Principal Financial Group Inc. Sells 143,127 Shares of Carter's, Inc. $CRI

Key Points

• Principal Financial Group reduced its Carter’s stake by 44.7%, selling 143,127 shares during the first quarter and retaining 177,124 shares valued at approximately $6.3 million.
• Carter’s reported stronger-than-expected quarterly results, with earnings of $0.39 per share versus the $0.13 consensus estimate and revenue of $681.1 million, up 8.1% year over year.
• The company maintained a quarterly dividend of $0.25 per share, equivalent to a 2.6% annualized yield. Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $41.17.

Principal Financial Group Inc. cut its position in shares of Carter's, Inc. (NYSE:CRI - Free Report) by 44.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 177,124 shares of the textile maker's stock after selling 143,127 shares during the quarter. Principal Financial Group Inc. owned approximately 0.48% of Carter's worth $6,334,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the company. UBS Group AG boosted its stake 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 buying an additional 308,347 shares during the last quarter. Wolverine Asset Management LLC purchased a new stake in shares of Carter's during the fourth quarter valued at approximately $906,000. New Age Alpha Advisors LLC bought a new stake in Carter's during the fourth quarter worth $2,156,000. Louisiana State Employees Retirement System bought a new stake in Carter's during the first quarter worth $579,000. Finally, Royce & Associates LP boosted its position in Carter's by 26.4% in the fourth quarter. Royce & Associates LP now owns 244,360 shares of the textile maker's stock worth $7,925,000 after purchasing an additional 51,088 shares during the last quarter.

Carter's Stock Performance

Shares of CRI opened at $38.72 on Tuesday. Carter's, Inc. has a 1 year low of $23.38 and a 1 year high of $44.44. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.80 and a quick ratio of 1.72. The stock's fifty day moving average price is $39.71 and its two-hundred day moving average price is $37.54. The firm has a market cap of $1.43 billion, a PE ratio of 15.61 and a beta of 0.86.

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

Carter's Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research analysts have issued reports on CRI shares. Wells Fargo & Company upgraded Carter's from an "underweight" rating to an "equal weight" rating and upped their price objective for the company from $30.00 to $42.00 in a research note on Wednesday, June 17th. Monness Crespi & Hardt lifted their target price on Carter's from $45.00 to $50.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Citigroup reissued a "buy" rating on shares of Carter's in a report on Tuesday, July 21st. 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 report on Thursday, April 9th. Finally, Weiss Ratings lowered shares of Carter's from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Four equities 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, Carter's has a consensus rating of "Hold" and an average price target of $41.17.

About Carter's

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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