Tiffany & Company Insider Buys $4.97 Million Worth of Stock

02:28 09/11/2018

Tiffany & Company TIF  Director Francesco Trapani just bought another 40,000 shares at $124.25 apiece for $4.97 million. It appears he bought on the earnings pullback. In late August 2018, the company posted 26% earnings growth, and boosted its forecast. Analysts were pleased. In fact, RBC Capital lifted its price target on the stock from $126 to $132 a share. UBS hiked from $138 to $141. And KeyBanc raised from $140 to $150. Unfortunately, that wasn’t good enough for the Street. Traders sent the stock from a high of $138 to nearly $120. Comparable sales growth in the U.S. showed signs of slowing, as well. And analysts are concerned that it won’t be able to maintain its high P/E ratio of 34.22. Also, Oppenheimer analysts still see short-term risk on a stronger dollar. While the firm sees "clear indications" of successful repositioning, they are still concerned that a stronger dollar could hurt spending by foreign tourists in the US. "The US dollar strengthening began only recently and has persisted into Q3, and history shows such moves take time to impact sales," analysts say, adding that they anticipate downside risk to $120, as noted by Dow Jones. Still, it appears Director Francesco Trapani believes this is a temporary setback. Spending $4.97 million on stock is a major and bullish statement.

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