Capri Holdings (CPRI) Stock Sees Significant Options Activity and Pending Acquisition

Capri Holdings Limited (NYSE: CPRI), the parent company of luxury brands Michael Kors, Versace, and Jimmy Choo, has been the focus of significant options trading activity in recent days. According to Benzinga, high-rolling investors have been positioning themselves bullish on CPRI, with a notable increase in options trades observed on October 24, 2024.

The options trading data indicates a split sentiment among major traders, with 50% being bullish and 37% bearish. The trades included one put option valued at $46,000 and seven call options totaling $358,060. This unusual activity often suggests that some investors may have privileged information about the company’s future performance.

The market is watching CPRI closely as the company prepares to release its second quarter fiscal 2025 financial results on November 7, 2024, after market close. Notably, Capri Holdings will not conduct an earnings call due to its pending acquisition by Tapestry, Inc..

Analysts have set an average price target for CPRI at $45.90, with forecasts ranging from $31.00 to $57.00. This represents a potential upside of 7.65% from the last closing price. The current brokerage recommendation stands at an average of 2.85 on a scale of 1 to 5, indicating a general ‘Hold’ recommendation from the 13 brokerage firms tracked.

As of October 2024, Capri Holdings has a market capitalization of approximately $5.06 billion, making it the world’s 2748th most valuable company by market cap.

The Relative Strength Index (RSI) readings suggest that the stock may be approaching overbought levels, with the current price at $41.60, down by 0.5% on the day.