Investors Buy High Volume of Put Options on Tapestry (NYSE:TPR)

Tapestry, Inc. (NYSE:TPR) saw some unusual options trading activity on Monday. Traders acquired 10,607 put options on the stock. This represents an increase of approximately 84% compared to the typical volume of 5,772 put options.

Hedge Funds Weigh In On Tapestry

Hedge funds and other institutional investors have recently modified their holdings of the stock. Pacer Advisors Inc. boosted its stake in shares of Tapestry by 53.1% in the 2nd quarter. Pacer Advisors Inc. now owns 6,020,625 shares of the luxury accessories retailer’s stock valued at $257,623,000 after purchasing an additional 2,087,586 shares in the last quarter. Erste Asset Management GmbH bought a new position in Tapestry in the 3rd quarter valued at $64,016,000. Clearbridge Investments LLC acquired a new position in Tapestry in the first quarter worth $54,055,000. AQR Capital Management LLC grew its holdings in Tapestry by 235.9% during the 2nd quarter. AQR Capital Management LLC now owns 1,497,514 shares of the luxury accessories retailer’s stock worth $61,578,000 after acquiring an additional 1,051,743 shares during the last quarter. Finally, Coronation Fund Managers Ltd. boosted its position in Tapestry by 265.1% in the 2nd quarter. Coronation Fund Managers Ltd. now owns 1,044,641 shares of the luxury accessories retailer’s stock valued at $44,700,000 after buying an additional 758,539 shares during the last quarter. Institutional investors own 90.77% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on TPR shares. Bank of America boosted their target price on shares of Tapestry from $52.00 to $60.00 and gave the stock a “buy” rating in a report on Friday, October 25th. Citigroup raised their price objective on Tapestry from $49.00 to $55.00 and gave the stock a “buy” rating in a research note on Friday, October 25th. Raymond James reaffirmed an “outperform” rating and set a $57.00 target price (up from $55.00) on shares of Tapestry in a report on Friday, November 8th. TD Cowen downgraded shares of Tapestry from a “buy” rating to a “hold” rating and set a $52.00 target price on the stock. in a research note on Tuesday, October 29th. Finally, Guggenheim lifted their price target on Tapestry from $60.00 to $70.00 and gave the company a “buy” rating in a report on Friday. Six research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $57.82.

Tapestry Stock Performance

Shares of TPR traded down $0.88 on Monday, reaching $56.35. 1,738,350 shares of the stock traded hands, compared to its average volume of 3,330,246. The stock’s 50-day moving average price is $46.55 and its 200-day moving average price is $42.99. The company has a debt-to-equity ratio of 2.35, a current ratio of 4.93 and a quick ratio of 4.38. The firm has a market cap of $13.13 billion, a price-to-earnings ratio of 16.50, a P/E/G ratio of 1.99 and a beta of 1.53. Tapestry has a 12 month low of $30.19 and a 12 month high of $58.49.

Tapestry (NYSE:TPR) last announced its quarterly earnings data on Thursday, August 15th. The luxury accessories retailer reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.88 by $0.04. The company had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Tapestry had a net margin of 12.12% and a return on equity of 36.26%. The business’s revenue was down 1.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.95 EPS. Equities analysts forecast that Tapestry will post 4.56 EPS for the current fiscal year.

Tapestry Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 23rd. Shareholders of record on Friday, December 6th will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.48%. The ex-dividend date is Friday, December 6th. Tapestry’s payout ratio is 40.46%.

About Tapestry

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.