Graham Capital Management L.P. Takes $2.45 Million Position in Carter's, Inc. $CRI

Key Points

• Graham Capital Management L.P. has acquired a new stake in Carter's, Inc., purchasing 59,931 shares valued at approximately $2.45 million, representing 0.16% ownership.
• Despite recent investments, analysts are showing caution as Barclays, Wells Fargo, and UBS have downgraded their target prices for Carter's, indicating a "Strong Sell" consensus rating.
• Carter's has recently cut its quarterly dividend to $0.25 per share, with an upcoming ex-dividend date on August 26th, representing an annual yield of 3.5%.

Graham Capital Management L.P. acquired a new position in shares of Carter's, Inc. (NYSE:CRI - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 59,931 shares of the textile maker's stock, valued at approximately $2,451,000. Graham Capital Management L.P. owned 0.16% of Carter's at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of CRI. Allworth Financial LP boosted its position in shares of Carter's by 313.1% during the first quarter. Allworth Financial LP now owns 723 shares of the textile maker's stock worth $28,000 after buying an additional 548 shares during the period. Colonial Trust Co SC acquired a new stake in shares of Carter's in the fourth quarter valued at approximately $29,000. Parallel Advisors LLC lifted its position in shares of Carter's by 80.9% in the first quarter. Parallel Advisors LLC now owns 1,062 shares of the textile maker's stock valued at $43,000 after buying an additional 475 shares during the last quarter. Headlands Technologies LLC bought a new position in shares of Carter's during the first quarter worth approximately $58,000. Finally, US Bancorp DE increased its stake in shares of Carter's by 45.0% during the first quarter. US Bancorp DE now owns 1,408 shares of the textile maker's stock worth $58,000 after purchasing an additional 437 shares during the period.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CRI. Barclays lowered their target price on Carter's from $25.00 to $22.00 and set an "underweight" rating on the stock in a research note on Tuesday, July 29th. Zacks Research lowered Carter's from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 13th. Wells Fargo & Company raised their price objective on Carter's from $25.00 to $28.00 and gave the stock an "underweight" rating in a research note on Wednesday, May 14th. Finally, UBS Group lowered their price objective on Carter's from $32.00 to $26.00 and set a "neutral" rating on the stock in a research note on Monday, July 28th. Two equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Carter's currently has an average rating of "Strong Sell" and an average target price of $30.25.

Carter's Trading Up 0.1%

CRI traded up $0.04 during midday trading on Friday, hitting $28.66. 1,104,528 shares of the company were exchanged, compared to its average volume of 1,271,968. The firm has a market capitalization of $1.04 billion, a P/E ratio of 7.60 and a beta of 1.02. Carter's, Inc. has a 1-year low of $23.38 and a 1-year high of $71.99. The firm's 50 day moving average price is $28.40 and its 200-day moving average price is $33.81. 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 announced its 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 company had revenue of $585.31 million for the quarter, compared to analyst estimates of $563.24 million. Carter's had a return on equity of 20.68% and a net margin of 4.79%.The firm's quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.76 earnings per share. As a group, equities analysts forecast that Carter's, Inc. will post 5.15 EPS for the current fiscal year.

Carter's Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Stockholders of record on Tuesday, August 26th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Tuesday, August 26th. Carter's's payout ratio is currently 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.