Carter’s (NYSE:CRI) Downgraded to “Hold” Rating by Wall Street Zen

Wall Street Zen lowered shares of Carter’s (NYSE:CRI) from a buy rating to a hold rating in a research note released on Saturday.

A number of other equities analysts have also recently commented on the company. Citigroup reissued a “buy” rating on shares of Carter’s in a report on Tuesday. Zacks Research lowered Carter’s from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 25th. The Goldman Sachs Group upgraded Carter’s from a “neutral” rating to a “buy” rating and set a $38.00 target price on the stock in a research report on Thursday, April 9th. UBS Group reiterated a “buy” rating on shares of Carter’s in a research report on Wednesday, July 8th. Finally, Wells Fargo & Company raised Carter’s from an “underweight” rating to an “equal weight” rating and boosted their target price for the stock from $30.00 to $42.00 in a research note on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $41.17.

Carter’s Stock Performance

Shares of NYSE:CRI opened at $38.70 on Friday. Carter’s has a 1 year low of $23.38 and a 1 year high of $44.44. The stock has a market capitalization of $1.43 billion, a price-to-earnings ratio of 15.60 and a beta of 0.86. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.80 and a quick ratio of 1.72. The company’s 50 day simple moving average is $39.65 and its 200 day simple moving average is $37.48.

Carter’s (NYSE:CRI) last released its earnings results on Wednesday, May 6th. The textile maker reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.26. The firm had revenue of $681.11 million during the quarter, compared to analysts’ expectations of $660.59 million. Carter’s had a return on equity of 13.06% and a net margin of 3.07%.The company’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.66 earnings per share. Carter’s has set its Q2 2026 guidance at 0.020-0.060 EPS. As a group, research analysts predict that Carter’s will post 3.09 EPS for the current fiscal year.

Carter’s Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 26th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Tuesday, May 26th. Carter’s’s payout ratio is presently 40.32%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. AQR Capital Management LLC boosted its holdings in shares of Carter’s by 113.7% during the 2nd quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock valued at $77,267,000 after acquiring an additional 1,364,698 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Carter’s by 36.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker’s stock worth $63,121,000 after acquiring an additional 472,786 shares during the last quarter. Morgan Stanley grew its position in Carter’s by 15.7% during the 4th quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock worth $57,143,000 after acquiring an additional 239,469 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Carter’s by 5.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,597,901 shares of the textile maker’s stock worth $51,820,000 after purchasing an additional 82,498 shares in the last quarter. Finally, UBS Group AG increased its holdings in Carter’s by 29.6% in the 4th quarter. UBS Group AG now owns 1,349,777 shares of the textile maker’s stock worth $43,773,000 after purchasing an additional 308,347 shares in the last quarter.

About Carter’s

Carter’s, Inc (NYSE: CRI) is a leading designer and marketer of infant and young children’s apparel in North America. Headquartered in Atlanta, Georgia, the company’s core business focuses on creating clothing and accessories for babies and children, including bodysuits, sleepwear, layette, outerwear and accessories that blend comfort, safety and style. Carter’s flagship brand is complemented by its OshKosh B’gosh line, which offers heritage-inspired designs and durable fabrics for toddlers and young kids.

The company distributes its products through a diversified platform that includes wholesale partnerships with major department stores and mass merchandisers, direct‐to‐consumer e-commerce sites, and an extensive network of company-operated retail stores.