Carter's, Inc. $CRI Shares Bought by Wedge Capital Management L L P NC

Key Points

• Wedge Capital Management increased its holdings in Carter's, Inc. by 46.2% in the second quarter, acquiring 23,983 additional shares and bringing its total to approximately 75,928 shares valued at $2.29 million.
• Brokerages have recently downgraded Carter's stock, with Barclays and UBS Group reducing their price targets to $22.00 and $26.00 respectively, leading to an average consensus target price of $30.25.
• Carter's reported quarterly earnings with a missed EPS estimate of $0.17, significantly below the consensus estimate of $0.43, despite a revenue increase of 3.7% year-over-year.

Wedge Capital Management L L P NC grew its holdings in Carter's, Inc. (NYSE:CRI - Free Report) by 46.2% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 75,928 shares of the textile maker's stock after buying an additional 23,983 shares during the period. Wedge Capital Management L L P NC owned approximately 0.21% of Carter's worth $2,288,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently added to or reduced their stakes in CRI. Allworth Financial LP increased its holdings 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 valued at $28,000 after acquiring an additional 548 shares in the last quarter. Parallel Advisors LLC lifted its stake in shares of Carter's by 80.9% in the 1st quarter. Parallel Advisors LLC now owns 1,062 shares of the textile maker's stock worth $43,000 after acquiring an additional 475 shares during the period. Headlands Technologies LLC purchased a new position in Carter's in the first quarter valued at about $58,000. US Bancorp DE raised its stake in shares of Carter's by 45.0% during the 1st quarter. US Bancorp DE now owns 1,408 shares of the textile maker's stock worth $58,000 after buying an additional 437 shares during the last quarter. Finally, Security National Bank acquired a new position in Carter's during the first quarter valued at approximately $69,000.

Carter's Stock Down 5.4%

Shares of Carter's stock traded down $1.70 during trading on Monday, reaching $29.57. 1,920,111 shares of the company traded hands, compared to its average volume of 1,284,372. Carter's, Inc. has a 1-year low of $23.38 and a 1-year high of $68.69. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.20 and a quick ratio of 1.03. The company has a 50 day moving average price of $28.04 and a 200-day moving average price of $32.54. The firm has a market capitalization of $1.08 billion, a PE ratio of 7.84 and a beta of 1.02.

Carter's (NYSE:CRI - Get Free Report) last posted its earnings results on Friday, July 25th. The textile maker reported $0.17 earnings per share (EPS) 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 company had revenue of $585.31 million for the quarter, compared to analysts' expectations of $563.24 million. During the same quarter in the prior year, the company earned $0.76 EPS. The company's revenue was up 3.7% on a year-over-year basis. As a group, equities research analysts expect that Carter's, Inc. will post 5.15 earnings per share for the current fiscal year.

Carter's Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 12th. Investors of record on Tuesday, August 26th were given a $0.25 dividend. The ex-dividend date was Tuesday, August 26th. This represents a $1.00 dividend on an annualized basis and a yield of 3.4%. Carter's's dividend payout ratio (DPR) is currently 26.53%.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Barclays dropped their price objective on shares of Carter's from $25.00 to $22.00 and set an "underweight" rating on the stock in a report on Tuesday, July 29th. UBS Group decreased their price target on Carter's from $32.00 to $26.00 and set a "neutral" rating on the stock in a research report on Monday, July 28th. Finally, Zacks Research downgraded shares of Carter's from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 13th. Two investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Strong Sell" and a consensus price target of $30.25.

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.