Carter's (NYSE:CRI) Share Price Breaks Above Fifty Day Moving Average - What's Next?

Key Points

• Carter’s shares rose above their 50-day moving average, reaching $33.42 and last trading near $33.34, up 7.4%. The stock remains below its 200-day moving average of $36.30.
• Analyst sentiment is moderately positive, with a consensus “Moderate Buy” rating and an average price target of $40.86, although several firms recently reduced their targets or maintained neutral/hold ratings.
• The company reported stronger-than-expected quarterly results, including $0.26 in adjusted earnings per share and $615.49 million in revenue. Carter’s also pays a quarterly dividend of $0.25 per share, representing a 3.0% yield.

Carter's, Inc. (NYSE:CRI - Get Free Report) passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $32.08 and traded as high as $33.42. Carter's shares last traded at $33.3430, with a volume of 2,053,469 shares trading hands.

Wall Street Analyst Weigh In

CRI has been the subject of several research reports. Citigroup reaffirmed a "buy" rating on shares of Carter's in a research report on Tuesday, July 21st. UBS Group decreased their price target on shares of Carter's from $41.00 to $38.00 and set a "neutral" rating on the stock in a research note on Monday, October 19th. Wells Fargo & Company lowered their price target on shares of Carter's from $42.00 to $30.00 and set an "equal weight" rating on the stock in a report on Monday, October 12th. Wall Street Zen cut shares of Carter's from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 26th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Carter's in a report on Tuesday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $40.86.

Carter's Trading Up 7.4%

The company has a 50 day moving average of $32.08 and a 200 day moving average of $36.30. The company has a current ratio of 2.47, a quick ratio of 1.50 and a debt-to-equity ratio of 0.55. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of 6.24, a price-to-earnings-growth ratio of 3.50 and a beta of 0.84.

Carter's (NYSE:CRI - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The textile maker reported $0.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.20. Carter's had a return on equity of 12.78% and a net margin of 6.55%. The firm had revenue of $615.49 million for the quarter, compared to analysts' expectations of $605.68 million. During the same period in the prior year, the business posted $0.17 earnings per share. The business's revenue was up 5.2% compared to the same quarter last year. As a group, research analysts anticipate that Carter's, Inc. will post 3.28 EPS for the current year.

Carter's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Tuesday, September 1st. Carter's's dividend payout ratio is currently 18.73%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. State of Wyoming boosted its stake in Carter's by 104.6% in the third quarter. State of Wyoming now owns 22,843 shares of the textile maker's stock valued at $715,000 after acquiring an additional 11,681 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its position in shares of Carter's by 362.9% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 44,900 shares of the textile maker's stock worth $1,406,000 after purchasing an additional 35,200 shares during the last quarter. Crossmark Global Holdings Inc. boosted its position in shares of Carter's by 13.5% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 8,532 shares of the textile maker's stock worth $267,000 after purchasing an additional 1,014 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Carter's by 27.7% in the 3rd quarter. Nisa Investment Advisors LLC now owns 5,935 shares of the textile maker's stock worth $186,000 after purchasing an additional 1,287 shares during the last quarter. Finally, IFP Advisors Inc grew its stake in shares of Carter's by 16,840.0% during the third quarter. IFP Advisors Inc now owns 847 shares of the textile maker's stock worth $27,000 after purchasing an additional 842 shares during the period.

Carter's Company Profile

Carter's, Inc NYSE: CRI is a major designer, source and marketer of apparel and related products for babies and young children. The company offers clothing, accessories, footwear, gifts and other products for infants, toddlers and children through brands including Carter's, OshKosh B'gosh, Little Planet and Skip Hop.

Founded in 1865, Carter's has built a long-standing presence in the children's apparel market. Its products are sold through company-operated retail stores, e-commerce websites and wholesale partners, including department stores, mass merchants and specialty retailers.

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