Carter's, Inc. (NYSE:CRI) Receives Consensus Recommendation of "Strong Sell" from Analysts

Key Points

• Carter's, Inc. has received a consensus recommendation of "Strong Sell" from six analysts, with four rating it a sell and two as a hold.
• The average one-year target price for Carter's stock is $30.25, reflecting concerns about its performance and outlook.
• The company recently reported earnings of $0.17 EPS, significantly missing estimates, and announced a quarterly dividend cut, now at $0.25 per share.

Carter's, Inc. (NYSE:CRI - Get Free Report) has been assigned an average rating of "Strong Sell" from the six analysts that are currently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell recommendation and two have assigned a hold recommendation to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $30.25.

Several brokerages recently commented on CRI. Zacks Research lowered shares of Carter's from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 13th. Barclays cut their price target on shares of Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a report on Tuesday, July 29th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Carter's in a report on Saturday, September 27th. Finally, UBS Group dropped their target price on shares of Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a report on Monday, July 28th.

Institutional Investors Weigh In On Carter's

A number of large investors have recently modified their holdings of CRI. Allworth Financial LP grew its holdings in shares of Carter's by 313.1% in the first quarter. Allworth Financial LP now owns 723 shares of the textile maker's stock valued at $28,000 after purchasing an additional 548 shares during the period. Signaturefd LLC grew its holdings in shares of Carter's by 269.0% in the second quarter. Signaturefd LLC now owns 1,000 shares of the textile maker's stock valued at $30,000 after purchasing an additional 729 shares during the period. Parallel Advisors LLC lifted its position in Carter's by 80.9% in the first quarter. Parallel Advisors LLC now owns 1,062 shares of the textile maker's stock valued at $43,000 after buying an additional 475 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in Carter's by 202.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,486 shares of the textile maker's stock valued at $45,000 after buying an additional 995 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new position in Carter's in the first quarter valued at about $58,000.

Carter's Stock Performance

Shares of CRI traded up $0.32 during trading hours on Friday, hitting $29.92. The stock had a trading volume of 1,231,487 shares, compared to its average volume of 1,279,447. The firm has a market capitalization of $1.09 billion, a price-to-earnings ratio of 7.94 and a beta of 1.07. The firm has a 50-day moving average price of $27.68 and a 200 day moving average price of $31.90. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.03 and a current ratio of 2.20. Carter's has a fifty-two week low of $23.38 and a fifty-two week high of $68.69.

Carter's (NYSE:CRI - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The textile maker reported $0.17 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.26). The company had revenue of $585.31 million during the quarter, compared to analysts' expectations of $563.24 million. Carter's had a return on equity of 20.68% and a net margin of 4.79%.Carter's's revenue was up 3.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.76 EPS. As a group, research analysts anticipate that Carter's will post 5.15 EPS for the current year.

Carter's Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 12th. Stockholders of record on Tuesday, August 26th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Tuesday, August 26th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.3%. Carter's's dividend payout ratio is presently 26.53%.

Carter's Company Profile

Carter's, Inc engages in the business of brand marketing of young children's apparel. It operates through the following segments: the United States (US) Retail, US Wholesale, and International. The US Retail segment includes selling products through retail stores and ecommerce websites. The US Wholesale segment focuses on wholesale partners.

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