KinderCare Learning Companies, Inc. (NYSE:KLC) Stock Has Average Target Price of $4.06

Key Points

• Analysts are largely bearish on KinderCare: Ten analysts assign the stock an average “Reduce” rating, with four sells, five holds and one buy. The average 12-month price target is $4.06, though recent targets include Morgan Stanley’s $2.00 and UBS’s $4.50.
• Shares have declined sharply, opening at $1.95 versus a 12-month range of $1.75 to $7.10. The stock trades below its 50-day and 200-day moving averages, while its debt-to-equity ratio stands at 1.97.
• Quarterly results fell short of expectations: KinderCare reported $0.08 in EPS versus the $0.10 consensus estimate, while revenue of $697.52 million was slightly below forecasts and declined 0.4% year over year. The company guided to fiscal 2026 EPS of $0.05-$0.15.

Shares of KinderCare Learning Companies, Inc. (NYSE:KLC - Get Free Report) have received an average recommendation of "Reduce" from the ten analysts that are presently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $4.06.

KLC has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $6.00 target price on shares of KinderCare Learning Companies in a report on Friday, August 14th. JPMorgan Chase & Co. lowered KinderCare Learning Companies from a "neutral" rating to an "underweight" rating in a report on Friday, August 14th. Weiss Ratings downgraded KinderCare Learning Companies from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, August 17th. Morgan Stanley cut their price objective on KinderCare Learning Companies from $2.50 to $2.00 and set an "underweight" rating on the stock in a research note on Wednesday, September 23rd. Finally, UBS Group reduced their target price on KinderCare Learning Companies from $5.00 to $4.50 and set a "neutral" rating for the company in a report on Friday, August 14th.

Institutional Trading of KinderCare Learning Companies

A number of institutional investors and hedge funds have recently modified their holdings of the company. Integrated Wealth Concepts LLC bought a new stake in shares of KinderCare Learning Companies during the 2nd quarter worth $30,000. Caitong International Asset Management Co. Ltd raised its holdings in KinderCare Learning Companies by 434.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 7,829 shares of the company's stock worth $34,000 after acquiring an additional 6,365 shares during the period. Pallas Capital Advisors LLC bought a new position in KinderCare Learning Companies in the 2nd quarter worth $45,000. Dimensional Fund Advisors LP acquired a new position in KinderCare Learning Companies during the 1st quarter worth $25,000. Finally, Corient Private Wealth LP acquired a new position in KinderCare Learning Companies during the 2nd quarter worth $61,000.

KinderCare Learning Companies Stock Performance

Shares of KLC opened at $1.95 on Wednesday. The firm has a market cap of $230.52 million, a price-to-earnings ratio of -0.49 and a beta of 3.78. The company's fifty day moving average is $3.37 and its 200-day moving average is $3.57. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 1.97. KinderCare Learning Companies has a 12 month low of $1.75 and a 12 month high of $7.10.

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 analyst estimates of $697.94 million. KinderCare Learning Companies had a negative net margin of 17.23% and a positive return on equity of 6.65%. The firm's revenue for the quarter was down .4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.22 EPS. KinderCare Learning Companies has set its FY 2026 guidance at 0.050-0.150 EPS. Equities analysts expect that KinderCare Learning Companies will post 0.1 EPS for the current fiscal year.

About KinderCare Learning Companies

KinderCare Learning Companies, Inc NYSE: KLC is a provider of early childhood education and child care services in the United States. The company operates center-based programs for infants, toddlers, preschoolers and pre-kindergarten children, with an emphasis on early learning, development and school readiness.

Through its KinderCare Learning Centers and other programs, the company also provides before- and after-school care, summer camps and school-age enrichment services. Its offerings are available to families directly and through employer-supported child care arrangements, including services marketed to businesses seeking child care benefits for employees.

Founded in 1969, KinderCare serves communities across the United States through a network of early learning centers and school-based programs.

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