Carter's, Inc. $CRI Holdings Cut by RWWM Inc.

Key Points

• RWWM Inc. cut its Carter's stake by 48.1% in the first quarter, selling more than 2.17 million shares. Even after the reduction, Carter's remained its 7th largest holding and made up about 6.1% of its portfolio.
• Wall Street sentiment is mixed but leaning neutral, with analysts issuing four Buy ratings, three Hold ratings, and two Sell ratings. The stock’s consensus rating is currently Hold, with an average price target of $41.17.
• Carter's reported stronger-than-expected quarterly results, posting EPS of $0.39 versus the $0.13 estimate and revenue of $681.11 million, up 8.1% year over year. The company also pays a quarterly dividend of $0.25 per share, equal to a 2.6% annual yield.

RWWM Inc. decreased its holdings in shares of Carter's, Inc. (NYSE:CRI - Free Report) by 48.1% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,342,359 shares of the textile maker's stock after selling 2,173,964 shares during the period. Carter's accounts for about 6.1% of RWWM Inc.'s holdings, making the stock its 7th largest holding. RWWM Inc. owned about 6.35% of Carter's worth $83,763,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Salem Investment Counselors Inc. raised its holdings in Carter's by 37.1% in the 4th quarter. Salem Investment Counselors Inc. now owns 125,115 shares of the textile maker's stock worth $4,057,000 after purchasing an additional 33,845 shares in the last quarter. UBS Group AG boosted its position in shares of Carter's by 29.6% in the 4th quarter. UBS Group AG now owns 1,349,777 shares of the textile maker's stock worth $43,773,000 after purchasing an additional 308,347 shares in the last quarter. Wolverine Asset Management LLC bought a new position in Carter's during the 4th quarter valued at approximately $906,000. Cinctive Capital Management LP purchased a new position in Carter's during the third quarter valued at $779,000. Finally, New Age Alpha Advisors LLC purchased a new position in Carter's during the fourth quarter valued at $2,156,000.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CRI. Weiss Ratings cut Carter's from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Needham & Company LLC began coverage on Carter's in a research report on Thursday, March 26th. They issued a "hold" rating for the company. UBS Group reissued a "buy" rating on shares of Carter's in a research report on Wednesday, July 8th. The Goldman Sachs Group upgraded shares of Carter's from a "neutral" rating to a "buy" rating and set a $38.00 price objective for the company in a research note on Thursday, April 9th. Finally, Monness Crespi & Hardt lifted their target price on shares of Carter's from $45.00 to $50.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $41.17.

Carter's Price Performance

CRI opened at $38.04 on Wednesday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.72 and a current ratio of 2.80. The stock has a market capitalization of $1.40 billion, a P/E ratio of 15.34 and a beta of 0.86. The company's 50-day simple moving average is $39.01 and its two-hundred day simple moving average is $37.18. Carter's, Inc. has a 52-week low of $23.38 and a 52-week high of $44.44.

Carter's (NYSE:CRI - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The textile maker reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.26. Carter's had a net margin of 3.07% and a return on equity of 13.06%. The firm had revenue of $681.11 million during the quarter, compared to analyst estimates of $660.59 million. During the same period in the previous year, the business posted $0.66 earnings per share. The business's revenue for the quarter was up 8.1% on a year-over-year basis. Carter's has set its Q2 2026 guidance at 0.020-0.060 EPS. As a group, analysts predict that Carter's, Inc. will post 3.09 EPS for the current year.

Carter's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 26th were paid a dividend of $0.25 per share. The ex-dividend date was Tuesday, May 26th. This represents a $1.00 dividend on an annualized basis and a yield of 2.6%. Carter's's payout ratio is currently 40.32%.

Carter's 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.

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