Squarepoint Ops LLC Boosts Stock Position in Carter's, Inc. $CRI

Key Points

• Squarepoint Ops LLC more than doubled its Carter’s stake in the second quarter, increasing holdings by 114.7% to 97,709 shares valued at approximately $4.0 million. Other institutional investors, including Invesco, HSBC and Royal Bank of Canada, also raised their positions.
• Analyst sentiment improved, with Wells Fargo upgrading the stock to “equal weight,” Zacks Research moving it to “strong buy,” and BMO Capital Markets initiating coverage with an “outperform” rating. Carter’s has a consensus “Moderate Buy” rating and an average price target of $40.88.
• Carter’s exceeded quarterly earnings and revenue expectations, reporting $0.26 in EPS on $615.49 million in revenue, while revenue rose 5.2% year over year. The company also declared a quarterly dividend of $0.25 per share, representing a 3.3% annualized yield.

Squarepoint Ops LLC raised its holdings in Carter's, Inc. (NYSE:CRI - Free Report) by 114.7% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 97,709 shares of the textile maker's stock after purchasing an additional 52,193 shares during the period. Squarepoint Ops LLC owned about 0.27% of Carter's worth $4,022,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in CRI. Royal Bank of Canada increased its stake in shares of Carter's by 50.2% in the first quarter. Royal Bank of Canada now owns 40,649 shares of the textile maker's stock worth $1,663,000 after buying an additional 13,594 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Carter's by 5.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 120,964 shares of the textile maker's stock valued at $4,947,000 after acquiring an additional 6,195 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in Carter's by 4.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 16,482 shares of the textile maker's stock worth $497,000 after acquiring an additional 734 shares in the last quarter. Hsbc Holdings PLC grew its holdings in Carter's by 71.5% during the 2nd quarter. Hsbc Holdings PLC now owns 9,390 shares of the textile maker's stock worth $282,000 after acquiring an additional 3,915 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in Carter's by 30.4% during the 2nd quarter. Invesco Ltd. now owns 223,731 shares of the textile maker's stock worth $6,741,000 after acquiring an additional 52,103 shares in the last quarter.

Analyst Upgrades and Downgrades

A number of research firms recently commented on CRI. Wells Fargo & Company upgraded Carter's from an "underweight" rating to an "equal weight" rating and lifted their price target for the stock from $30.00 to $42.00 in a research note on Wednesday, June 17th. Weiss Ratings upgraded Carter's from a "sell (d+)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Zacks Research raised Carter's from a "hold" rating to a "strong-buy" rating in a report on Friday, August 21st. UBS Group reiterated a "buy" rating on shares of Carter's in a research report on Wednesday, July 8th. Finally, BMO Capital Markets started coverage on Carter's in a report on Tuesday. They issued an "outperform" rating and a $40.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Carter's has a consensus rating of "Moderate Buy" and an average target price of $40.88.

Carter's Stock Up 1.0%

NYSE:CRI opened at $30.50 on Friday. The firm has a market capitalization of $1.12 billion, a PE ratio of 5.71, a price-to-earnings-growth ratio of 3.43 and a beta of 0.84. The stock has a 50 day moving average of $36.92 and a 200-day moving average of $37.28. Carter's, Inc. has a 52 week low of $27.15 and a 52 week high of $44.44. The company has a current ratio of 2.47, a quick ratio of 1.50 and a debt-to-equity ratio of 0.55.

Carter's (NYSE:CRI - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The textile maker reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.20. Carter's had a return on equity of 12.78% and a net margin of 6.55%.The business had revenue of $615.49 million for the quarter, compared to analysts' expectations of $605.68 million. During the same period in the prior year, the firm earned $0.17 EPS. The business's quarterly revenue was up 5.2% on a year-over-year basis. Analysts predict that Carter's, Inc. will post 3.28 EPS for the current year.

Carter's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Tuesday, September 1st. Carter's's dividend payout ratio (DPR) is presently 18.73%.

About Carter's

Carter's, Inc NYSE: CRI is a specialty retailer and branded marketer of apparel, accessories and related products for babies and young children. The company's portfolio includes Carter's, OshKosh B'gosh, Skip Hop and Little Planet, offering items such as bodysuits, sleepwear, playwear, footwear, outerwear, accessories, baby gear and nursery products.

Founded in 1865 by William Carter, the company has developed into a major children's apparel business. Carter's products are sold through company-operated retail stores, e-commerce websites and wholesale partners, including department stores, mass merchants, specialty retailers and other distribution channels.

The company primarily serves customers in the United States and Canada, while also reaching international markets through select wholesale, licensing and distribution arrangements.

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