Morgan Stanley Cuts KinderCare Learning Companies (NYSE:KLC) Price Target to $2.00

Key Points

• Morgan Stanley lowered KinderCare Learning Companies’ price target to $2.00 from $2.50 and maintained an “underweight” rating, implying 13.61% downside from the stock’s $2.31 price.
• Analyst sentiment remains cautious: KLC has a consensus “Reduce” rating and an average price target of $4.06, based on one Buy, five Hold, and four Sell ratings.
• KinderCare’s latest quarterly results missed expectations, with EPS of $0.08 versus $0.10 expected and revenue of $697.52 million; revenue declined 0.4% year over year and the company reported a negative net margin of 17.23%.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) had its price target lowered by analysts at Morgan Stanley from $2.50 to $2.00 in a report released on Wednesday, Benzinga reports. The brokerage presently has an "underweight" rating on the stock. Morgan Stanley's price objective would suggest a potential downside of 13.61% from the stock's current price.

A number of other brokerages have also recently weighed in on KLC. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $6.00 price objective on shares of KinderCare Learning Companies in a research note on Friday, August 14th. UBS Group decreased their price target on shares of KinderCare Learning Companies from $5.00 to $4.50 and set a "neutral" rating for the company 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 report on Monday, August 17th. Wall Street Zen raised shares of KinderCare Learning Companies from a "strong sell" rating to a "sell" rating in a research report on Tuesday, September 15th. Finally, JPMorgan Chase & Co. lowered shares of KinderCare Learning Companies from a "neutral" rating to an "underweight" rating 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. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $4.06.

KinderCare Learning Companies Stock Performance

Shares of KLC stock opened at $2.31 on Wednesday. The firm has a market cap of $274.37 million, a price-to-earnings ratio of -0.58 and a beta of 3.78. KinderCare Learning Companies has a 52-week low of $1.75 and a 52-week high of $7.10. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 1.97. The company's 50 day moving average is $3.68 and its 200 day moving average is $3.62.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported $0.08 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.02). The company had revenue of $697.52 million for 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% on a year-over-year basis. During the same quarter 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 anticipate that KinderCare Learning Companies will post 0.1 EPS for the current fiscal year.

Hedge Funds Weigh In On KinderCare Learning Companies

A number of institutional investors have recently modified their holdings of KLC. Silver Point Capital L.P. purchased a new stake in shares of KinderCare Learning Companies during the 2nd quarter worth about $21,696,250. BlackRock Inc. purchased a new position in shares of KinderCare Learning Companies in the second quarter valued at approximately $9,413,000. First Trust Advisors LP boosted its stake in shares of KinderCare Learning Companies by 146.0% in the first 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. GSA Capital Partners LLP acquired a new stake in shares of KinderCare Learning Companies in the second quarter worth approximately $1,886,000. Finally, Villanova Investment Management Co LLC increased its position in shares of KinderCare Learning Companies by 62.3% during the fourth quarter. Villanova Investment Management Co LLC now owns 407,963 shares of the company's stock worth $1,762,000 after purchasing an additional 156,663 shares in the last quarter.

About KinderCare Learning Companies

KinderCare Learning Companies, Inc NYSE: KLC is a provider of early childhood education and child care services in the United States. The company operates center-based programs for infants, toddlers, preschoolers and pre-kindergarten children, with an emphasis on early learning, development and school readiness.

Through its KinderCare Learning Centers and other programs, the company also provides before- and after-school care, summer camps and school-age enrichment services. Its offerings are available to families directly and through employer-supported child care arrangements, including services marketed to businesses seeking child care benefits for employees.

Founded in 1969, KinderCare serves communities across the United States through a network of early learning centers and school-based programs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.