Capri Holdings Limited (CPRI) saw its stock price decline by 2.22% on December 3, 2024, closing at $22.86. The stock opened at $23.30 and reached a high of $23.44 before dipping to a low of $22.51 during the trading session. The trading volume was notably low at 2,246,861 shares, about 49.39% of the average daily volume. The downward pressure on Capri's stock can be attributed to a significant reduction in institutional ownership, as Charles Schwab Investment Management Inc. decreased its holdings by 23.3% in the third quarter, selling 282,838 shares. This move by a major institutional investor may have signaled a lack of confidence in Capri's near-term prospects, contributing to the stock's decline.
Additionally, ongoing investigations into the fairness of Capri's proposed sale to Tapestry, Inc. for $57.00 per share have raised concerns among investors. Legal firms are scrutinizing whether the deal terms are in the best interest of Capri shareholders, with some analysts suggesting the offer undervalues the company. Despite these challenges, the stock has a consensus "Hold" rating from analysts, with a 12-month price target of $28.20, indicating potential upside.