KinderCare Learning Companies, Inc. (KLC) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts are broadly bearish on KinderCare Learning Companies: The stock has an average “Reduce” rating, with five sells, five holds and one buy. The average 12-month price target is $3.77, though several firms recently lowered their targets.
• KLC shares opened at $1.76, near their 52-week low of $1.62 and well below their 200-day moving average of $3.51, reflecting significant recent weakness.
• The company’s latest quarterly results fell short of expectations, with EPS of $0.08 versus the $0.10 consensus and revenue of $697.52 million. Revenue declined 0.4% year over year, while the company reported a negative 17.23% net margin.

KinderCare Learning Companies, Inc. (NYSE:KLC - Get Free Report) has earned an average recommendation of "Reduce" from the eleven research firms that are currently covering the firm, Marketbeat Ratings reports. Five analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and one has given a buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $3.77.

Several research firms recently commented on KLC. UBS Group decreased their price target on shares of KinderCare Learning Companies from $5.00 to $4.50 and set a "neutral" rating on the stock in a research note on Friday, August 14th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $6.00 target price on shares of KinderCare Learning Companies in a report on Friday, August 14th. Wall Street Zen upgraded shares of KinderCare Learning Companies from a "strong sell" rating to a "sell" rating in a research report on Tuesday, September 15th. Morgan Stanley reduced their price target on shares of KinderCare Learning Companies from $2.50 to $2.00 and set an "underweight" rating for the company in a report on Wednesday, September 23rd. Finally, Weiss Ratings downgraded shares of KinderCare Learning Companies from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, August 17th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Silver Point Capital L.P. purchased a new position in shares of KinderCare Learning Companies in the second quarter valued at $21,696,250. BlackRock Inc. bought a new position in shares of KinderCare Learning Companies during the 2nd quarter valued at $9,413,000. GSA Capital Partners LLP purchased a new position in KinderCare Learning Companies in the 2nd quarter worth approximately $1,886,000. First Trust Advisors LP increased its position in shares of KinderCare Learning Companies by 146.0% in the first quarter. First Trust Advisors LP now owns 582,830 shares of the company's stock valued at $1,282,000 after acquiring an additional 345,948 shares during the period. Finally, Militia Capital Management LLC purchased a new position in shares of KinderCare Learning Companies during the first quarter valued at approximately $421,000.

KinderCare Learning Companies Price Performance

Shares of KLC opened at $1.76 on Friday. The company's fifty day simple moving average is $2.23 and its 200 day simple moving average is $3.51. The company has a market cap of $209.18 million, a price-to-earnings ratio of -0.44 and a beta of 3.86. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 1.97. KinderCare Learning Companies has a 1-year low of $1.62 and a 1-year high of $6.27.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.02). The business had revenue of $697.52 million during the quarter, compared to the consensus estimate of $697.94 million. KinderCare Learning Companies had a negative net margin of 17.23% and a positive return on equity of 6.65%. KinderCare Learning Companies's quarterly revenue was down .4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.22 EPS. KinderCare Learning Companies has set its FY 2026 guidance at 0.050-0.150 EPS. On average, research analysts forecast that KinderCare Learning Companies will post 0.10 earnings per share for the current fiscal year.

KinderCare Learning Companies Company Profile

KinderCare Learning Companies, Inc is a provider of early childhood education and care in the United States. Through its KinderCare Learning Centers, the company offers full- and part-time programs for infants, toddlers, preschoolers and pre-kindergarten children, with services designed to support children's early development and school readiness.

The company also provides school-age programs, including before- and after-school care and summer programs, through its Champions brand. In addition, KinderCare offers employer-sponsored child care solutions through KinderCare at Work, helping organizations provide access to child care and related family-support services for employees.

Founded in 1969, KinderCare has developed a nationwide network of education and care centers serving families across the United States.

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