Charles Schwab Investment Management Inc. Raises Stock Position in Carter's, Inc. $CRI

Key Points

• Charles Schwab Investment Management Inc. increased its holdings in Carter's, Inc. by 6.5%, now owning 1,327,040 shares valued at approximately $54.3 million.
• Carter's reported a missed earnings per share estimate for the last quarter, posting only $0.17 compared to the expected $0.43, despite revenue exceeding projections.
• The company has declared a quarterly dividend of $0.25 per share, reflecting an annual yield of 3.8%, with a payout ratio of 26.53%.

Charles Schwab Investment Management Inc. boosted its stake in Carter's, Inc. (NYSE:CRI - Free Report) by 6.5% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,327,040 shares of the textile maker's stock after purchasing an additional 81,097 shares during the quarter. Charles Schwab Investment Management Inc. owned about 3.64% of Carter's worth $54,276,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Colonial Trust Co SC purchased a new stake in Carter's in the 4th quarter worth $29,000. Allworth Financial LP lifted its stake in Carter's by 313.1% in the 1st quarter. Allworth Financial LP now owns 723 shares of the textile maker's stock worth $28,000 after purchasing an additional 548 shares in the last quarter. True Wealth Design LLC lifted its stake in Carter's by 173.0% in the 4th quarter. True Wealth Design LLC now owns 901 shares of the textile maker's stock worth $49,000 after purchasing an additional 571 shares in the last quarter. Parallel Advisors LLC lifted its stake in Carter's by 80.9% in the 1st quarter. Parallel Advisors LLC now owns 1,062 shares of the textile maker's stock worth $43,000 after purchasing an additional 475 shares in the last quarter. Finally, Quarry LP lifted its stake in Carter's by 351.8% in the 4th quarter. Quarry LP now owns 1,351 shares of the textile maker's stock worth $73,000 after purchasing an additional 1,052 shares in the last quarter.

Analyst Ratings Changes

CRI has been the topic of several recent research reports. UBS Group decreased their target price on shares of Carter's from $32.00 to $26.00 and set a "neutral" rating on the stock in a research report on Monday, July 28th. Zacks Research cut shares of Carter's from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 13th. Barclays decreased their target price on shares of Carter's from $25.00 to $22.00 and set an "underweight" rating on the stock in a research report on Tuesday, July 29th. Finally, Wells Fargo & Company upped their target price on shares of Carter's from $25.00 to $28.00 and gave the company an "underweight" rating in a research report on Wednesday, May 14th. Two research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Carter's presently has a consensus rating of "Strong Sell" and an average price target of $30.25.

Carter's Trading Down 0.8%

NYSE:CRI traded down $0.21 during mid-day trading on Tuesday, hitting $25.48. 671,263 shares of the stock traded hands, compared to its average volume of 1,541,687. The stock has a market capitalization of $928.29 million, a price-to-earnings ratio of 6.76 and a beta of 0.99. Carter's, Inc. has a 52 week low of $23.38 and a 52 week high of $71.99. The firm's 50 day moving average is $29.36 and its two-hundred day moving average is $35.94. The company has a quick ratio of 1.03, a current ratio of 2.20 and a debt-to-equity ratio of 0.58.

Carter's (NYSE:CRI - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The textile maker reported $0.17 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.26). The firm had revenue of $585.31 million for the quarter, compared to the consensus estimate of $563.24 million. Carter's had a net margin of 4.79% and a return on equity of 20.68%. The business's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.76 earnings per share. On average, equities research analysts predict that Carter's, Inc. will post 5.15 earnings per share for the current year.

Carter's Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 12th. Stockholders of record on Tuesday, August 26th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.9%. Carter's's dividend payout ratio (DPR) is presently 26.53%.

Carter's Profile

Carter's, Inc engages in the business of brand marketing of young children's apparel. It operates through the following segments: the United States (US) Retail, US Wholesale, and International. The US Retail segment includes selling products through retail stores and ecommerce websites. The US Wholesale segment focuses on wholesale partners.