Allspring Global Cuts Tapestry Stake 85.5%, Company Completes 13.475 MW Solar Projects
Allspring Global Investments reduced its Tapestry stake by 85.5% to 13,475 shares worth $1.534 million in Q3. Tapestry and Pivot Energy completed three Illinois community solar projects totaling 13.475 MWac under a 15-year REC purchase agreement expected to generate over 23,000 MWh annually.
1. Institutional Stake Reduction Highlights Investor Sentiment Shift
Allspring Global Investments Holdings LLC drastically cut its holdings in Tapestry by 85.5% during the third quarter, selling 79,375 shares and retaining just 13,475 shares valued at $1.534 million. This substantial divestment contrasts sharply with Vanguard Group’s modest 2.4% stake increase—adding 606,686 shares to reach 25.9 million shares worth $2.275 billion—and Geode Capital Management’s 3.0% boost. The mixed institutional activity, with SRS Investment Management up 12.4% and Schroder Investment Management up 1,661.6%, underscores divergent outlooks among large investors, as overall institutional ownership remains near 90.8%.
2. Q3 Earnings Top Expectations and FY2026 Guidance Introduced
In its latest quarter, Tapestry delivered $1.38 earnings per share, surpassing consensus by $0.13, and reported revenue of $1.70 billion, up 13.1% year-over-year and $70 million above forecasts. The company’s net margin of 3.77% and return on equity of 116.4% reflect operational efficiency gains. Management issued full-year 2026 EPS guidance of 5.45–5.60, against analyst estimates near 4.91, signaling confidence in sustained margin expansion and top-line growth driven by the Coach, Kate Spade, and Stuart Weitzman brands.
3. Shareholder Returns Bolstered by Buyback and Dividend Initiatives
Tapestry’s board authorized a $1.0 billion share repurchase plan, representing up to 4.9% of shares outstanding, reinforcing management’s belief in intrinsic value. Additionally, the company declared a quarterly dividend of $0.40 per share, equating to a $1.60 annualized payout and a 1.2% yield, with a dividend payout ratio of 142.9%. These moves provide immediate returns to shareholders and support equity valuation amid elevated price-to-earnings multiples.
4. Insider Sales and Analyst Outlook Reflect Cautious Optimism
Senior executives collectively sold over 115,000 shares valued at approximately $12.0 million in recent months, reducing CEO Todd Kahn’s stake by 25.1% and CFO Scott Roe’s by 11.3%. Despite these insider dispositions, seventeen analysts maintain a Buy or Outperform view, with consensus targets implying mid-teens upside. Major brokerage upgrades and target increases from Morgan Stanley, JPMorgan Chase, and Wells Fargo signal continued confidence in Tapestry’s brand strength and growth trajectory.