Carter’s (NYSE:CRI) Shares Gap Down – What’s Next?

Carter’s, Inc. (NYSE:CRI) shares gapped down before the market opened on Friday . The stock had previously closed at $37.44, but opened at $36.03. Carter’s shares last traded at $37.0850, with a volume of 35,334 shares.

Analysts Set New Price Targets

A number of brokerages recently weighed in on CRI. Wall Street Zen raised shares of Carter’s from a “hold” rating to a “buy” rating in a research note on Saturday, April 18th. Monness Crespi & Hardt increased their price target on Carter’s from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Wells Fargo & Company raised Carter’s from an “underweight” rating to an “equal weight” rating and lifted their price objective for the stock from $30.00 to $42.00 in a research report on Wednesday, June 17th. UBS Group reissued a “buy” rating on shares of Carter’s in a research note on Wednesday, July 8th. Finally, Citigroup restated a “buy” rating on shares of Carter’s in a research report on Tuesday. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $41.17.

Carter’s Stock Up 2.8%

The company has a market cap of $1.42 billion, a price-to-earnings ratio of 15.50 and a beta of 0.86. The stock’s 50-day moving average is $39.54 and its 200-day moving average is $37.47. The company has a current ratio of 2.80, a quick ratio of 1.72 and a debt-to-equity ratio of 0.61.

Carter’s (NYSE:CRI) last posted its quarterly earnings results on Wednesday, May 6th. The textile maker reported $0.39 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.26. Carter’s had a net margin of 3.07% and a return on equity of 13.06%. The business had revenue of $681.11 million during the quarter, compared to analysts’ expectations of $660.59 million. During the same period last year, the company posted $0.66 earnings per share. The business’s quarterly revenue was up 8.1% on a year-over-year basis. Carter’s has set its Q2 2026 guidance at 0.020-0.060 EPS. On average, analysts anticipate that Carter’s, Inc. will post 3.09 earnings per share for the current fiscal year.

Carter’s Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Tuesday, May 26th were paid a $0.25 dividend. The ex-dividend date was Tuesday, May 26th. This represents a $1.00 annualized dividend and a dividend yield of 2.6%. Carter’s’s dividend payout ratio (DPR) is currently 40.32%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Hantz Financial Services Inc. grew its position in shares of Carter’s by 21.8% in the fourth quarter. Hantz Financial Services Inc. now owns 1,577 shares of the textile maker’s stock valued at $51,000 after purchasing an additional 282 shares in the last quarter. PNC Financial Services Group Inc. lifted its holdings in Carter’s by 13.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 4,160 shares of the textile maker’s stock worth $135,000 after purchasing an additional 479 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in Carter’s by 2.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 30,279 shares of the textile maker’s stock worth $982,000 after purchasing an additional 629 shares in the last quarter. UMB Bank n.a. boosted its stake in 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 purchasing an additional 633 shares during the period. Finally, Sound Income Strategies LLC boosted its stake in Carter’s by 9.9% in the 4th quarter. Sound Income Strategies LLC now owns 7,487 shares of the textile maker’s stock worth $243,000 after purchasing an additional 673 shares during the period.

About Carter’s

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.