Wall Street Zen Upgrades KinderCare Learning Companies (NYSE:KLC) to "Sell"

Key Points

• Wall Street Zen upgraded KinderCare Learning Companies from “strong sell” to “sell,” but the broader analyst consensus remains “Reduce,” with a $4.13 target price.
• KLC opened at $2.60, well below its 50-day moving average of $4.43. The stock has traded between $1.75 and $7.68 over the past year and carries a high beta of 4.00.
• The company’s latest quarter missed earnings expectations, reporting $0.08 per share versus the $0.10 consensus, while revenue declined 0.4% year over year to $697.52 million.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research note issued to investors on Sunday.

KLC has been the subject of several other reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $6.00 target price on shares of KinderCare Learning Companies in a research note on Friday, August 14th. JPMorgan Chase & Co. lowered KinderCare Learning Companies from a "neutral" rating to an "underweight" rating in a research note on Friday, August 14th. Robert W. Baird upped their target price on KinderCare Learning Companies from $1.50 to $4.00 and gave the company a "neutral" rating in a research report on Friday, May 15th. BMO Capital Markets increased their target price on KinderCare Learning Companies from $4.00 to $6.00 and gave the company an "outperform" rating in a research note on Monday, May 18th. Finally, Barclays lifted their price target on shares of KinderCare Learning Companies from $2.00 to $3.00 and gave the stock an "underweight" rating in a research note on Monday, May 18th. One investment 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, the company presently has a consensus rating of "Reduce" and a consensus target price of $4.13.

KinderCare Learning Companies Stock Up 2.8%

KLC stock opened at $2.60 on Friday. The company has a fifty day moving average of $4.43 and a 200-day moving average of $3.82. KinderCare Learning Companies has a one year low of $1.75 and a one year high of $7.68. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a market capitalization of $308.15 million, a PE ratio of -0.65 and a beta of 4.00.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) last released its quarterly 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). KinderCare Learning Companies had a negative net margin of 17.23% and a positive return on equity of 6.65%. The firm had revenue of $697.52 million for the quarter, compared to analyst estimates of $697.94 million. During the same period in the previous year, the business posted $0.22 earnings per share. KinderCare Learning Companies's revenue for the quarter was down .4% on a year-over-year basis. KinderCare Learning Companies has set its FY 2026 guidance at 0.050-0.150 EPS. As a group, analysts expect that KinderCare Learning Companies will post 0.1 EPS for the current year.

Institutional Investors Weigh In On KinderCare Learning Companies

A number of institutional investors and hedge funds have recently modified their holdings of the stock. GSA Capital Partners LLP purchased a new stake in shares of KinderCare Learning Companies in the 2nd quarter valued at approximately $1,886,000. Silver Point Capital L.P. acquired a new position in KinderCare Learning Companies in the 2nd quarter worth approximately $21,696,250. First Trust Advisors LP grew 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 purchasing an additional 345,948 shares in the last quarter. Militia Capital Management LLC purchased a new position in KinderCare Learning Companies during the 1st quarter worth approximately $421,000. Finally, Villanova Investment Management Co LLC raised its stake in KinderCare Learning Companies by 62.3% during the 4th quarter. Villanova Investment Management Co LLC now owns 407,963 shares of the company's stock valued at $1,762,000 after purchasing an additional 156,663 shares during the period.

About KinderCare Learning Companies

KinderCare Learning Companies Inc is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc is based in PORTLAND, Ore.

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