Carter’s (NYSE:CRI) Shares Up 13.8% After Better-Than-Expected Earnings

Carter’s, Inc. (NYSE:CRI)’s stock price shot up 13.8% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $39.47 and last traded at $37.9360. 328,995 shares traded hands during trading, a decline of 74% from the average session volume of 1,253,052 shares. The stock had previously closed at $33.34.

The textile maker reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.26. The firm had revenue of $681.11 million for the quarter, compared to analysts’ expectations of $660.59 million. Carter’s had a net margin of 3.17% and a return on equity of 14.45%. The business’s revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.66 EPS. Carter’s has set its Q2 2026 guidance at 0.020-0.060 EPS.

Carter’s Dividend Announcement

The firm 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. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Friday, March 13th. Carter’s’s dividend payout ratio is presently 39.68%.

Analyst Ratings Changes

A number of research analysts have issued reports on CRI shares. Citigroup upgraded shares of Carter’s from a “neutral” rating to a “buy” rating and increased their target price for the stock from $34.00 to $50.00 in a research report on Wednesday, January 21st. Needham & Company LLC started coverage on shares of Carter’s in a research report on Thursday, March 26th. They set a “hold” rating on the stock. Monness Crespi & Hardt upgraded shares of Carter’s from a “neutral” rating to a “buy” rating and set a $45.00 target price on the stock in a research report on Monday, March 2nd. UBS Group increased their target price on shares of Carter’s from $33.00 to $40.00 and gave the stock a “neutral” rating in a research report on Thursday, February 19th. Finally, Zacks Research upgraded shares of Carter’s from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $38.67.

Institutional Trading of Carter’s

Several large investors have recently made changes to their positions in the company. Hantz Financial Services Inc. boosted its position in shares of Carter’s by 21.8% during the 4th quarter. Hantz Financial Services Inc. now owns 1,577 shares of the textile maker’s stock worth $51,000 after acquiring an additional 282 shares in the last quarter. Amalgamated Bank boosted its position in shares of Carter’s by 3.5% during the 3rd quarter. Amalgamated Bank now owns 10,756 shares of the textile maker’s stock worth $304,000 after acquiring an additional 360 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in shares of Carter’s by 13.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 4,160 shares of the textile maker’s stock worth $135,000 after acquiring an additional 479 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its position in shares of Carter’s by 2.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 30,279 shares of the textile maker’s stock worth $982,000 after acquiring an additional 629 shares in the last quarter. Finally, UMB Bank n.a. boosted its position in shares of Carter’s by 445.8% during the 4th quarter. UMB Bank n.a. now owns 775 shares of the textile maker’s stock worth $25,000 after acquiring an additional 633 shares in the last quarter.

Carter’s Price Performance

The company has a current ratio of 2.51, a quick ratio of 1.44 and a debt-to-equity ratio of 0.61. The firm has a market cap of $1.42 billion, a price-to-earnings ratio of 15.32, a price-to-earnings-growth ratio of 4.93 and a beta of 0.86. The company’s 50-day moving average is $36.14 and its 200-day moving average is $34.55.

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.