Carter's, Inc. $CRI Shares Acquired by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors increased its Carter’s stake by 36.6% in the first quarter, purchasing 472,786 additional shares to own 1.77 million shares, or approximately 4.79% of the company.
• Carter’s reported a strong second quarter, with adjusted EPS of $0.26 versus the $0.06 consensus estimate and revenue of $615.5 million, up 5.2% year over year and above expectations.
• Despite the earnings beat, third-quarter revenue guidance of approximately $750 million was below the $797 million analyst consensus. Analysts remain mixed, with the stock carrying an overall “Hold” rating and an average price target of $41.17.

Dimensional Fund Advisors LP increased its stake in shares of Carter's, Inc. (NYSE:CRI - Free Report) by 36.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,765,205 shares of the textile maker's stock after buying an additional 472,786 shares during the quarter. Dimensional Fund Advisors LP owned about 4.79% of Carter's worth $63,121,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the stock. UMB Bank n.a. lifted its stake in Carter's by 445.8% in the fourth quarter. UMB Bank n.a. now owns 775 shares of the textile maker's stock valued at $25,000 after buying an additional 633 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its position in shares of Carter's by 555.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 1,115 shares of the textile maker's stock worth $31,000 after acquiring an additional 945 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Carter's by 202.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,486 shares of the textile maker's stock worth $45,000 after acquiring an additional 995 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in shares of Carter's by 21.8% in 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 during the period. Finally, State of Wyoming increased its holdings in shares of Carter's by 1,380.6% in the 4th quarter. State of Wyoming now owns 2,132 shares of the textile maker's stock worth $69,000 after acquiring an additional 1,988 shares during the period.

More Carter's News

Here are the key news stories impacting Carter's this week:

• Positive Sentiment: Carter’s reported second-quarter adjusted earnings of $0.26 per share, substantially above analyst estimates of approximately $0.02–$0.06 and up from $0.17 a year earlier. Carter's Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Revenue increased 5.2% year over year to $615.5 million, exceeding the roughly $605.7 million consensus estimate. Management also said adjusted operating profit rose 54% and that results exceeded its prior outlook. Carter's Reports Second Quarter Fiscal 2026 Results
• Neutral Sentiment: Full-year 2026 revenue guidance was maintained or updated at approximately $3.0 billion, broadly in line with consensus. The available guidance report did not provide a comparable full-year EPS figure. Carter's Q2 2026 Earnings Call Transcript
• Negative Sentiment: Third-quarter revenue guidance of approximately $750 million fell well below the analyst consensus of $797 million. The shortfall creates concern about near-term sales momentum despite the strong second-quarter performance. Carter's Q2 Sales and Guidance

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Weiss Ratings lowered shares of Carter's from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Zacks Research lowered shares of Carter's from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 25th. Wells Fargo & Company raised Carter's from an "underweight" rating to an "equal weight" rating and lifted their price target for the company from $30.00 to $42.00 in a report on Wednesday, June 17th. Wall Street Zen upgraded Carter's from a "hold" rating to a "buy" rating in a research report on Sunday. Finally, Citigroup reiterated a "buy" rating on shares of Carter's in a research report on Tuesday, July 21st. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $41.17.

Carter's Price Performance

Shares of NYSE:CRI opened at $38.65 on Friday. The stock has a market cap of $1.42 billion, a price-to-earnings ratio of 7.24 and a beta of 0.86. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.80 and a quick ratio of 1.72. Carter's, Inc. has a 12 month low of $23.38 and a 12 month high of $44.44. The stock's 50 day moving average price is $39.85 and its 200 day moving average price is $37.62.

Carter's (NYSE:CRI - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The textile maker reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.06 by $0.20. Carter's had a return on equity of 13.06% and a net margin of 3.07%.The firm had revenue of $615.49 million during the quarter, compared to analyst estimates of $605.68 million. During the same period last year, the company posted $0.17 EPS. The firm's quarterly revenue was up 5.2% on a year-over-year basis. Equities research analysts anticipate that Carter's, Inc. will post 3.09 earnings per share for the current fiscal year.

Carter's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Tuesday, May 26th were issued a $0.25 dividend. The ex-dividend date was Tuesday, May 26th. This represents a $1.00 annualized dividend and a dividend yield of 2.6%. Carter's's dividend payout ratio is 40.32%.

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.

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