Capri (NYSE:CPRI) Shares Gap Down on Disappointing Earnings

Capri Holdings Limited (NYSE:CPRI) shares gapped down prior to trading 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 trading hands.

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

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Citigroup upgraded shares of Capri from a “neutral” rating to a “buy” rating and boosted their target price for the company from $21.00 to $29.00 in a report on Friday, January 10th. Jefferies Financial Group boosted their target price on shares of Capri from $20.00 to $23.00 and gave the company a “hold” rating in a report on Tuesday, January 28th. Robert W. Baird decreased their target price on shares of Capri from $24.00 to $23.00 and set a “neutral” rating on the stock in a report on Friday, November 8th. Wells Fargo & Company boosted their price target on shares of Capri from $28.00 to $30.00 and gave the company an “overweight” rating in a research note on Monday, January 27th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Capri from $15.00 to $19.00 and gave the company a “neutral” rating in a research note on Monday, December 16th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $26.36.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Primecap Management Co. CA boosted its holdings in shares of Capri by 14.2% in the 3rd 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 in the last quarter. Pacer Advisors Inc. boosted 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 worth $82,196,000 after purchasing an additional 3,885,732 shares during the period. FMR LLC boosted its stake 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 purchasing an additional 2,274,149 shares during the period. Vaughan Nelson Investment Management L.P. acquired a new stake in Capri during the 4th quarter worth $48,953,000. Finally, Geode Capital Management LLC boosted its stake in Capri by 2.2% during the 3rd quarter. Geode Capital Management LLC now owns 1,942,145 shares of the company’s stock worth $82,446,000 after purchasing an additional 41,009 shares during the period. Institutional investors and hedge funds own 84.34% of the company’s stock.

Capri Stock Performance

The stock has a market cap of $2.43 billion, a price-to-earnings ratio of -6.89, a PEG ratio of 5.76 and a beta of 2.06. The stock’s 50 day moving average is $22.72 and its two-hundred day moving average is $29.39. The company has a current ratio of 0.93, a quick ratio of 0.38 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.