An interesting stock that came up in some of our conversations today is Capri Holdings Limited (NYSE:CPRI). At current price of $36.16, the shares have already added 1.31 points (3.76% higher) from its previous close of $34.85. Should you buy or avoid them? The stock sets an active trading volume day with a reported 852412 contracts so far this session. CPRI shares had a relatively better volume day versus average trading capacity of 2.68 million shares, but with a 0.14 billion float and a -7.34% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CPRI stock indicates that the average analyst price target is $44.33 per share. This means the stock has a potential increase of 22.59% from where the CPRI share price has been trading recently which is between $34.83 and $35.89. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $31. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $80.
During the recent trading session for Capri Holdings Limited (NYSE:CPRI), the company witnessed their stock drop by $-0.25 over a week and surge $2.01 from the price 20 days ago. When compared to their established 52-week high of $50, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 11/04/19. The recent low of $25.25 stood for a -27.68% since 03/09/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.89 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for CPRI is set at $40, a figure which is below the recent 1-year high the stock witnessed.
Looking at the current readings for Capri Holdings Limited, the two-week RSI stands at 55.51. This figure suggests that CPRI stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CPRI readings is similarly very revealing as it has a stochastic reading of 40.54% at this stage. This figure means that CPRI share price today is being neutral.
Technical chart claims that Capri Holdings Limited (CPRI) would settle between $35.55/share to $36.25/share level. However, if the stock price goes below the $34.49 mark, then the market for Capri Holdings Limited becomes much weaker. If that happens, the stock price might even plunge as low as $34.13 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.47. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Barclays, assumed coverage of CPRI assigning Equal Weight rating, according to their opinion released on November 13. Guggenheim analysts bumped their rating on Capri Holdings Limited (NYSE:CPRI) stock from Neutral to Buy in a separate flash note issued to investors on November 06. Analysts at Needham are sticking to their Buy stance. However, on August 08, they lifted price target for these shares to $50 from $54.
CPRI equity has an average rating of 2.8, with the figure leaning towards a bullish end. 19 analysts who tracked the company were contacted by Reuters. Amongst them, 12 rated the stock as a hold while the remaining 7 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 7 analysts rated Capri Holdings Limited (NYSE:CPRI) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, CPRI stock price is currently trading at 6.59X forward 12-month Consensus EPS estimates, and its P/E ratio is 15.7 while for the average stock in the same group, the multiple is 21.9. Capri Holdings Limited current P/B ratio of 2.2 means it is trading at a discount against its industry’s 3.6.