What Happened?
Shares of children’s apparel manufacturer Carter’s (NYSE: CRI) jumped 3% in the morning session after an analyst at Barclays increased the price target on the shares to $23 from $22.
The upward adjustment in the price target, a 4.55% rise, appeared to capture investor attention more strongly. This mixed signal indicated a slightly improved valuation outlook from the analyst, even as broader concerns about the stock's potential performance remained.
After the initial pop the shares cooled down to $30.61, up 2.9% from previous close.
Is now the time to buy Carter's? Access our full analysis report here.
What Is The Market Telling Us
Carter’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 7.3% on the news that the broader market rallied as President Donald Trump's comments eased trade tensions with China. The positive market-wide sentiment helped stocks recover a portion of their losses from a sell-off during the previous trading session, which was prompted by threats of significantly higher tariffs. Major U.S. indexes, including the S&P 500 and the Nasdaq Composite, posted gains. The improved investor confidence came after the president suggested that the situation with China would be resolved, alleviating fears of an escalating trade dispute that could harm the economy.
Carter's is down 43.1% since the beginning of the year, and at $30.61 per share, it is trading 54.6% below its 52-week high of $67.48 from October 2024. Investors who bought $1,000 worth of Carter’s shares 5 years ago would now be looking at an investment worth $365.02.
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