Carter’s (NYSE:CRI) has seen a significant revision in its stock rating, moving from a “strong sell” to a “hold,” according to a report released by Zacks Research on October 14, 2023. This change reflects a broader reassessment among investment analysts regarding the company’s financial outlook and market position.
Several other research firms have also provided updates on Carter’s stock. On the same day, Weiss Ratings maintained a “sell (d+)” rating. Meanwhile, Barclays adjusted their price target for Carter’s from $23.00 to $26.00, while assigning an “underweight” rating. UBS Group was more optimistic, raising their price target from $26.00 to $33.00 and giving the stock a “neutral” rating.
On December 11, 2023, the Goldman Sachs Group initiated coverage on Carter’s with a “sell” rating and a price objective set at $26.00. In a similar vein, Wells Fargo increased their target price from $22.00 to $25.00, maintaining an “underweight” rating. Currently, three analysts have assigned a “hold” rating, while four analysts opt for a “sell” designation. Data from MarketBeat.com indicates that Carter’s has an average rating of “strong sell” and a consensus target price of $28.80.
Recent Performance and Financial Metrics
As of October 27, 2023, Carter’s stock opened at $32.10, reflecting a decline of 1.8% on that day. The company’s stock has experienced fluctuations over the past year, with a low of $23.38 and a high of $56.89. Currently, Carter’s holds a market capitalization of $1.17 billion, a price-to-earnings (P/E) ratio of 12.99, and a beta of 1.08. The 50-day moving average price stands at $31.30, while the 200-day moving average is $30.00.
In their latest earnings report, Carter’s announced earnings per share (EPS) of $0.74 for the quarter, which fell short of the consensus estimate of $0.78 by $0.04. The company reported a revenue of $757.84 million, missing analyst expectations of $760.11 million. Comparatively, during the same quarter last year, Carter’s had an EPS of $1.64, marking a 0.1% decline in revenue year-over-year. Analysts project that Carter’s will achieve an EPS of 5.15 for the current fiscal year.
Institutional Investor Activity
Recent activity among institutional investors suggests a mixed sentiment towards Carter’s. RWWM Inc. significantly increased its holdings by 44.8% during the third quarter, now owning 5,900,170 shares valued at $166.5 million. Vanguard Group Inc. also raised its stake by 1.1%, bringing its total to 4,226,804 shares valued at $119.28 million.
AQR Capital Management LLC expanded its position by 113.7% in the second quarter, now owning 2,564,457 shares valued at $77.27 million. Millennium Management LLC made a notable increase, raising its stake by an astonishing 14,270.6% in the first quarter, acquiring 1,631,493 shares worth $66.73 million. Lastly, American Century Companies Inc. increased its ownership by 6.9% during the third quarter, holding 1,349,872 shares valued at $38.09 million.
As Carter’s navigates the complexities of the current market landscape, analysts and investors alike will be closely monitoring these developments for future insights into the company’s performance and strategic direction.
