KinderCare Learning Companies (NYSE:KLC) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded KinderCare Learning Companies to “strong sell” from “hold,” adding to largely negative analyst sentiment. The stock has a consensus “reduce” rating and a $3.77 price target.
• KinderCare shares opened at $1.80, near their 52-week low of $1.75, and remain below both their 50-day ($2.63) and 200-day ($3.54) moving averages.
• The company’s latest quarter fell short of expectations, reporting $0.08 in adjusted EPS versus a $0.10 consensus estimate and $697.52 million in revenue. Revenue declined 0.4% year over year, while the company posted a negative 17.23% net margin.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday, Zacks reports.

Other equities research analysts have also recently issued research reports about the stock. Morgan Stanley cut their price objective on shares of KinderCare Learning Companies from $2.50 to $2.00 and set an "underweight" rating for the company in a research note on Wednesday, September 23rd. UBS Group decreased their target price on shares of KinderCare Learning Companies from $5.00 to $4.50 and set a "neutral" rating on the stock in a research report on Friday, August 14th. Weiss Ratings cut shares of KinderCare Learning Companies from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, August 17th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $6.00 price target on shares of KinderCare Learning Companies in a research note on Friday, August 14th. Finally, Wall Street Zen upgraded shares of KinderCare Learning Companies from a "strong sell" rating to a "sell" rating in a research report on Tuesday, September 15th. One analyst has rated the stock with a Buy rating, five have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $3.77.

KinderCare Learning Companies Stock Performance

NYSE:KLC opened at $1.80 on Tuesday. The business has a 50 day moving average of $2.63 and a 200 day moving average of $3.54. The company has a market capitalization of $213.93 million, a price-to-earnings ratio of 4.97 and a beta of 3.86. KinderCare Learning Companies has a 1-year low of $1.75 and a 1-year high of $6.27. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.75 and a quick ratio of 0.75.

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

Institutional Trading of KinderCare Learning Companies

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC bought a new stake in KinderCare Learning Companies in the 2nd quarter worth $30,000. Caitong International Asset Management Co. Ltd increased its position in shares of KinderCare Learning Companies by 434.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 7,829 shares of the company's stock valued at $34,000 after acquiring an additional 6,365 shares during the period. Pallas Capital Advisors LLC purchased a new position in shares of KinderCare Learning Companies in the second quarter valued at about $45,000. Dimensional Fund Advisors LP purchased a new position in shares of KinderCare Learning Companies in the first quarter valued at about $25,000. Finally, Corient Private Wealth LP bought a new position in shares of KinderCare Learning Companies during the second quarter valued at about $61,000.

KinderCare Learning Companies Company Profile

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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