ValuEngine Upgrades Carter’s (CRI) to Buy

ValuEngine upgraded shares of Carter’s (NYSE:CRI) from a hold rating to a buy rating in a research report released on Thursday morning.

Several other equities research analysts have also recently issued reports on CRI. Zacks Investment Research cut Carter’s from a buy rating to a hold rating in a report on Thursday, January 18th. Wells Fargo upgraded Carter’s from a market perform rating to an outperform rating in a report on Thursday, January 25th. Oppenheimer lifted their target price on Carter’s from $125.00 to $135.00 and gave the company an outperform rating in a report on Thursday, February 22nd. Monness Crespi & Hardt reiterated a buy rating and issued a $137.00 target price (up previously from $115.00) on shares of Carter’s in a report on Friday, February 23rd. Finally, Cowen set a $118.00 target price on Carter’s and gave the company a hold rating in a report on Friday, February 23rd. Two analysts have rated the stock with a sell rating, three have given a hold rating and ten have given a buy rating to the stock. The company currently has an average rating of Buy and an average price target of $121.50.

Shares of CRI stock traded up $0.72 during mid-day trading on Thursday, hitting $110.39. 8,077 shares of the company’s stock were exchanged, compared to its average volume of 856,928. Carter’s has a fifty-two week low of $109.13 and a fifty-two week high of $110.46. The company has a quick ratio of 2.02, a current ratio of 4.14 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $5.17 billion, a price-to-earnings ratio of 19.19, a price-to-earnings-growth ratio of 1.86 and a beta of 0.42.

Carter’s (NYSE:CRI) last posted its quarterly earnings data on Thursday, April 26th. The textile maker reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.11. Carter’s had a return on equity of 35.09% and a net margin of 8.72%. The business had revenue of $755.79 million for the quarter, compared to analysts’ expectations of $744.23 million. During the same quarter last year, the firm earned $0.97 earnings per share. The business’s revenue was up 3.1% on a year-over-year basis. analysts anticipate that Carter’s will post 6.42 earnings per share for the current fiscal year.

Carter’s declared that its Board of Directors has authorized a share buyback plan on Tuesday, February 27th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the textile maker to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

The company also recently announced a quarterly dividend, which will be paid on Friday, June 15th. Investors of record on Tuesday, May 29th will be issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 1.63%. Carter’s’s payout ratio is currently 31.25%.

In related news, Director David Pulver acquired 3,000 shares of the business’s stock in a transaction on Tuesday, May 1st. The shares were bought at an average cost of $100.32 per share, with a total value of $300,960.00. Following the completion of the transaction, the director now directly owns 55,664 shares of the company’s stock, valued at approximately $5,584,212.48. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Brian Lynch sold 26,500 shares of the firm’s stock in a transaction dated Monday, March 5th. The shares were sold at an average price of $116.12, for a total value of $3,077,180.00. The disclosure for this sale can be found here. 3.30% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the business. Cerebellum GP LLC purchased a new position in Carter’s in the fourth quarter valued at about $128,000. Ostrum Asset Management purchased a new position in Carter’s in the first quarter valued at about $181,000. Foundry Partners LLC purchased a new position in Carter’s in the fourth quarter valued at about $200,000. Cigna Investments Inc. New purchased a new position in Carter’s in the fourth quarter valued at about $206,000. Finally, HL Financial Services LLC purchased a new position in Carter’s in the fourth quarter valued at about $210,000. 87.09% of the stock is currently owned by institutional investors.

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, Simple Joys, OshKosh, Skip Hop, and other brands. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International.

To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Carter`s (NYSE:CRI)

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