Tapestry, Inc. (TPR) Bundle
Who Invests in Tapestry, Inc. (TPR) and Why?
Who Invests in Tapestry, Inc. and Why?
Understanding the investor landscape for Tapestry, Inc. (TPR) involves analyzing the diverse types of investors, their motivations, and strategies.
Key Investor Types
The following table breaks down the different types of investors engaged with Tapestry, Inc.:
| Investor Type | Percentage of Ownership | Typical Characteristics |
|---|---|---|
| Institutional Investors | 75% | Large investment firms, pension funds, and mutual funds. |
| Retail Investors | 15% | Individual investors, often investing through brokerage accounts. |
| Hedge Funds | 10% | Investment funds that use pooled funds and employ various strategies to earn active returns. |
Investment Motivations
Investors are attracted to Tapestry for several reasons:
- Growth Prospects: Analysts project a 5% CAGR in revenue over the next five years.
- Market Position: Tapestry's strong brand portfolio, including Coach and Kate Spade, solidifies its market presence.
- Dividends: The company declared dividends of $0.35 per share in the last quarter.
Investment Strategies
Investors employ various strategies when investing in Tapestry:
- Long-term Holding: Institutional investors often hold shares for extended periods to benefit from capital appreciation.
- Short-term Trading: Retail investors may engage in trading based on market fluctuations.
- Value Investing: Hedge funds look for undervalued stocks, particularly in times of market corrections.
Recent financial performance indicators further highlight investor interest:
| Financial Metrics | Q1 Fiscal 2025 | Q1 Fiscal 2024 |
|---|---|---|
| Net Sales | $1.51 billion | $1.51 billion |
| Gross Profit | $1.13 billion | $1.10 billion |
| Operating Income | $252 million | $253 million |
| Net Income | $186.6 million | $195 million |
As of September 28, 2024, Tapestry reported a gross margin of 75.3%, up from 72.5% in the previous year, showcasing operational efficiency.
Investor sentiment is also supported by Tapestry's strategic initiatives, including expansion into international markets and digital transformation efforts, which are expected to drive future growth.
Institutional Ownership and Major Shareholders of Tapestry, Inc. (TPR)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table summarizes the largest institutional investors in Tapestry, Inc. (TPR) along with their respective shareholdings:
| Institution | Shares Held (millions) | Percentage of Ownership (%) |
|---|---|---|
| The Vanguard Group, Inc. | 27.5 | 11.8 |
| BlackRock, Inc. | 25.6 | 11.0 |
| State Street Corporation | 20.1 | 8.6 |
| Wellington Management Group LLP | 14.8 | 6.3 |
| Invesco Ltd. | 12.3 | 5.3 |
Recent changes in ownership reveal that several institutional investors have adjusted their stakes in Tapestry. Notably:
- The Vanguard Group increased its holdings by 2.5 million shares, representing a 10% increase from the previous quarter.
- BlackRock's ownership remained stable with no significant changes.
- State Street Corporation reduced its stake by 1.2 million shares, a decrease of 5%.
- Wellington Management slightly decreased its holdings by 0.5 million shares, reflecting a 3% reduction.
- Invesco Ltd. increased its shares by 1.0 million, marking a 8% increase.
Institutional investors play a crucial role in the stock price and strategic direction of Tapestry, Inc. Their large stakes can influence market perception and investor sentiment. For example, a substantial increase in shares held by Vanguard and Invesco often correlates with increased stock price stability, as these firms are known for their long-term investment strategies. Furthermore, their involvement can lead to enhanced corporate governance practices and strategic initiatives aimed at maximizing shareholder value.
As of the latest financial reports, Tapestry's market capitalization stands at approximately $9.25 billion, reflecting the influence of institutional investors on its valuation. Additionally, the company's stock performance has shown resilience, with a year-to-date return of 15% as of September 28, 2024.
Key Investors and Their Influence on Tapestry, Inc. (TPR)
Key Investors and Their Impact on Tapestry, Inc. (TPR)
As of 2024, Tapestry, Inc. has attracted significant attention from various notable investors, which have actively shaped its strategic direction and stock performance. Below are key investors and their influence on the company.
Notable Investors
Several prominent investment firms and individual investors hold substantial stakes in Tapestry, Inc. Among them are:
- BlackRock, Inc. - One of the largest asset managers globally, owning approximately 8.3% of the total shares.
- The Vanguard Group, Inc. - Another major player, holding around 8.0% of the company’s shares.
- Wellington Management - Known for its active management, it possesses about 5.4% of Tapestry’s shares.
- State Street Corporation - Holds a stake of approximately 4.5%.
Investor Influence
These investors play a crucial role in influencing Tapestry's business decisions and stock movements:
- BlackRock and Vanguard often advocate for sustainable business practices and corporate governance reforms, which can lead to management shifts or changes in strategic direction.
- Wellington Management's involvement typically focuses on long-term growth strategies, impacting how the company positions its brands in the market.
- State Street’s voting power can sway decisions on major corporate actions, including mergers and acquisitions.
Recent Moves
Recent activities by these key investors include:
- BlackRock increased its stake by 1.2% in the last quarter, signaling confidence in the company’s growth trajectory.
- Vanguard slightly reduced its holdings by 0.5%, potentially reallocating resources to different sectors.
- Wellington Management has been vocal in its support for the recent acquisition strategy, particularly the merger with Capri Holdings, which is expected to enhance Tapestry's market position.
- State Street has engaged in discussions with management regarding operational efficiencies, emphasizing cost-cutting measures to improve margins.
| Investor | Ownership Percentage | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 8.3% | Increased stake by 1.2% |
| The Vanguard Group, Inc. | 8.0% | Reduced holdings by 0.5% |
| Wellington Management | 5.4% | Supported merger with Capri Holdings |
| State Street Corporation | 4.5% | Engaged in operational discussions |
Market Impact and Investor Sentiment of Tapestry, Inc. (TPR)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment of major shareholders toward Tapestry, Inc. is generally neutral. While the company has shown some resilience in its financial performance, investor reactions remain cautious amid market fluctuations and the impact of recent acquisitions.
Recent Market Reactions: Following the announcement of the Capri Acquisition and the issuance of $4.50 billion in senior unsecured notes, the stock experienced volatility. As of September 28, 2024, the stock price fluctuated between $33.50 and $38.00, reflecting market uncertainty regarding the integration of the acquired business and overall economic conditions.
Stock Performance Overview
| Metric | Value |
|---|---|
| Current Stock Price (as of September 28, 2024) | $36.75 |
| 52-Week High | $40.00 |
| 52-Week Low | $30.25 |
| Market Capitalization | $8.55 billion |
| Dividend Yield | 3.8% |
Analyst Perspectives: Analysts have mixed views on the impact of key investors on Tapestry, Inc.'s future. Some believe that the acquisition will strengthen the brand portfolio, while others caution about the associated debt burden and potential integration challenges. The average target price set by analysts is approximately $38.50, indicating a potential upside from current levels.
Analyst Ratings Overview
| Analyst Firm | Rating | Target Price |
|---|---|---|
| Goldman Sachs | Buy | $39.00 |
| Morgan Stanley | Hold | $36.00 |
| JP Morgan | Buy | $40.00 |
| Bank of America | Neutral | $37.00 |
Investor sentiment remains a critical factor as Tapestry, Inc. navigates through the complexities of its acquisition strategy and broader market conditions.
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Resources:
- Tapestry, Inc. (TPR) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Tapestry, Inc. (TPR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tapestry, Inc. (TPR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.