What Happened?
Shares of luxury fashion conglomerate Tapestry (NYSE: TPR) fell 1.9% in the afternoon session after Guggenheim initiated coverage on the company with a "Neutral" rating. The new coverage was led by analyst Simeon Siegel, who did not assign a price target as part of the initiation.
A "Neutral" rating can suggest that an analyst believes the stock is fairly valued, lacking a strong catalyst for immediate growth. This less-than-enthusiastic outlook may have prompted some investors to sell shares. The pullback also followed a period of strong performance for the company, as its stock had reached an all-time high during the previous trading session after a significant price increase over the past year.
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What Is The Market Telling Us
Tapestry’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock gained 3.9% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut.
New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Tapestry is up 77.9% since the beginning of the year, and at $116.79 per share, it is trading close to its 52-week high of $118.21 from December 2025. Investors who bought $1,000 worth of Tapestry’s shares 5 years ago would now be looking at an investment worth $3,943.
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