SVB Wealth LLC Sees 53.2% Growth in Tapestry, Inc Shares
In the world of luxury fashion accessories and lifestyle brands, Tapestry, Inc reigns supreme as a leading provider. It’s no wonder SVB Wealth LLC recently grew its stake in the company by 53.2% during the fourth quarter of last year. According to its most recent filing with the Securities & Exchange Commission, this led to the acquisition of an additional 5,027 shares, bringing their total holdings to 14,474 shares at a worth of $551,000.
Tapestry operates through three segments – Coach, Kate Spade and Stuart Weitzman – where it offers its luxury products globally to customers through various channels including stores (both physical and online), concession shop-in-shops and independent third-party distributors. The Coach brand takes center stage amongst these offerings with global sales being one of Tapestry’s key drivers.
The market capitalization of TPR stock opened at $40.70 on Friday with a total valuation of $9.43 billion for the business. Its price-to-earnings ratio is calculated at 11.06 with a PEG ratio standing at 0.84 whilst beta comes in at 1.44 which is high risk compared to equivalent companies trading in the same sector.
Despite being relatively more aggressive when it comes to leverage ratios than some other industry players with a debt-to-equity ratio of 0.73 (compared to an average value ranging from 0-0.5) ,Tapistry has proven that it can hold its own given that it has quick and current ratios both above industry benchmarks at 1:12 and 1:94 respectively.
Overall Tapistry stock has enjoyed heavy demand over the recent past amidst strong earnings reports from analysts coupled with a thriving luxury goods market not just within the United States but globally as well; thus appealing greatly to investors. This sentiment becomes apparent when looking at stock prices that have been sitting at their highest levels in a year with previous trade lows being set at $27.53 whilst the highs were set at $47.48 over the last 12 months. TPR currently has a fifty-day moving average of $41.10, which is set to increase if all current trends continue as expected given the company’s robust financials.
In conclusion, Tapestry currently boasts strong fundamentals for shareholders who wish to see a steady and reliable investment opportunity play out in relation to the luxury fashion landscape, hence it is no surprise why SVB Wealth LLC would opt to expand its investment portfolio within this exciting space.
Institutional Investors Boost Tapestry, Inc. as Company Reports Positive Earnings and Dividend Payment
Tapestry, Inc. has been given a boost by institutional investors and hedge funds who have recently modified their holdings of the company. Brown Brothers Harriman & Co. has been particularly active, increasing its position in Tapestry by 340.7% during Q1 2017 to own 661 shares worth $25,000 after purchasing an additional 511 shares during the period. The percentage of stock owned by institutional investors now totals 92.84%. Whether these moves reflect confidence in the luxury accessories provider is unclear.
Several research analysts have recently issued reports on TPR’s stock with Citigroup amongst them, upping its target price from $40.00 to $50.00 and giving it a “buy” rating in February this year; whilst Credit Suisse Group has boosted their price objective from $45.00 to $55.00 with an “outperform” rating; and OTR Global raising shares of Tapestry from a “mixed” rating to a “positive” rating back in April this year.
The luxury accessories retailer released news regarding earnings last month which were ahead of expectations at $0.78 EPS for the quarter, topping analysts’ consensus estimates of $0.59 by $0.19, with Coach brand products operating sales via the internet and concession shop-in-shops.
Tapestry’s profits ($1.51bn) were also reported recently (compare to analyst estimates of $1.44bn) which again reflected positively on the company.
In addition, Tapestry disclosed that shareholders will receive a quarterly dividend payment next month scheduled for Monday June 26th (shareholders must be recorded on Friday June 9th to qualify). This move is indicative that TPR views itself as a strong financial investment, as some companies choose not to pay out dividends or only do so once per year.
Tapestry’s recent positive financial news could offer prospective investors further encouragement, and we will be interested to observe how the actions of institutional investors evolve in response.
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