KinderCare Learning Companies (NYSE:KLC) Downgraded to Underweight Rating by JPMorgan Chase & Co.

JPMorgan Chase & Co. cut shares of KinderCare Learning Companies (NYSE:KLC) from a neutral rating to an underweight rating in a report published on Friday morning, Marketbeat Ratings reports.

A number of other equities analysts have also commented on the stock. Robert W. Baird raised their price objective on shares of KinderCare Learning Companies from $1.50 to $4.00 and gave the stock a “neutral” rating in a research note on Friday, May 15th. UBS Group increased their target price on KinderCare Learning Companies from $3.00 to $5.00 and gave the company a “neutral” rating in a report on Friday, May 15th. BMO Capital Markets raised their target price on KinderCare Learning Companies from $4.00 to $6.00 and gave the stock an “outperform” rating in a research report on Monday, May 18th. Barclays lifted their price target on KinderCare Learning Companies from $2.00 to $3.00 and gave the company an “underweight” rating in a report on Monday, May 18th. Finally, Wall Street Zen downgraded KinderCare Learning Companies from a “hold” rating to a “sell” rating in a research note on Saturday, May 16th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $4.13.

KinderCare Learning Companies Price Performance

NYSE KLC opened at $2.58 on Friday. KinderCare Learning Companies has a 12 month low of $1.75 and a 12 month high of $7.77. The firm has a market capitalization of $306.14 million, a PE ratio of -0.65 and a beta of 4.00. The company’s 50 day simple moving average is $4.70 and its 200 day simple moving average is $3.96. The company has a debt-to-equity ratio of 1.95, a current ratio of 0.74 and a quick ratio of 0.73.

KinderCare Learning Companies (NYSE:KLC) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.02). The business had revenue of $697.52 million during the quarter, compared to analyst estimates of $697.94 million. KinderCare Learning Companies had a positive return on equity of 6.06% and a negative net margin of 17.23%.The business’s revenue for the quarter was down .4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.22 EPS. KinderCare Learning Companies has set its FY 2026 guidance at 0.050-0.150 EPS. As a group, equities research analysts forecast that KinderCare Learning Companies will post 0.2 EPS for the current fiscal year.

Hedge Funds Weigh In On KinderCare Learning Companies

Several hedge funds have recently bought and sold shares of KLC. Tower Research Capital LLC TRC lifted its position in shares of KinderCare Learning Companies by 62.4% in the second quarter. Tower Research Capital LLC TRC now owns 5,128 shares of the company’s stock worth $52,000 after buying an additional 1,971 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of KinderCare Learning Companies by 350.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 6,600 shares of the company’s stock valued at $29,000 after acquiring an additional 5,136 shares during the last quarter. PharVision Advisers LLC bought a new position in shares of KinderCare Learning Companies in the 3rd quarter valued at approximately $68,000. Sherbrooke Park Advisers LLC bought a new position in shares of KinderCare Learning Companies in the 3rd quarter valued at approximately $70,000. Finally, Pallas Capital Advisors LLC acquired a new stake in KinderCare Learning Companies in the 2nd quarter worth approximately $45,000.

Key KinderCare Learning Companies News

Here are the key news stories impacting KinderCare Learning Companies this week:

• Positive Sentiment: KinderCare is pursuing “footprint optimization,” including plans to close approximately 80–85 centers in 2026. Management expects the restructuring to improve operating efficiency and better align its center network with demand. KinderCare 2026 outlook and center closures
• Neutral Sentiment: Holzer & Holzer announced an investigation into whether KinderCare complied with federal securities laws after the earnings disclosure and subsequent stock decline. The announcement does not allege wrongdoing or indicate that a regulatory action has been filed, but it adds potential legal and headline risk. KLC investor investigation announcement
• Negative Sentiment: Second-quarter adjusted earnings were $0.08 per share, below the $0.10 consensus estimate and down from $0.22 a year earlier. Revenue of $697.5 million was slightly below expectations and declined 0.4% year over year. The company also reported an $8.8 million net loss. KinderCare misses second-quarter earnings estimates
• Negative Sentiment: Adjusted EBITDA fell to $63 million from $82 million a year earlier, reflecting lower occupancy and weaker operating leverage. Management reduced its 2026 adjusted EPS outlook to $0.05–$0.15, below the $0.20 analyst consensus, while forecasting revenue of approximately $2.66–$2.70 billion. KinderCare lowers 2026 outlook
• Negative Sentiment: JPMorgan downgraded KinderCare from “neutral” to “underweight,” adding further pressure to investor sentiment following the earnings miss and guidance reduction.

KinderCare Learning Companies Company Profile

KinderCare Learning Companies Inc is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc is based in PORTLAND, Ore.