BMO Capital Markets Cuts KinderCare Learning Companies (NYSE:KLC) Price Target to $4.00

Key Points

• BMO Capital Markets cut KinderCare’s price target from $5.00 to $4.00 while maintaining an “outperform” rating, implying nearly 118% upside from the stock’s $1.83 price.
• Analyst sentiment is broadly cautious: KLC has a consensus “Reduce” rating, with one Buy, five Hold and four Sell ratings and an average price target of $3.77.
• KinderCare missed quarterly earnings expectations, reporting $0.08 in EPS versus the $0.10 estimate, while revenue declined 0.4% year over year to $697.52 million.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) had its price objective dropped by BMO Capital Markets from $5.00 to $4.00 in a note issued to investors on Monday, Benzinga reports. The firm presently has an "outperform" rating on the stock. BMO Capital Markets' price objective indicates a potential upside of 117.98% from the company's current price.

Other analysts also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $6.00 price objective on shares of KinderCare Learning Companies in a research report on Friday, August 14th. Weiss Ratings lowered KinderCare Learning Companies from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, August 17th. JPMorgan Chase & Co. cut KinderCare Learning Companies from a "neutral" rating to an "underweight" rating in a research note on Friday, August 14th. Wall Street Zen raised KinderCare Learning Companies from a "strong sell" rating to a "sell" rating in a research report on Tuesday, September 15th. Finally, UBS Group reduced their price objective on KinderCare Learning Companies from $5.00 to $4.50 and set a "neutral" rating for the company 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's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $3.77.

KinderCare Learning Companies Price Performance

KLC stock traded down $0.03 during trading on Monday, hitting $1.83. The stock had a trading volume of 396,673 shares, compared to its average volume of 988,575. The company's 50 day moving average price is $3.19 and its two-hundred day moving average price is $3.56. KinderCare Learning Companies has a 1-year low of $1.75 and a 1-year high of $6.88. The stock has a market cap of $217.48 million, a price-to-earnings ratio of -0.46 and a beta of 3.86. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.75 and a current ratio of 0.75.

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

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in KLC. Silver Point Capital L.P. bought a new position in shares of KinderCare Learning Companies in the second quarter valued at approximately $21,696,250. BlackRock Inc. acquired a new position in KinderCare Learning Companies in the 2nd quarter valued at $9,413,000. GSA Capital Partners LLP bought a new position in KinderCare Learning Companies in the 2nd quarter worth $1,886,000. Villanova Investment Management Co LLC raised its holdings in KinderCare Learning Companies by 62.3% in the 4th quarter. Villanova Investment Management Co LLC now owns 407,963 shares of the company's stock worth $1,762,000 after acquiring an additional 156,663 shares during the period. Finally, First Trust Advisors LP lifted its position in KinderCare Learning Companies by 146.0% during the 1st 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.

About KinderCare Learning Companies

KinderCare Learning Companies, Inc is a provider of early childhood education and care services in the United States. The company operates learning centers that serve infants, toddlers, preschoolers and school-age children, with programs designed to support children's cognitive, social, emotional and physical development.

Its services include full- and part-time child care, preschool education, pre-kindergarten programs, before- and after-school care, and seasonal programs such as summer camps.

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