Tapestry's 0.77% Drop Amid Institutional Buying and Analyst Divergence as Coach Drives Resilience in 315th-Ranked Market Activity

On August 29, 2025, Tapestry (TPR) declined 0.77% with a trading volume of $310 million, ranking 315th in market activity. Institutional investors have shown renewed interest, with Redwood Investment Management acquiring 18,710 shares valued at $1.32 million and Northern Trust Corp increasing holdings by 3.0% to $183.9 million. The company’s quarterly dividend rose to $0.40 per share, yielding 1.6%, reflecting confidence in its financial stability despite a payout ratio of 222.22%.

Analyst activity highlighted mixed signals for the stock. TD Cowen upgraded TPR to “Buy” with a $100 target, while UBS cut its rating to “Neutral” and reduced the price target to $105. JPMorgan raised its target to $145, emphasizing optimism about Tapestry’s long-term potential. However, recent tariff-related challenges pressured the stock, with management forecasting $160 million in additional duties for FY 2026. Kate Spade’s underperformance and impairment charges further clouded investor sentiment, contributing to a 16% premarket selloff following the earnings report.

Despite these headwinds, Tapestry’s core brands, particularly Coach, demonstrated resilience. Quarterly revenue rose 8.3% year-over-year to $1.72 billion, exceeding estimates. The company’s FY 2026 guidance of $5.30–$5.45 EPS aligns with analyst expectations of $4.91. Institutional ownership remains robust at 90.77%, with key firms like Lido Advisors and Utah Retirement Systems boosting stakes by over 100% and 1.6%, respectively. These moves underscore confidence in Tapestry’s strategic focus on its premium segments and global expansion.

The backtest results indicate that TPR’s price action closely mirrored its institutional ownership trends and analyst revisions. A 14.3% dividend increase in August 2025 coincided with a 5.5% revenue growth estimate for the quarter, driven by Coach’s appeal to younger consumers. However, the stock’s 16% decline post-earnings highlighted vulnerability to external factors like tariffs and brand-specific challenges. The average target price of $105.47 among analysts remains above the current level, suggesting potential for a rebound if cost pressures ease and brand turnaround efforts gain traction.