Carter’s (NYSE:CRI) Trading Up 6.1% – Here’s Why

Carter’s, Inc. (NYSE:CRI) shares were up 6.1% during trading on Monday . The company traded as high as $35.82 and last traded at $35.51. Approximately 102,412 shares traded hands during trading, a decline of 92% from the average daily volume of 1,245,602 shares. The stock had previously closed at $33.46.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CRI. Weiss Ratings lowered Carter’s from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Monness Crespi & Hardt lifted their price objective on shares of Carter’s from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Needham & Company LLC began coverage on Carter’s in a research note on Thursday, March 26th. They issued a “hold” rating on the stock. Citigroup raised Carter’s from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $34.00 to $50.00 in a research note on Wednesday, January 21st. Finally, Wells Fargo & Company upped their price objective on shares of Carter’s from $28.00 to $33.00 and gave the stock an “underweight” rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $39.67.

Carter’s Stock Performance

The firm has a market cap of $1.28 billion, a PE ratio of 14.05 and a beta of 0.86. The business has a 50-day simple moving average of $35.47 and a 200 day simple moving average of $34.73. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.80 and a quick ratio of 1.72.

Carter’s (NYSE:CRI) last posted its quarterly earnings results on Wednesday, May 6th. The textile maker reported $0.39 earnings per share 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 analyst estimates of $660.59 million. During the same period in the prior year, the business posted $0.66 earnings per share. The company’s 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. Equities research analysts forecast that Carter’s, Inc. will post 3.06 EPS for the current year.

Carter’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Tuesday, May 26th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, May 26th. Carter’s’s payout ratio is presently 40.32%.

Institutional Trading of Carter’s

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. RWWM Inc. boosted its stake in Carter’s by 44.8% during the third quarter. RWWM Inc. now owns 5,900,170 shares of the textile maker’s stock valued at $166,503,000 after buying an additional 1,824,379 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Carter’s by 1.1% in the third quarter. Vanguard Group Inc. now owns 4,226,804 shares of the textile maker’s stock valued at $119,280,000 after buying an additional 46,560 shares in the last quarter. AQR Capital Management LLC boosted its position in Carter’s by 113.7% during the second quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock worth $77,267,000 after acquiring an additional 1,364,698 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Carter’s by 36.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker’s stock worth $63,121,000 after buying an additional 472,786 shares in the last quarter. Finally, Morgan Stanley increased its stake in Carter’s by 15.7% during the fourth quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock worth $57,143,000 after acquiring an additional 239,469 shares during the last quarter.

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.