Carter's (NYSE:CRI) Reaches New 12-Month Low on Disappointing Earnings

Key Points

• Carter's, Inc. shares hit a new 52-week low of $24.09 after the company reported disappointing earnings, with earnings per share of $0.17, missing analysts' expectations by $0.26.
• The firm declared a dividend increase to $0.25 per share, with a current yield of 3.19% and a payout ratio of 22.12%.
• Analysts have adjusted their price targets for Carter's, with Barclays setting an "underweight" rating and a target price of $25, while UBS lowered their target from $37 to $32.
• The company's stock has faced multiple sell and hold ratings, with an average target price of $36.80 and an overall rating of "Reduce" from analysts.

Shares of Carter's, Inc. (NYSE:CRI - Get Free Report) hit a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $27.99 and last traded at $24.09, with a volume of 68169 shares trading hands. The stock had previously closed at $32.75.

The textile maker reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates of $0.43 by ($0.26). Carter's had a return on equity of 23.50% and a net margin of 5.80%. During the same quarter in the prior year, the business posted $0.76 EPS. Carter's's quarterly revenue was up 3.7% on a year-over-year basis.

Carter's Increases Dividend

The firm also recently declared a dividend, which was paid on Friday, June 20th. Investors of record on Tuesday, June 3rd were paid a dividend of $0.25 per share. This is an increase from Carter's's previous dividend of $0.22. The ex-dividend date of this dividend was Monday, June 2nd. This represents a yield of 3.19%. Carter's's dividend payout ratio is presently 22.12%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on CRI shares. Barclays started 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. UBS Group reduced their target price on shares of Carter's from $37.00 to $32.00 and set a "neutral" rating on the stock in a research note on Monday, April 28th. Finally, Wells Fargo & Company increased 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. Three research analysts have rated the stock with a sell rating and two have assigned a hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $36.80.

Institutional Trading of Carter's

A number of institutional investors have recently bought and sold shares of the stock. Colonial Trust Co SC acquired a new stake in Carter's during the 4th quarter valued at approximately $29,000. Allworth Financial LP lifted its stake in Carter's by 313.1% during the 1st quarter. Allworth Financial LP now owns 723 shares of the textile maker's stock valued at $28,000 after acquiring an additional 548 shares during the period. True Wealth Design LLC increased its holdings in shares of Carter's by 173.0% during the 4th quarter. True Wealth Design LLC now owns 901 shares of the textile maker's stock valued at $49,000 after purchasing an additional 571 shares in the last quarter. New Age Alpha Advisors LLC purchased a new position in shares of Carter's during the 4th quarter valued at approximately $54,000. Finally, Signaturefd LLC increased its holdings in shares of Carter's by 269.0% during the 2nd quarter. Signaturefd LLC now owns 1,000 shares of the textile maker's stock valued at $30,000 after purchasing an additional 729 shares in the last quarter.

Carter's Stock Performance

The company has a current ratio of 2.56, a quick ratio of 1.40 and a debt-to-equity ratio of 0.59. The stock has a market capitalization of $861.10 million, a PE ratio of 5.23 and a beta of 0.98. The firm's fifty day moving average price is $31.86 and its two-hundred day moving average price is $39.48.

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.

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