Carter's, Inc. (NYSE:CRI) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Carter’s received a consensus “Hold” rating from nine analysts: four buys, three holds and two sells. The average 12-month price target is $41.17, modestly above the reported share price of $37.82.
• Several institutional investors increased their positions, including AQR Capital Management, Rubric Capital Management and Dimensional Fund Advisors, while analyst opinions remained mixed.
• Carter’s beat quarterly expectations with adjusted EPS of $0.39 versus a $0.13 consensus estimate and revenue of $681.11 million. The company also maintains a quarterly dividend of $0.25, equivalent to a 2.6% annual yield.

Carter's, Inc. (NYSE:CRI - Get Free Report) has been assigned a consensus rating of "Hold" from the nine research firms that are covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $41.1667.

Several analysts have commented on the stock. Weiss Ratings lowered shares of Carter's from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Citigroup reiterated a "buy" rating on shares of Carter's in a research note on Tuesday, July 21st. Zacks Research cut shares of Carter's from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. The Goldman Sachs Group upgraded shares of Carter's from a "neutral" rating to a "buy" rating and set a $38.00 target price for the company in a research note on Thursday, April 9th. Finally, Wall Street Zen downgraded Carter's from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC raised its stake in Carter's by 113.7% in the 2nd quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker's stock worth $77,267,000 after acquiring an additional 1,364,698 shares during the last quarter. Rubric Capital Management LP increased its holdings in shares of Carter's by 121.5% in the first quarter. Rubric Capital Management LP now owns 1,018,853 shares of the textile maker's stock valued at $36,434,000 after purchasing an additional 558,853 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Carter's by 36.6% in the first quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker's stock worth $63,121,000 after purchasing an additional 472,786 shares during the last quarter. Quantinno Capital Management LP raised its stake in shares of Carter's by 1,679.7% in the second quarter. Quantinno Capital Management LP now owns 370,791 shares of the textile maker's stock worth $11,172,000 after purchasing an additional 349,957 shares during the last quarter. Finally, Millennium Management LLC lifted its holdings in shares of Carter's by 104.3% during the third quarter. Millennium Management LLC now owns 661,920 shares of the textile maker's stock worth $18,679,000 after purchasing an additional 337,880 shares during the period.

Carter's Stock Down 2.3%

Shares of NYSE:CRI traded down $0.88 during trading hours on Thursday, hitting $37.82. The company's stock had a trading volume of 99,787 shares, compared to its average volume of 1,119,982. The firm's fifty day moving average price is $39.82 and its 200 day moving average price is $37.60. Carter's has a 52 week low of $23.38 and a 52 week high of $44.44. The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of 15.25 and a beta of 0.86. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.80 and a quick ratio of 1.72.

Carter's (NYSE:CRI - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The textile maker reported $0.39 EPS for the quarter, topping the consensus estimate of $0.13 by $0.26. Carter's had a return on equity of 13.06% and a net margin of 3.07%.The firm had revenue of $681.11 million during the quarter, compared to analyst estimates of $660.59 million. During the same period in the previous year, the company posted $0.66 EPS. The business's revenue for the quarter was up 8.1% compared to the same quarter last year. Carter's has set its Q2 2026 guidance at 0.020-0.060 EPS. As a group, research analysts expect that Carter's will post 3.09 EPS for the current year.

Carter's Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Tuesday, May 26th were paid a $0.25 dividend. The ex-dividend date was Tuesday, May 26th. This represents a $1.00 dividend on an annualized basis and a yield of 2.6%. Carter's's dividend payout ratio (DPR) is 40.32%.

About Carter's

Carter's, Inc NYSE: CRI is a leading designer and marketer of infant and young children's apparel in North America. Headquartered in Atlanta, Georgia, the company's core business focuses on creating clothing and accessories for babies and children, including bodysuits, sleepwear, layette, outerwear and accessories that blend comfort, safety and style. Carter's flagship brand is complemented by its OshKosh B'gosh line, which offers heritage-inspired designs and durable fabrics for toddlers and young kids.

The company distributes its products through a diversified platform that includes wholesale partnerships with major department stores and mass merchandisers, direct‐to‐consumer e-commerce sites, and an extensive network of company-operated retail stores.

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