Capri (NYSE:CPRI) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Capri (NYSE:CPRI) from a hold rating to a sell rating in a research note released on Thursday, Zacks.com reports. Zacks Investment Research currently has $33.00 price objective on the stock.

According to Zacks, “Shares of Capri Holdings have declined and underperformed the industry in the past six months. The company’s trimming of fiscal 2020 sales forecast due to adverse foreign currency fluctuations and lower Michael Kors revenue might have hurt investor sentiment. Also, a top line miss and year-over-year fall in the bottom line during the first quarter were not well perceived. Management expects Michael Kors’ revenue to decline moderately in the second quarter with operating margin expected to be lower than the year-ago period. Nonetheless, we believe that constant deployment of resources to expand product offerings and upgrade distribution infrastructure along with cost containment efforts, focus on e-commerce platform and accretive buyouts bode well. Also, lowered full-year revenue view still indicates year-over-year improvement.”

A number of other research firms have also commented on CPRI. Guggenheim restated a hold rating on shares of Capri in a research note on Wednesday, May 29th. Argus began coverage on Capri in a research note on Wednesday, June 12th. They set a hold rating on the stock. Canaccord Genuity restated a buy rating and set a $67.00 price objective (down previously from $76.00) on shares of Capri in a research note on Thursday, May 30th. They noted that the move was a valuation call. Wells Fargo & Co lowered their price objective on Capri from $48.00 to $40.00 and set a market perform rating on the stock in a research note on Thursday, May 30th. Finally, Credit Suisse Group lowered their price objective on Capri from $52.00 to $40.00 and set a neutral rating on the stock in a research note on Thursday, May 30th. They noted that the move was a valuation call. Two research analysts have rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $49.92.

NYSE:CPRI traded down $0.10 during mid-day trading on Thursday, hitting $32.10. 205,443 shares of the stock were exchanged, compared to its average volume of 3,623,929. The stock has a market capitalization of $4.76 billion, a price-to-earnings ratio of 6.46, a price-to-earnings-growth ratio of 1.12 and a beta of 0.82. The firm’s 50-day simple moving average is $30.07 and its 200 day simple moving average is $38.28. The company has a debt-to-equity ratio of 1.58, a quick ratio of 0.42 and a current ratio of 1.03. Capri has a fifty-two week low of $25.25 and a fifty-two week high of $74.17.

Capri (NYSE:CPRI) last released its quarterly earnings results on Wednesday, August 7th. The company reported $0.95 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.90 by $0.05. The business had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.37 billion. Capri had a return on equity of 30.29% and a net margin of 7.45%. The firm’s revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period last year, the firm posted $1.32 EPS. On average, analysts predict that Capri will post 4.9 EPS for the current fiscal year.

In other Capri news, CEO John D. Idol purchased 363,000 shares of the firm’s stock in a transaction dated Thursday, August 15th. The shares were bought at an average price of $27.48 per share, for a total transaction of $9,975,240.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 5.30% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the company. River & Mercantile Asset Management LLP increased its stake in shares of Capri by 102.8% in the 2nd quarter. River & Mercantile Asset Management LLP now owns 223,370 shares of the company’s stock valued at $7,743,000 after purchasing an additional 113,220 shares during the last quarter. BlackRock Inc. increased its stake in shares of Capri by 1.3% in the 2nd quarter. BlackRock Inc. now owns 10,363,986 shares of the company’s stock valued at $359,422,000 after purchasing an additional 133,008 shares during the last quarter. Hodges Capital Management Inc. bought a new position in shares of Capri in the 2nd quarter valued at $7,981,000. Barings LLC increased its stake in shares of Capri by 12.5% in the 2nd quarter. Barings LLC now owns 6,300 shares of the company’s stock valued at $218,000 after purchasing an additional 700 shares during the last quarter. Finally, Kovitz Investment Group Partners LLC bought a new position in shares of Capri in the 2nd quarter valued at $3,245,000. Institutional investors own 85.80% of the company’s stock.

Capri Company Profile

Capri Holdings Limited design, markets, distributes, and retails branded women's and men's apparel and accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK Retail segment sells women's apparel; handbags and small leather goods; men's apparel; footwear; and licensed products comprising watches, jewelry, fragrances, and beauty and eyewear.

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