KinderCare Learning Companies (NYSE:KLC) Stock Bumped Down to Strong Sell by Wall Street Zen

Key Points

• Wall Street Zen downgraded KinderCare Learning Companies to “strong sell” from “sell.” Across analysts, the consensus is “Reduce,” with an average price target of $3.84.
• Other firms have cut price targets, including UBS to $4.50, Goldman Sachs to $3.40 and Morgan Stanley to $2.00; ratings range from outperform to underweight.
• KinderCare reported a quarterly loss of $0.03 per share and revenue of $665.34 million, below analyst expectations; revenue fell 1.7% year over year. Shares opened at $1.33, near their 52-week low of $1.29.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Saturday, Wall Street Zen reports.

Several other research firms have also issued reports on KLC. UBS Group dropped 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 report on Friday, August 14th. The Goldman Sachs Group dropped their price objective on KinderCare Learning Companies from $3.90 to $3.40 and set a "neutral" rating on the stock in a research note on Friday. BMO Capital Markets cut their target price on KinderCare Learning Companies from $5.00 to $4.00 and set an "outperform" rating on the stock in a research report on Monday, October 5th. Morgan Stanley decreased their target price on 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. Finally, JPMorgan Chase & Co. downgraded KinderCare Learning Companies from a "neutral" rating to an "underweight" rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, KinderCare Learning Companies has a consensus rating of "Reduce" and an average target price of $3.84.

KinderCare Learning Companies Stock Performance

NYSE:KLC opened at $1.33 on Friday. The company has a market capitalization of $158.22 million, a PE ratio of -0.28 and a beta of 3.67. The company has a 50 day simple moving average of $2.05 and a two-hundred day simple moving average of $3.38. 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 has a fifty-two week low of $1.29 and a fifty-two week high of $5.62.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) last issued its quarterly earnings results on Thursday, November 12th. The company reported ($0.03) earnings per share (EPS) for the quarter. KinderCare Learning Companies had a positive return on equity of 4.49% and a negative net margin of 20.59%. The firm had revenue of $665.34 million during the quarter, compared to analyst estimates of $668.77 million. During the same quarter last year, the firm posted $0.13 EPS. The firm's revenue for the quarter was down 1.7% on a year-over-year basis. KinderCare Learning Companies has set its FY 2026 guidance at 0.020-0.040 EPS. Research analysts anticipate that KinderCare Learning Companies will post 0.10 earnings per share for the current year.

Hedge Funds Weigh In On KinderCare Learning Companies

Several institutional investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC acquired a new stake in shares of KinderCare Learning Companies in the 2nd quarter valued at about $30,000. Pallas Capital Advisors LLC acquired a new position in KinderCare Learning Companies during the 2nd quarter worth approximately $45,000. Dimensional Fund Advisors LP acquired a new position in KinderCare Learning Companies during the 1st quarter worth approximately $25,000. Corient Private Wealth LP bought a new position in KinderCare Learning Companies in the second quarter worth approximately $61,000. Finally, Sequoia Financial Advisors LLC bought a new position in KinderCare Learning Companies in the second quarter worth approximately $67,000.

About KinderCare Learning Companies

KinderCare Learning Companies provides early childhood education and child care in the United States. Its services include full-day care and preschool programs for infants, toddlers and school-age children, with curricula designed to support children's learning and development. The company operates through brands including KinderCare Learning Centers and Champions, which provides before- and after-school programs. It also offers child care solutions for employers, including on-site centers and backup care.

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