Carter’s (NYSE:CRI) Lowered to Hold Rating by Zacks Research

Zacks Research downgraded shares of Carter’s (NYSE:CRI) from a strong-buy rating to a hold rating in a report published on Monday,Zacks.com reports.

CRI has been the subject of a number of other research reports. Needham & Company LLC began coverage on Carter’s in a report on Thursday, March 26th. They set a “hold” rating for the company. UBS Group upped their target price on Carter’s from $40.00 to $41.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Weiss Ratings cut Carter’s from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Monness Crespi & Hardt upped their target price on Carter’s from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Finally, Wall Street Zen raised Carter’s from a “hold” rating to a “buy” rating in a report on Saturday, April 18th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $39.67.

Carter’s Price Performance

Carter’s stock opened at $38.37 on Monday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.72 and a current ratio of 2.80. Carter’s has a 52 week low of $23.38 and a 52 week high of $44.44. The stock has a market capitalization of $1.41 billion, a P/E ratio of 15.47 and a beta of 0.86. The stock has a fifty day moving average of $35.84 and a 200-day moving average of $35.02.

Carter’s (NYSE:CRI) last posted its quarterly earnings results on Wednesday, May 6th. The textile maker reported $0.39 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.26. Carter’s had a return on equity of 13.06% and a net margin of 3.07%.The company had revenue of $681.11 million during the quarter, compared to analysts’ expectations of $660.59 million. During the same quarter in the previous year, the firm earned $0.66 EPS. Carter’s’s revenue was up 8.1% on a year-over-year basis. Carter’s has set its Q2 2026 guidance at 0.020-0.060 EPS. On average, sell-side analysts expect that Carter’s will post 3.06 earnings per share for the current fiscal year.

Carter’s Dividend Announcement

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

Hedge Funds Weigh In On Carter’s

A number of institutional investors and hedge funds have recently bought and sold shares of the company. RWWM Inc. increased its holdings in Carter’s by 44.8% in the 3rd quarter. RWWM Inc. now owns 5,900,170 shares of the textile maker’s stock worth $166,503,000 after purchasing an additional 1,824,379 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Carter’s by 1.1% in the third quarter. Vanguard Group Inc. now owns 4,226,804 shares of the textile maker’s stock valued at $119,280,000 after buying an additional 46,560 shares during the period. AQR Capital Management LLC increased its stake in shares of Carter’s by 113.7% in the second quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock valued at $77,267,000 after buying an additional 1,364,698 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Carter’s by 36.6% in the first quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker’s stock valued at $63,121,000 after buying an additional 472,786 shares during the period. Finally, Morgan Stanley increased its stake in shares of Carter’s by 15.7% in the fourth quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock valued at $57,143,000 after buying an additional 239,469 shares during the period.

Carter’s Company Profile

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.