Carter's (NYSE:CRI) Shares Down 8% - Here's What Happened

Key Points

• Carter's shares fell 8% intraday to about $33.23 on Friday, with volume of ~231,886 shares—an 81% decline versus average daily volume—after a prior close of $36.12.
• Analyst sentiment is mixed but leaning positive: several upgrades (Zacks to strong-buy; Citigroup to buy with a $50 target) while MarketBeat's consensus remains a "Hold" with an average target of $38.67.
• Q4 results beat expectations: EPS $1.90 vs. $1.70 consensus and revenue $925.45M (+7.7% YoY); management set Q1 2026 guidance of $0.02–$0.08 EPS, and the company pays a $0.25 quarterly dividend (2.9% yield).

Carter's, Inc. (NYSE:CRI - Get Free Report)'s stock price dropped 8% during mid-day trading on Friday . The stock traded as low as $33.11 and last traded at $33.2290. Approximately 231,886 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 1,225,734 shares. The stock had previously closed at $36.12.

Wall Street Analyst Weigh In

CRI has been the topic of several research reports. Zacks Research raised Carter's from a "hold" rating to a "strong-buy" rating in a research report on Monday, January 19th. Citigroup raised Carter's from a "neutral" rating to a "buy" rating and raised their target price for the stock from $34.00 to $50.00 in a research report on Wednesday, January 21st. Needham & Company LLC initiated coverage on Carter's in a research report on Thursday, March 26th. They issued a "hold" rating on the stock. Weiss Ratings raised Carter's from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, March 19th. Finally, Wall Street Zen raised Carter's from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $38.67.

Carter's Price Performance

The firm has a 50 day moving average of $36.36 and a 200-day moving average of $34.47. The company has a market cap of $1.25 billion, a P/E ratio of 13.52, a P/E/G ratio of 5.42 and a beta of 0.98. The company has a current ratio of 2.51, a quick ratio of 1.44 and a debt-to-equity ratio of 0.61.

Carter's (NYSE:CRI - Get Free Report) last issued its earnings results on Friday, February 27th. The textile maker reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.70 by $0.20. Carter's had a return on equity of 14.45% and a net margin of 3.17%.The company had revenue of $925.45 million for the quarter, compared to the consensus estimate of $912.36 million. During the same quarter last year, the company earned $2.39 EPS. The firm's quarterly revenue was up 7.7% on a year-over-year basis. Carter's has set its Q1 2026 guidance at 0.020-0.080 EPS. On average, equities research analysts predict that Carter's, Inc. will post 2.99 EPS for the current year.

Carter's Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $1.00 dividend on an annualized basis and a yield of 2.9%. Carter's's dividend payout ratio is presently 39.68%.

Hedge Funds Weigh In On Carter's

Several institutional investors have recently bought and sold shares of CRI. Hantz Financial Services Inc. grew its position in Carter's by 21.8% in the 4th quarter. Hantz Financial Services Inc. now owns 1,577 shares of the textile maker's stock valued at $51,000 after acquiring an additional 282 shares during the last quarter. Amalgamated Bank grew its position in Carter's by 3.5% in the 3rd quarter. Amalgamated Bank now owns 10,756 shares of the textile maker's stock valued at $304,000 after acquiring an additional 360 shares during the last quarter. PNC Financial Services Group Inc. grew its position in Carter's by 13.0% in the 4th quarter. PNC Financial Services Group Inc. now owns 4,160 shares of the textile maker's stock valued at $135,000 after acquiring an additional 479 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its position in Carter's by 2.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 30,279 shares of the textile maker's stock valued at $982,000 after acquiring an additional 629 shares during the last quarter. Finally, UMB Bank n.a. lifted its holdings in shares of Carter's by 445.8% in the 4th quarter. UMB Bank n.a. now owns 775 shares of the textile maker's stock worth $25,000 after buying an additional 633 shares during the period.

Carter's Company Profile

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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