Vanguard Group Inc. Cuts Stake in Carter's, Inc. $CRI

Key Points

• Vanguard Group Inc. reduced its stake in Carter's, Inc. by 1.9%, resulting in ownership of approximately 10.49% of the company's total shares.
• Carter's reported a net margin of 4.79%, but its quarterly earnings fell short of estimates, with an EPS of $0.17, missing the expected $0.43.
• The company announced a quarterly dividend of $0.25 per share, translating to an annual yield of 3.9%.

Vanguard Group Inc. lowered its position in Carter's, Inc. (NYSE:CRI - Free Report) by 1.9% during the first quarter, according to its most recent filing with the SEC. The firm owned 3,822,670 shares of the textile maker's stock after selling 72,879 shares during the period. Vanguard Group Inc. owned 10.49% of Carter's worth $156,347,000 as of its most recent filing with the SEC.

Other large investors also recently modified their holdings of the company. Hsbc Holdings PLC increased its stake in shares of Carter's by 7.1% in the 4th quarter. Hsbc Holdings PLC now owns 5,217 shares of the textile maker's stock valued at $279,000 after acquiring an additional 347 shares in the last quarter. US Bancorp DE boosted its stake in 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 acquiring an additional 437 shares in the last quarter. Parallel Advisors LLC grew its holdings in Carter's by 80.9% in the first quarter. Parallel Advisors LLC now owns 1,062 shares of the textile maker's stock worth $43,000 after purchasing an additional 475 shares during the period. Colonial Trust Co SC acquired a new stake in Carter's in the fourth quarter worth $29,000. Finally, Allworth Financial LP increased its stake in Carter's by 313.1% in the first quarter. Allworth Financial LP now owns 723 shares of the textile maker's stock valued at $28,000 after purchasing an additional 548 shares in the last quarter.

Wall Street Analyst Weigh In

CRI has been the topic of a number of research analyst reports. Barclays cut their price objective 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. Zacks Research downgraded Carter's from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 13th. UBS Group reduced their price objective on Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Monday, July 28th. Finally, Wells Fargo & Company boosted their price objective on Carter's from $25.00 to $28.00 and gave the company an "underweight" rating in a report on Wednesday, May 14th. Two investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Strong Sell" and a consensus price target of $30.25.

Carter's Price Performance

CRI traded up $0.31 during trading on Tuesday, reaching $26.98. The stock had a trading volume of 1,718,356 shares, compared to its average volume of 1,413,667. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.03 and a current ratio of 2.20. The business has a 50-day moving average of $28.69 and a 200-day moving average of $35.01. Carter's, Inc. has a one year low of $23.38 and a one year high of $71.99. The stock has a market cap of $982.95 million, a PE ratio of 7.16 and a beta of 0.99.

Carter's (NYSE:CRI - Get Free Report) last posted its quarterly earnings results 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). Carter's had a return on equity of 20.68% and a net margin of 4.79%.The business had revenue of $585.31 million during the quarter, compared to the consensus estimate of $563.24 million. During the same period in the prior year, the firm earned $0.76 earnings per share. The business's revenue for the quarter was up 3.7% on a year-over-year basis. As a group, equities research analysts anticipate that Carter's, Inc. will post 5.15 EPS for the current fiscal year.

Carter's Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Tuesday, August 26th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, August 26th. This represents a $1.00 dividend on an annualized basis and a yield of 3.7%. Carter's's dividend payout ratio (DPR) is presently 26.53%.

Carter's Company 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.