DME Capital Scooped Up Over 2 Million Capri Holdings Shares. Is the Stock a Buy?
Key Points
DME Capital added 2,080,410 Capri shares; estimated trade size of $48.12 million (based on average Q4 pricing).
Quarter-end position value rose by $62.80 million, reflecting both purchases and price movement.
The transaction value equals 1.69% of the fund's 13F AUM.
Post-trade holding: 4,768,007 shares valued at $116.34 million.
The Capri stake now represents 4.08% of DME's 13F AUM, placing it outside the fund's top five holdings.
- 10 stocks we like better than Capri ›
What happened
According to an SEC filing dated February 17, 2026, DME Capital Management, LP increased its position in Capri Holdings (NYSE:CPRI) by 2,080,410 shares during the fourth quarter.
The fund's estimated transaction value, based on the quarter's average closing price, was $48.12 million. The total quarter-end position value for Capri rose by $62.80 million, which includes both new share purchases and stock price changes during the period.
What else to know
DME's move was a buy; Capri now accounts for 4.08% of reported 13F AUM.
Top five holdings after the filing:
- NYSE:GRBK: $593.23 million (20.8% of AUM)
- NYSE:FLR: $220.18 million (7.7% of AUM)
- NYSE:CNR: $185.91 million (6.5% of AUM)
- NASDAQ:BHF: $180.90 million (6.3% of AUM)
- NYSE:GPK: $126.73 million (4.4% of AUM)
As of February 17, 2026, Capri shares were priced at $20.38, down 5.3% over one year, underperforming the S&P 500 by 21.2 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.33 billion |
| Net income (TTM) | ($504.0 million) |
| Price (as of market close 2/17/26) | $20.38 |
| One-year price change | (5.3%) |
Company snapshot
- Capri Holdings offers luxury apparel, footwear, handbags, accessories, and licensed products under the Versace, Jimmy Choo, and Michael Kors brands.
- It generates revenue through direct retail, wholesale distribution, e-commerce operations, and brand licensing agreements.
- The company targets global consumers seeking premium and luxury goods, with a presence in North America, Europe, Asia, and other international markets.
Capri Holdings operates as a global luxury fashion group, leveraging a portfolio of iconic brands to serve the high-end apparel and accessories market.
The company combines direct-to-consumer retail, wholesale, and licensing to diversify revenue streams and expand its international reach. Its multi-brand strategy and established distribution network support its competitive positioning within the luxury goods sector.
What this transaction means for investors
Hedge fund DME Capital Management’s purchase of additional shares in Capri Holdings is noteworthy because it was a significant buy. The stock rose from 2.1% of DME’s assets under management in the third quarter to 4.1%, catapulting it to the seventh top holding out of 41 at the end of Q4.
Such a substantial increase in DME’s position suggests it’s bullish on Capri Holdings. The stock has dropped from its 52-week high of $28.27 reached in December of 2025, due in part to the impact of high tariffs.
However, with the Supreme Court ruling a portion of the Trump administration’s new tariffs unconstitutional, Capri could begin to see benefits to its gross margins as the tariff changes are unfurled.
That said, Capri Holdings sales are in decline. In its fiscal third quarter ended Dec. 27, revenue dropped 4% year over year to $1.03 billion. The company expects to finish its 2026 fiscal year with $3.5 billion in sales, falling from fiscal 2025’s $4.4 billion. Consequently, investors may want to observe Capri’s performance over the next few quarters before deciding to buy.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Brick Partners. The Motley Fool has a disclosure policy.
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