Carter’s (NYSE: CRI) received a significant upgrade from Zacks Research, shifting from a “strong sell” rating to a “hold” rating, according to a report released on October 14, 2023. This change reflects a reassessment of the company’s stock performance amid ongoing market volatility.
Other financial institutions have recently weighed in on Carter’s stock, providing mixed assessments. Weiss Ratings reiterated a “sell (d+)” rating on October 14, while Barclays raised its price target for Carter’s from $23.00 to $26.00, maintaining an “underweight” rating. Similarly, UBS Group increased its target from $26.00 to $33.00 and assigned a “neutral” rating on the same day. The Goldman Sachs Group began coverage on Carter’s on December 11, issuing a “sell” rating with a price objective of $26.00. Wells Fargo & Company also adjusted its target price from $22.00 to $25.00, sustaining an “underweight” rating.
Currently, three analysts have rated Carter’s stock as a “hold,” while four have given it a “sell” rating. According to data from MarketBeat.com, Carter’s holds an average rating of “strong sell” with a consensus target price of $28.80.
Current Stock Performance and Earnings Report
On October 27, 2023, Carter’s reported earnings that fell short of analysts’ expectations. The company posted earnings per share (EPS) of $0.74 for the quarter, missing the consensus estimate of $0.78 by $0.04. The textile manufacturer recorded revenue of $757.84 million, slightly below the expected $760.11 million. In comparison, during the same quarter last year, Carter’s had earnings of $1.64 EPS, indicating a decline in revenue of 0.1% year-over-year.
Carter’s stock opened at $32.10 on the day of the report, reflecting a decline of 1.8%. Over the past year, the stock has fluctuated between a low of $23.38 and a high of $56.89. With a market capitalization of $1.17 billion, Carter’s has a price-to-earnings (PE) ratio of 12.99 and a beta of 1.08. The company’s 50-day moving average price stands at $31.30, while the 200-day moving average is $30.00. Financial metrics also reveal a debt-to-equity ratio of 0.58, a quick ratio of 0.95, and a current ratio of 2.26.
Institutional Investors’ Activity
Recent transactions by institutional investors indicate a dynamic shift in ownership stakes in Carter’s. RWWM Inc. increased its holdings by 44.8% in the third quarter, now owning 5,900,170 shares valued at approximately $166.5 million. Vanguard Group Inc. raised its stake by 1.1%, acquiring an additional 46,560 shares, bringing its total to 4,226,804 shares valued at $119.3 million.
AQR Capital Management LLC also expanded its position by 113.7% in the second quarter, now holding 2,564,457 shares worth about $77.3 million. Millennium Management LLC dramatically increased its stake by 14,270.6% in the first quarter, owning 1,631,493 shares valued at $66.7 million after acquiring an additional 1,620,140 shares. American Century Companies Inc. raised its stake by 6.9% in the third quarter, owning 1,349,872 shares worth $38.1 million.
As the market continues to respond to Carter’s performance and strategic decisions, analysts and investors alike will be closely monitoring future developments.
