Zacks Investment Research Lowers Carter’s (NYSE:CRI) to Sell

Carter’s (NYSE:CRI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday, Zacks.com reports. They presently have a $87.00 price objective on the textile maker’s stock. Zacks Investment Research‘s price target suggests a potential upside of 3.51% from the stock’s current price.

According to Zacks, “Shares of Carter’s have gained and outpaced the industry in the past three months. The stock is gaining from rising demand for its products online, resulting in higher e-commerce sales. Notably, e-commerce sales contributed nearly 20% to net sales in first-quarter 2020, driven by robust online sales growth in children's apparel across the United States. Going ahead, management expects online sales to exceed $1 billion in 2020. Also, omni-channel efforts such as the relaunch of the ship-in-store initiative bode well. However, the company’s bottom line lagged the Zacks Consensus Estimate in first-quarter 2020, while sales beat the same. Results were affected by store closures in North America, reduced wholesale sales and higher inventory stemming from the COVID-19 pandemic. Moreover, soft margins remained a drag.”

A number of other equities research analysts have also weighed in on CRI. Citigroup lowered their price target on shares of Carter’s from $90.00 to $85.00 and set a “buy” rating for the company in a report on Monday, April 20th. UBS Group increased their price objective on shares of Carter’s from $75.00 to $82.00 and gave the company a “neutral” rating in a research note on Thursday, June 11th. Wells Fargo & Co reiterated a “buy” rating and set a $100.00 price objective on shares of Carter’s in a research note on Thursday, April 16th. Monness Crespi & Hardt reduced their price objective on shares of Carter’s from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Finally, DA Davidson increased their price objective on shares of Carter’s from $80.00 to $88.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the stock. Carter’s presently has an average rating of “Buy” and an average price target of $89.00.

CRI traded up $1.51 during trading hours on Tuesday, reaching $84.05. 7,418 shares of the stock traded hands, compared to its average volume of 586,323. The firm’s fifty day simple moving average is $84.29 and its two-hundred day simple moving average is $88.72. The company has a market cap of $3.60 billion, a price-to-earnings ratio of 25.39, a PEG ratio of 8.80 and a beta of 1.26. Carter’s has a fifty-two week low of $60.17 and a fifty-two week high of $112.46. The company has a debt-to-equity ratio of 2.63, a current ratio of 3.72 and a quick ratio of 2.40.

Carter’s (NYSE:CRI) last released its quarterly earnings results on Tuesday, May 5th. The textile maker reported ($0.81) earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.30 by ($1.11). The firm had revenue of $654.00 million for the quarter, compared to analyst estimates of $665.14 million. Carter’s had a net margin of 4.39% and a return on equity of 26.85%. Carter’s’s revenue for the quarter was down 11.7% on a year-over-year basis. During the same period in the previous year, the business posted $0.87 earnings per share. On average, research analysts predict that Carter’s will post 3.17 earnings per share for the current year.

Several institutional investors have recently bought and sold shares of CRI. JPMorgan Chase & Co. lifted its position in shares of Carter’s by 68.7% in the 1st quarter. JPMorgan Chase & Co. now owns 1,666,031 shares of the textile maker’s stock worth $109,507,000 after buying an additional 678,279 shares during the last quarter. Norges Bank bought a new stake in Carter’s in the 4th quarter valued at about $56,052,000. Credit Suisse AG lifted its position in Carter’s by 121.2% in the 4th quarter. Credit Suisse AG now owns 38,116 shares of the textile maker’s stock valued at $4,168,000 after purchasing an additional 217,907 shares during the last quarter. Advisory Research Inc. bought a new stake in Carter’s in the 1st quarter valued at about $9,594,000. Finally, AQR Capital Management LLC lifted its position in Carter’s by 34.4% in the 4th quarter. AQR Capital Management LLC now owns 548,999 shares of the textile maker’s stock valued at $60,028,000 after purchasing an additional 140,505 shares during the last quarter.

About Carter’s

Carter's, Inc, together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, Child of Mine, Just One You, Precious Firsts, Precious Baby, Simple Joys, OshKosh B'gosh, Skip Hop, and other brands. The company operates through three segments: U.S.

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