Carter’s (NYSE: CRI) has seen its stock rating upgraded from “strong sell” to “hold” by analysts at Zacks Research, according to a report released on October 31, 2023. This change reflects a shift in sentiment, although other financial institutions have provided contrasting evaluations regarding the company’s performance.
In a separate research note, Weiss Ratings reiterated a “sell (d+)” rating for Carter’s. Additionally, Barclays increased its price target for the company from $23.00 to $26.00 while maintaining an “underweight” rating on October 28, 2023. Meanwhile, UBS Group raised its price target from $26.00 to $33.00 and assigned the stock a “neutral” rating on the same day.
On December 11, 2023, Goldman Sachs Group initiated coverage on Carter’s, giving it a “sell” rating with a target price of $26.00. Similarly, Wells Fargo & Company raised its target price from $22.00 to $25.00 while also maintaining an “underweight” rating. The consensus among financial analysts indicates mixed views, with three rating the stock as a hold and four as a sell.
As of October 31, 2023, Carter’s shares have experienced a decline of 1.8%, opening at $32.10. The company’s stock has fluctuated significantly over the past year, with a low of $23.38 and a high of $56.89. With a market capitalization of $1.17 billion, the company presents a price-to-earnings ratio of 12.99 and a beta of 1.08. The 50-day moving average stands at $31.30, while the 200-day average is $30.00.
Carter’s latest earnings report, released on October 27, 2023, showed earnings per share (EPS) of $0.74, falling short of the consensus estimate of $0.78 by $0.04. The company reported revenues of $757.84 million, slightly below the anticipated $760.11 million. The comparison to the previous year reveals a 0.1% decrease in revenue, with last year’s EPS recorded at $1.64. Analysts project a total EPS of $5.15 for the current fiscal year.
Institutional investors have been active in adjusting their 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. also raised its stake by 1.1%, acquiring an additional 46,560 shares, bringing its total to 4,226,804 shares worth $119.3 million.
In a notable move, AQR Capital Management LLC expanded its position in Carter’s by 113.7% in the second quarter, now holding 2,564,457 shares valued at around $77.3 million. Millennium Management LLC dramatically increased its stake by 14,270.6%, acquiring an additional 1,620,140 shares, now totaling 1,631,493 shares valued at approximately $66.7 million. Additionally, American Century Companies Inc. raised its stake by 6.9% in the third quarter.
Carter’s, a leading player in the young children’s apparel market, operates through segments including US retail, US wholesale, and international sales. The company continues to navigate a challenging retail environment, balancing investor expectations with market realities. As analysts weigh in with varying ratings, the future trajectory of Carter’s stock remains to be seen.
