Carter’s (NYSE:CRI) Cut to Buy at Wall Street Zen

Wall Street Zen lowered shares of Carter’s (NYSE:CRI) from a strong-buy rating to a buy rating in a report released on Saturday morning,Wall Street Zen reports.

Several other research analysts also recently issued reports on the company. Weiss Ratings upgraded Carter’s from a “sell (d+)” rating to a “hold (c)” rating in a research report on Thursday, August 13th. Wells Fargo & Company raised Carter’s from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $30.00 to $42.00 in a research report on Wednesday, June 17th. Zacks Research raised Carter’s from a “hold” rating to a “strong-buy” rating in a report on Friday, August 21st. UBS Group restated a “buy” rating on shares of Carter’s in a research report on Wednesday, July 8th. Finally, Citigroup reaffirmed a “buy” rating on shares of Carter’s in a research note on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Carter’s has an average rating of “Moderate Buy” and an average price target of $41.17.

Carter’s Price Performance

Shares of NYSE CRI opened at $32.38 on Friday. 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 company’s 50-day moving average price is $38.69 and its 200 day moving average price is $37.78. Carter’s has a 52 week low of $27.15 and a 52 week high of $44.44. The stock has a market cap of $1.19 billion, a price-to-earnings ratio of 6.06, a PEG ratio of 3.78 and a beta of 0.87.

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

Carter’s Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Tuesday, September 1st. Carter’s’s payout ratio is 18.73%.

Hedge Funds Weigh In On Carter’s

Several hedge funds and other institutional investors have recently modified their holdings of the company. Hantz Financial Services Inc. increased its position in Carter’s by 21.8% during the 4th quarter. Hantz Financial Services Inc. now owns 1,577 shares of the textile maker’s stock worth $51,000 after purchasing an additional 282 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in Carter’s by 13.0% during the fourth quarter. PNC Financial Services Group Inc. now owns 4,160 shares of the textile maker’s stock valued at $135,000 after buying an additional 479 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its stake in Carter’s by 2.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 30,279 shares of the textile maker’s stock worth $982,000 after buying an additional 629 shares during the period. UMB Bank n.a. grew its stake in Carter’s by 445.8% during the fourth quarter. UMB Bank n.a. now owns 775 shares of the textile maker’s stock worth $25,000 after buying an additional 633 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in Carter’s by 4.7% during the second quarter. Russell Investments Group Ltd. now owns 16,482 shares of the textile maker’s stock worth $497,000 after buying an additional 734 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.