Carter’s (NYSE:CRI) Shares Gap Up Following Analyst Upgrade

Shares of Carter’s, Inc. (NYSE:CRI) gapped up prior to trading on Thursday after The Goldman Sachs Group upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $34.58, but opened at $35.72. The Goldman Sachs Group now has a $38.00 price target on the stock. Carter’s shares last traded at $35.6450, with a volume of 227,227 shares changing hands.

Several other brokerages also recently commented on CRI. Monness Crespi & Hardt upgraded shares of Carter’s from a “neutral” rating to a “buy” rating and set a $45.00 target price for the company in a report on Monday, March 2nd. Needham & Company LLC started coverage on shares of Carter’s in a research report on Thursday, March 26th. They set a “hold” rating for the company. UBS Group increased their price target on shares of Carter’s from $33.00 to $40.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. Citigroup upgraded shares of Carter’s from a “neutral” rating to a “buy” rating and increased their price target for the company from $34.00 to $50.00 in a research report on Wednesday, January 21st. Finally, Weiss Ratings upgraded shares of Carter’s from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, March 19th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $37.33.

Institutional Investors Weigh In On Carter’s

A number of institutional investors and hedge funds have recently modified their holdings of the company. Hantz Financial Services Inc. lifted its holdings 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 worth $51,000 after buying an additional 282 shares in the last quarter. Amalgamated Bank lifted its holdings in shares of Carter’s by 3.5% in the third quarter. Amalgamated Bank now owns 10,756 shares of the textile maker’s stock worth $304,000 after buying an additional 360 shares in the last quarter. PNC Financial Services Group Inc. lifted its holdings in shares of Carter’s by 13.0% in the fourth quarter. PNC Financial Services Group Inc. now owns 4,160 shares of the textile maker’s stock worth $135,000 after buying an additional 479 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in shares of Carter’s by 2.1% in 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 in the last quarter. Finally, UMB Bank n.a. lifted its holdings in shares of Carter’s by 445.8% in 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 in the last quarter.

Carter’s Stock Performance

The stock has a market capitalization of $1.36 billion, a PE ratio of 14.58, a P/E/G ratio of 5.14 and a beta of 0.98. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.51 and a quick ratio of 1.44. The business’s fifty day moving average price is $36.74 and its 200-day moving average price is $33.64.

Carter’s (NYSE:CRI) last announced its quarterly earnings results on Friday, February 27th. The textile maker reported $1.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.70 by $0.20. Carter’s had a net margin of 3.17% and a return on equity of 14.45%. The firm had revenue of $925.45 million for the quarter, compared to the consensus estimate of $912.36 million. During the same period in the prior year, the firm posted $2.39 earnings per share. The company’s revenue for the quarter was up 7.7% on a year-over-year basis. Carter’s has set its Q1 2026 guidance at 0.020-0.080 EPS. As a group, equities research analysts expect that Carter’s, Inc. will post 5.15 EPS for the current year.

Carter’s Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were given a dividend of $0.25 per share. The ex-dividend date was Friday, March 13th. This represents a $1.00 annualized dividend and a yield of 2.7%. Carter’s’s payout ratio is presently 39.68%.

Carter’s Company Profile

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.