UBS Group Has Lowered Expectations for Carter's (NYSE:CRI) Stock Price

Key Points

• UBS Group has reduced its price target for Carter's (NYSE: CRI) from $32.00 to $26.00, indicating a potential downside of 2.13% from the current stock price and maintaining a "neutral" rating.
• Carter's reported a net margin of 4.79% and earnings per share (EPS) of $0.17 for the last quarter, missing consensus estimates by $0.26.
• Recent changes in institutional holdings reflect increased investment activity, with firms like Raymond James and GAMMA Investing boosting their stakes in Carter's stock.

Carter's (NYSE:CRI - Free Report) had its target price decreased by UBS Group from $32.00 to $26.00 in a research note released on Monday morning,Benzinga reports. UBS Group currently has a neutral rating on the textile maker's stock.

A number of other research analysts have also recently weighed in on the stock. Wells Fargo & Company boosted their target price on shares of Carter's from $25.00 to $28.00 and gave the company an "underweight" rating in a research note on Wednesday, May 14th. Barclays initiated coverage on shares of Carter's in a research note on Monday, April 28th. They issued an "underweight" rating and a $25.00 target price on the stock.

Carter's Trading Down 2.1%

Shares of CRI traded down $0.51 during trading hours on Monday, hitting $23.73. 333,727 shares of the stock were exchanged, compared to its average volume of 1,558,712. Carter's has a fifty-two week low of $23.50 and a fifty-two week high of $71.99. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.20 and a quick ratio of 1.03. The business has a 50-day moving average of $30.91 and a 200-day moving average of $38.57. The firm has a market capitalization of $864.48 million, a P/E ratio of 6.29 and a beta of 0.98.

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

Carter's Increases Dividend

The firm also recently declared a dividend, which was paid on Friday, June 20th. Stockholders of record on Tuesday, June 3rd were given a $0.25 dividend. This represents a dividend yield of 319.0%. This is an increase from Carter's's previous dividend of $0.22. The ex-dividend date of this dividend was Monday, June 2nd. Carter's's payout ratio is presently 26.53%.

Institutional Trading of Carter's

Hedge funds and other institutional investors have recently modified their holdings of the business. Allworth Financial LP raised its position 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. Colonial Trust Co SC bought a new stake in Carter's during the 4th quarter worth approximately $29,000. Signaturefd LLC increased its holdings in Carter's by 269.0% during the 2nd quarter. Signaturefd LLC now owns 1,000 shares of the textile maker's stock worth $30,000 after acquiring an additional 729 shares during the period. Parallel Advisors LLC increased its holdings in Carter's by 80.9% during the 1st quarter. Parallel Advisors LLC now owns 1,062 shares of the textile maker's stock worth $43,000 after acquiring an additional 475 shares during the period. Finally, True Wealth Design LLC increased its holdings in Carter's by 173.0% during the 4th quarter. True Wealth Design LLC now owns 901 shares of the textile maker's stock worth $49,000 after acquiring an additional 571 shares during the period.

About Carter's

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.