Summary of Insider Activity:
Insiders traded TPR stock several times over the past three months with 11 Buys and 24 Sells. In these transactions, 296,087 shares were bought while 118,921 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 31 over the past year. The total number of shares bought during that period was 508,944 while 223,193 shares were sold.