Carter’s (CRI) Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Carter’s (NYSE:CRI) from a hold rating to a sell rating in a research note released on Thursday morning.

According to Zacks, “Carter’s lagged the industry in a year, attributed to softness in the U.S. Wholesale segment presumably due to the bankruptcy of Toys “R” Us. The company also posted dismal third-quarter 2018 results, wherein earnings and sales lagged estimates and fell year over year. Quarterly results were negatively impacted by lower-than-expected demand for fall transitional products, particularly during the Labor Day holiday season. Although Carter’s expects to recapture lost sales to Toys “R” Us through its solid U.S. retail store presence in the long run, it anticipates the absence of planned sales to Toys “R” Us for 2018 to result in soft wholesale sales. Moreover, higher SG&A expenses are denting the company’s margins. However, management issued encouraging fourth-quarter view. Also, its retail strategy, which focuses on improving productivity and e-commerce business is encouraging.”

CRI has been the topic of a number of other reports. Cowen set a $95.00 price target on Carter’s and gave the stock a hold rating in a research report on Thursday, October 18th. Wells Fargo & Co reduced their price target on Carter’s from $105.00 to $98.00 and set an outperform rating on the stock in a research report on Wednesday, January 2nd. B. Riley began coverage on Carter’s in a research report on Tuesday, October 30th. They set a market perform rating and a $104.00 price target on the stock. Citigroup upped their price target on Carter’s from $107.00 to $113.00 and gave the stock a buy rating in a research report on Monday, December 3rd. Finally, TheStreet downgraded Carter’s from a b rating to a c+ rating in a research report on Thursday, October 25th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $109.50.

Shares of CRI stock opened at $83.82 on Thursday. The firm has a market cap of $3.84 billion, a PE ratio of 14.43, a price-to-earnings-growth ratio of 1.58 and a beta of 0.60. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.49 and a current ratio of 3.67. Carter’s has a 12-month low of $75.66 and a 12-month high of $124.08.

In related news, Director David Pulver purchased 1,000 shares of the business’s stock in a transaction on Wednesday, December 19th. The shares were bought at an average cost of $80.10 per share, with a total value of $80,100.00. Following the transaction, the director now owns 65,517 shares of the company’s stock, valued at $5,247,911.70. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael Dennis Casey sold 25,000 shares of the stock in a transaction dated Monday, November 19th. The stock was sold at an average price of $89.07, for a total value of $2,226,750.00. The disclosure for this sale can be found here. 3.30% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in Carter’s by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 3,875,314 shares of the textile maker’s stock worth $382,106,000 after purchasing an additional 35,282 shares during the period. Vanguard Group Inc grew its position in Carter’s by 0.9% during the 3rd quarter. Vanguard Group Inc now owns 3,875,314 shares of the textile maker’s stock worth $382,106,000 after purchasing an additional 35,282 shares during the period. Victory Capital Management Inc. grew its position in Carter’s by 16.4% during the 4th quarter. Victory Capital Management Inc. now owns 2,544,797 shares of the textile maker’s stock worth $207,706,000 after purchasing an additional 358,393 shares during the period. Mackenzie Financial Corp grew its position in Carter’s by 20.1% during the 4th quarter. Mackenzie Financial Corp now owns 1,348,554 shares of the textile maker’s stock worth $110,069,000 after purchasing an additional 226,089 shares during the period. Finally, JPMorgan Chase & Co. grew its position in Carter’s by 14.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,028,620 shares of the textile maker’s stock worth $101,422,000 after purchasing an additional 132,471 shares during the period. 95.82% of the stock is currently owned by institutional investors.

Carter’s Company Profile

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.

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