Dean Capital Management Boosts Holdings in Carter's, Inc. $CRI

Key Points

• Dean Capital Management increased its stake in Carter's, Inc. by 25.8% in Q1 2023, now holding 54,606 shares valued at approximately $2.2 million.
• Carter's reported earnings of $0.17 per share for the last quarter, significantly missing the consensus estimate of $0.43, despite revenue surpassing expectations at $585.31 million.
• The company announced a quarterly dividend of $0.25, representing a 3.5% dividend yield, set for payment on September 12th, while experiencing a consensus rating of "Strong Sell" from equity analysts.

Dean Capital Management boosted its position in shares of Carter's, Inc. (NYSE:CRI - Free Report) by 25.8% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 54,606 shares of the textile maker's stock after buying an additional 11,215 shares during the quarter. Carter's accounts for approximately 1.0% of Dean Capital Management's investment portfolio, making the stock its 24th largest position. Dean Capital Management owned 0.15% of Carter's worth $2,233,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently bought and sold shares of the company. FORA Capital LLC purchased a new position in Carter's during the first quarter worth $718,000. GAMMA Investing LLC boosted its stake in Carter's by 38.2% during the first quarter. GAMMA Investing LLC now owns 2,004 shares of the textile maker's stock worth $82,000 after buying an additional 554 shares during the period. Aigen Investment Management LP purchased a new position in Carter's during the first quarter worth $1,526,000. Blueshift Asset Management LLC purchased a new position in Carter's during the first quarter worth $780,000. Finally, Jefferies Financial Group Inc. purchased a new position in Carter's during the first quarter worth $1,199,000.

Carter's Stock Up 0.3%

Shares of CRI opened at $28.83 on Tuesday. The firm has a market capitalization of $1.05 billion, a P/E ratio of 7.65 and a beta of 1.02. Carter's, Inc. has a 12-month low of $23.38 and a 12-month high of $71.99. The company has a current ratio of 2.20, a quick ratio of 1.03 and a debt-to-equity ratio of 0.58. The firm has a fifty day moving average price of $28.37 and a 200-day moving average price of $33.40.

Carter's (NYSE:CRI - Get Free Report) last released its quarterly earnings data on Friday, July 25th. The textile maker reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.26). The firm had revenue of $585.31 million during 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 was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.76 earnings per share. Equities research analysts expect that Carter's, Inc. will post 5.15 earnings per share for the current year.

Carter's Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Tuesday, August 26th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Tuesday, August 26th. Carter's's payout ratio is presently 26.53%.

Analysts Set New Price Targets

Several research analysts have commented on CRI shares. Barclays dropped their price objective on shares of Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a research note on Tuesday, July 29th. Zacks Research lowered shares of Carter's from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 13th. Wells Fargo & Company boosted their target price on shares of Carter's from $25.00 to $28.00 and gave the company an "underweight" rating in a research note on Wednesday, May 14th. Finally, UBS Group lowered their target price on shares of Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Monday, July 28th. Two equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, Carter's presently has a consensus rating of "Strong Sell" and a consensus price target of $30.25.

About Carter's

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.

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