Capri Holdings Ltd (NYSE: CPRI) has experienced a decline in its stock price by -3.29 compared to its previous closing price of 37.96. However, the company has seen a fall of -5.70% in its stock price over the last five trading days. Bloomberg Markets and Finance reported 2024-04-23 that The US Federal Trade Commission sued to stop Tapestry’s $8.5 billion takeover of rival Capri Holdings, saying the acquisition would harm consumers by raising prices on handbags and accessories in the affordable luxury sector. Kimberly Adams reports on Bloomberg Television.
Is It Worth Investing in Capri Holdings Ltd (NYSE: CPRI) Right Now?
The price-to-earnings ratio for Capri Holdings Ltd (NYSE: CPRI) is above average at 20.57x. The 36-month beta value for CPRI is also noteworthy at 2.07. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
The public float for CPRI is 113.71M, and at present, short sellers hold a 5.69% of that float. The average trading volume of CPRI on April 23, 2024 was 1.31M shares.
CPRI’s Market Performance
The stock of Capri Holdings Ltd (CPRI) has seen a -5.70% decrease in the past week, with a -18.94% drop in the past month, and a -25.82% fall in the past quarter. The volatility ratio for the week is 2.79%, and the volatility levels for the past 30 days are at 2.60% for CPRI. The simple moving average for the past 20 days is -13.14% for CPRI’s stock, with a -22.42% simple moving average for the past 200 days.
Analysts’ Opinion of CPRI
JP Morgan, on the other hand, stated in their research note that they expect to see CPRI reach a price target of $47. The rating they have provided for CPRI stocks is “Neutral” according to the report published on July 31st, 2023.
Morgan Stanley gave a rating of “Equal-Weight” to CPRI, setting the target price at $40 in the report published on June 13th of the previous year.
CPRI Trading at -18.02% from the 50-Day Moving Average
After a stumble in the market that brought CPRI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -32.67% of loss for the given period.
Volatility was left at 2.60%, however, over the last 30 days, the volatility rate increased by 2.79%, as shares sank -18.55% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -21.82% lower at present.
During the last 5 trading sessions, CPRI fell by -5.96%, which changed the moving average for the period of 200-days by +4.39% in comparison to the 20-day moving average, which settled at $41.85. In addition, Capri Holdings Ltd saw -26.93% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for CPRI
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.65 for the gross margin
The net margin for Capri Holdings Ltd stands at 0.04. The total capital return value is set at 0.05. Equity return is now at value 10.06, with 2.76 for asset returns.
Based on Capri Holdings Ltd (CPRI), the company’s capital structure generated 0.66 points at debt to capital in total, while cash flow to debt ratio is standing at 0.11. The debt to equity ratio resting at 1.92. The interest coverage ratio of the stock is 11.39.
Currently, EBITDA for the company is 689.0 million with net debt to EBITDA at 8.63. When we switch over and look at the enterprise to sales, we see a ratio of 1.47. The receivables turnover for the company is 14.24for trailing twelve months and the total asset turnover is 0.69. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.06.
Conclusion
In summary, Capri Holdings Ltd (CPRI) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
