Morgan Stanley Cuts KinderCare Learning Companies (NYSE:KLC) Price Target to $2.00

KinderCare Learning Companies (NYSE:KLC) had its price target lowered by analysts at Morgan Stanley from $2.50 to $2.00 in a report released on Wednesday, Benzinga reports. The brokerage presently has an “underweight” rating on the stock. Morgan Stanley’s price objective would suggest a potential downside of 13.61% from the stock’s current price.

A number of other brokerages have also recently weighed in on KLC. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $6.00 price objective on shares of KinderCare Learning Companies in a research note on Friday, August 14th. UBS Group decreased their price target on shares of KinderCare Learning Companies from $5.00 to $4.50 and set a “neutral” rating for the company in a research report on Friday, August 14th. Weiss Ratings cut shares of KinderCare Learning Companies from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, August 17th. Wall Street Zen raised shares of KinderCare Learning Companies from a “strong sell” rating to a “sell” rating in a research report on Tuesday, September 15th. Finally, JPMorgan Chase & Co. lowered shares of KinderCare Learning Companies from a “neutral” rating to an “underweight” rating in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $4.06.

KinderCare Learning Companies Stock Performance

Shares of KLC stock opened at $2.31 on Wednesday. The firm has a market cap of $274.37 million, a price-to-earnings ratio of -0.58 and a beta of 3.78. KinderCare Learning Companies has a 52-week low of $1.75 and a 52-week high of $7.10. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 1.97. The company’s 50 day moving average is $3.68 and its 200 day moving average is $3.62.

KinderCare Learning Companies (NYSE:KLC) last posted its earnings results on Thursday, August 13th. The company reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.02). The company had revenue of $697.52 million for the quarter, compared to analysts’ expectations of $697.94 million. KinderCare Learning Companies had a positive return on equity of 6.65% and a negative net margin of 17.23%.The firm’s quarterly revenue was down .4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.22 EPS. KinderCare Learning Companies has set its FY 2026 guidance at 0.050-0.150 EPS. On average, sell-side analysts anticipate that KinderCare Learning Companies will post 0.1 EPS for the current fiscal year.

Hedge Funds Weigh In On KinderCare Learning Companies

A number of institutional investors have recently modified their holdings of KLC. Silver Point Capital L.P. purchased a new stake in shares of KinderCare Learning Companies during the 2nd quarter worth about $21,696,250. BlackRock Inc. purchased a new position in shares of KinderCare Learning Companies in the second quarter valued at approximately $9,413,000. First Trust Advisors LP boosted its stake in shares of KinderCare Learning Companies by 146.0% in the first quarter. First Trust Advisors LP now owns 582,830 shares of the company’s stock worth $1,282,000 after acquiring an additional 345,948 shares during the last quarter. GSA Capital Partners LLP acquired a new stake in shares of KinderCare Learning Companies in the second quarter worth approximately $1,886,000. Finally, Villanova Investment Management Co LLC increased its position in shares of KinderCare Learning Companies by 62.3% during the fourth quarter. Villanova Investment Management Co LLC now owns 407,963 shares of the company’s stock worth $1,762,000 after purchasing an additional 156,663 shares in the last quarter.

About KinderCare Learning Companies

KinderCare Learning Companies, Inc (NYSE: KLC) is a provider of early childhood education and child care services in the United States. The company operates center-based programs for infants, toddlers, preschoolers and pre-kindergarten children, with an emphasis on early learning, development and school readiness.

Through its KinderCare Learning Centers and other programs, the company also provides before- and after-school care, summer camps and school-age enrichment services. Its offerings are available to families directly and through employer-supported child care arrangements, including services marketed to businesses seeking child care benefits for employees.

Founded in 1969, KinderCare serves communities across the United States through a network of early learning centers and school-based programs.