Carter's (NYSE:CRI) Shares Down 4.1% - Here's What Happened

Key Points

• Carter's, Inc. shares experienced a decline of 4.1%, closing at $24.32 after trading as low as $24.48 and seeing a significant drop in trading volume.
• Recent analyst ratings for Carter's indicate mixed outlooks, with Wells Fargo raising the target price to $28.00 while Barclays lowered it to $22.00.
• The company reported disappointing quarterly earnings of $0.17 per share, missing estimates, but had a revenue increase of 3.7% compared to the previous year.

Shares of Carter's, Inc. (NYSE:CRI - Get Free Report) were down 4.1% on Monday . The stock traded as low as $24.48 and last traded at $24.32. Approximately 146,428 shares were traded during mid-day trading, a decline of 91% from the average daily volume of 1,547,115 shares. The stock had previously closed at $25.36.

Analysts Set New Price Targets

Several equities research analysts have weighed in on CRI shares. Wells Fargo & Company upped their target price on Carter's from $25.00 to $28.00 and gave the stock an "underweight" rating in a report on Wednesday, May 14th. Barclays decreased their price objective on Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a research note on Tuesday, July 29th. Finally, UBS Group decreased their price objective on Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Monday, July 28th.

Carter's Stock Performance

The stock has a market capitalization of $879.78 million, a price-to-earnings ratio of 6.45 and a beta of 0.99. The firm has a fifty day moving average of $30.07 and a 200 day moving average of $37.14. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.20 and a quick ratio of 1.03.

Carter's (NYSE:CRI - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The textile maker reported $0.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.26). The business had revenue of $585.31 million for 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%. The business's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.76 EPS. On average, sell-side analysts anticipate that Carter's, Inc. will post 5.15 earnings per share for the current fiscal year.

Carter's Increases Dividend

The company also recently announced 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 a boost from Carter's's previous dividend of $0.22. The ex-dividend date was Monday, June 2nd. Carter's's dividend payout ratio (DPR) is 26.53%.

Hedge Funds Weigh In On Carter's

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP increased 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 last quarter. Colonial Trust Co SC acquired a new stake in Carter's during the fourth quarter worth $29,000. Signaturefd LLC increased its stake in Carter's by 269.0% during the second 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 last quarter. Parallel Advisors LLC increased its stake in Carter's by 80.9% during the first 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 last quarter. Finally, True Wealth Design LLC increased its stake in Carter's by 173.0% during the fourth 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 last quarter.

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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