Capri (NYSE:CPRI) Shares Gap Down Following Weak Earnings

Capri Holdings Limited (NYSE:CPRI) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $24.03, but opened at $22.44. Capri shares last traded at $21.09, with a volume of 822,867 shares traded.

The company reported $0.45 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.27). Capri had a negative net margin of 7.44% and a positive return on equity of 16.54%. During the same quarter last year, the company posted $1.20 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CPRI. BMO Capital Markets upgraded Capri from a “market perform” rating to an “outperform” rating and increased their price target for the stock from $25.00 to $31.00 in a report on Monday, January 6th. Jefferies Financial Group raised their target price on Capri from $20.00 to $23.00 and gave the stock a “hold” rating in a research note on Tuesday, January 28th. Citigroup raised Capri from a “neutral” rating to a “buy” rating and boosted their price target for the company from $21.00 to $29.00 in a research note on Friday, January 10th. Barclays reaffirmed an “equal weight” rating and set a $21.00 price objective on shares of Capri in a research report on Wednesday, November 20th. Finally, TD Cowen dropped their target price on shares of Capri from $57.00 to $22.00 and set a “hold” rating on the stock in a research report on Friday, November 15th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, Capri presently has a consensus rating of “Hold” and a consensus price target of $26.36.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Primecap Management Co. CA boosted its position in shares of Capri by 14.2% during the third quarter. Primecap Management Co. CA now owns 4,140,755 shares of the company’s stock valued at $175,734,000 after buying an additional 515,963 shares during the last quarter. Pacer Advisors Inc. lifted its stake in Capri by 22,554.7% during the 4th quarter. Pacer Advisors Inc. now owns 3,902,960 shares of the company’s stock valued at $82,196,000 after acquiring an additional 3,885,732 shares in the last quarter. FMR LLC boosted its holdings in Capri by 389.2% during the 3rd quarter. FMR LLC now owns 2,858,480 shares of the company’s stock worth $121,314,000 after acquiring an additional 2,274,149 shares during the last quarter. Vaughan Nelson Investment Management L.P. bought a new stake in shares of Capri in the 4th quarter worth $48,953,000. Finally, Geode Capital Management LLC raised its holdings in shares of Capri by 2.2% in the third quarter. Geode Capital Management LLC now owns 1,942,145 shares of the company’s stock valued at $82,446,000 after purchasing an additional 41,009 shares during the last quarter. Institutional investors and hedge funds own 84.34% of the company’s stock.

Capri Price Performance

The company has a market capitalization of $2.54 billion, a P/E ratio of -7.05, a price-to-earnings-growth ratio of 5.76 and a beta of 2.06. The business’s 50-day moving average is $22.68 and its two-hundred day moving average is $29.33. The company has a quick ratio of 0.38, a current ratio of 0.93 and a debt-to-equity ratio of 0.83.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites.