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

Carter’s, Inc. (NYSE:CRI) 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 trading hands.

Wall Street Analyst Weigh In

CRI has been the subject of a number of recent analyst reports. Wells Fargo & Company upgraded Carter’s from an “underweight” rating to an “equal weight” rating and increased their price target for the company from $30.00 to $42.00 in a research report on Wednesday, June 17th. Weiss Ratings downgraded Carter’s from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Wall Street Zen lowered shares of Carter’s from a “buy” rating to a “hold” rating in a research note on Saturday. The Goldman Sachs Group upgraded shares of Carter’s from a “neutral” rating to a “buy” rating and set a $38.00 target price for the company in a report on Thursday, April 9th. Finally, Monness Crespi & Hardt lifted their target price on shares of Carter’s from $45.00 to $50.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Carter’s has an average rating of “Hold” and a consensus target price of $41.17.

Carter’s Price Performance

The stock has a market capitalization of $1.43 billion, a price-to-earnings ratio of 15.60 and a beta of 0.86. The company has a current ratio of 2.80, a quick ratio of 1.72 and a debt-to-equity ratio of 0.61. The stock has a 50-day simple moving average of $39.65 and a 200 day simple moving average of $37.48.

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

Carter’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Tuesday, May 26th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $1.00 dividend on an annualized basis and a yield of 2.6%. Carter’s’s payout ratio is presently 40.32%.

Institutional Investors Weigh In On Carter’s

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRI. AQR Capital Management LLC grew its holdings in shares of Carter’s by 113.7% during the 2nd quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock valued at $77,267,000 after acquiring an additional 1,364,698 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of 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 acquiring an additional 472,786 shares in the last quarter. Morgan Stanley boosted its position in Carter’s by 15.7% during the fourth quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock valued at $57,143,000 after purchasing an additional 239,469 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Carter’s by 5.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,597,901 shares of the textile maker’s stock valued at $51,820,000 after purchasing an additional 82,498 shares during the last quarter. Finally, UBS Group AG boosted its position in Carter’s by 29.6% during the fourth quarter. UBS Group AG now owns 1,349,777 shares of the textile maker’s stock valued at $43,773,000 after purchasing an additional 308,347 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.