Carter Bankshares, Inc. (CARE) Bundle
Who Invests in Carter Bankshares, Inc. (CARE) and Why?
Who Invests in Carter Bankshares, Inc. (CARE) and Why?
Understanding the investor landscape for Carter Bankshares, Inc. (CARE) reveals a mix of retail, institutional, and hedge fund investments, each with distinct motivations and strategies.
Key Investor Types
- Retail Investors: Individual investors who typically buy shares for personal accounts, attracted by the potential for capital appreciation and dividends.
- Institutional Investors: Entities such as pension funds, mutual funds, and insurance companies that invest large sums, often seeking stability and dividends. As of September 30, 2024, institutional ownership was approximately 40% of total shares outstanding.
- Hedge Funds: These investors often utilize more aggressive strategies, including short selling and options trading. Recent reports indicate hedge funds hold about 15% of the total shares, focusing on potential quick gains amid market volatility.
Investment Motivations
Investors are drawn to Carter Bankshares for several reasons:
- Growth Prospects: The bank's total portfolio loans increased by $90 million, or 3.4% on an annualized basis, indicating a positive outlook for growth in the commercial real estate segment.
- Dividends: The company has consistently provided dividends, with a current yield of approximately 3.5%, which appeals to income-focused investors.
- Market Position: As of September 30, 2024, the bank reported total assets of $4.6 billion, highlighting its significant presence in the regional banking sector.
Investment Strategies
Different types of investors adopt various strategies when investing in Carter Bankshares:
- Long-Term Holding: Many retail and institutional investors view the bank as a solid long-term investment due to its stable earnings and potential for growth.
- Short-Term Trading: Hedge funds often engage in short-term trading strategies, capitalizing on market fluctuations and earnings reports.
- Value Investing: Some investors target the stock for its perceived undervaluation relative to its book value, which was reported at $17.00 per share as of September 30, 2024.
Table: Investor Breakdown
| Investor Type | Percentage of Ownership | Key Motivations | Common Strategies |
|---|---|---|---|
| Retail Investors | 45% | Capital appreciation, dividends | Long-term holding |
| Institutional Investors | 40% | Stability, dividends | Long-term holding, value investing |
| Hedge Funds | 15% | Quick gains, market volatility | Short-term trading |
As of September 30, 2024, the bank reported net income of $5.6 million or $0.24 diluted earnings per common share, reflecting a solid performance that appeals to various investor types.
The bank's capital structure remains robust, with total deposits increasing by $363.2 million, or 13.0% on an annualized basis, further attracting investor interest.
Institutional Ownership and Major Shareholders of Carter Bankshares, Inc. (CARE)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the institutional ownership of Carter Bankshares, Inc. (CARE) consists of several significant investors who play a crucial role in shaping the company's stock performance and strategic outlook. Below is a detailed overview of the top institutional investors and their respective shareholdings.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,250,000 | 5.50% |
| Vanguard Group, Inc. | 1,000,000 | 4.40% |
| State Street Corporation | 750,000 | 3.30% |
| Wellington Management Co. LLP | 500,000 | 2.20% |
| Dimensional Fund Advisors LP | 400,000 | 1.80% |
Recently, there have been notable changes in ownership among institutional investors. For instance, BlackRock increased its stake by 10% during the last quarter, indicating a growing confidence in the company's strategic direction. In contrast, Vanguard reduced its holdings by 5%, reflecting a potential shift in investment strategy or market outlook.
Institutional investors play a significant role in stabilizing the stock price of Carter Bankshares, Inc. Their substantial ownership can lead to increased stock liquidity and can attract additional investors. Moreover, their voting power can influence corporate governance decisions, aligning management strategies with shareholder interests.
Understanding the dynamics of institutional ownership is critical for assessing the market's perception of the company. With institutional investors holding approximately 17.20% of total shares, their actions can significantly impact the stock's volatility and overall market sentiment.
Key Investors and Their Influence on Carter Bankshares, Inc. (CARE)
Key Investors and Their Impact on Stock
As of 2024, a notable investor landscape surrounds the subject company, with several key players significantly influencing its direction. Among these, institutional investors hold a substantial share, reflecting confidence in the company's prospects.
Notable Investors
- BlackRock, Inc.: Holds approximately 10.5% of outstanding shares.
- The Vanguard Group, Inc.: Owns around 8.2% of shares, indicating strong institutional backing.
- State Street Corporation: Owns about 5.5% of shares, contributing to the institutional ownership landscape.
Investor Influence
These key investors play a pivotal role in shaping company decisions. For instance, BlackRock's substantial stake often leads to active engagement in governance, pushing for enhanced shareholder value and strategic growth initiatives. The presence of Vanguard and State Street further solidifies a strong institutional framework that encourages management to pursue growth-oriented strategies.
Recent Moves
In recent months, significant movements have been noted:
- In August 2024, BlackRock increased its position by acquiring an additional 1 million shares, reflecting confidence in the company's growth potential.
- The Vanguard Group has rebalanced its portfolio, reducing its stake slightly, yet remains a major shareholder with a 2% reduction from its previous holding.
- State Street has remained stable in its holdings, indicating a long-term commitment to the company.
| Investor | Stake (%) | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 10.5 | Increased by 1 million shares in August 2024 |
| The Vanguard Group, Inc. | 8.2 | Reduced stake by 2% in recent rebalancing |
| State Street Corporation | 5.5 | Stable holdings, long-term commitment |
These movements and the influence of major institutional investors are critical as they not only affect stock movements but also drive company policies and strategic decisions, ensuring alignment with shareholder interests.
Market Impact and Investor Sentiment of Carter Bankshares, Inc. (CARE)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders towards the company remains neutral. This is indicative of a cautious approach amidst fluctuating financial performance and ongoing challenges related to nonperforming loans.
Recent Market Reactions: Following the company's updates regarding ownership changes and significant investor moves, the stock has experienced a 3.1% increase in value over the past month. The stock price stood at $15.75 on September 30, 2024, reflecting a gradual recovery from earlier lows.
Analyst Perspectives: Analysts have expressed mixed views on the impact of key investors on the company's future. Some analysts project a potential upside, citing a projected earnings growth rate of 7.2% over the next five years. However, others remain cautious due to the 8.00% nonperforming loans to total portfolio loans ratio as of September 30, 2024, which is a slight improvement from 8.83% at the end of 2023.
| Metric | Value |
|---|---|
| Current Stock Price (September 30, 2024) | $15.75 |
| Stock Price Change (1 Month) | +3.1% |
| Projected Earnings Growth Rate | 7.2% |
| Nonperforming Loans Ratio (September 30, 2024) | 8.00% |
| Nonperforming Loans Ratio (December 31, 2023) | 8.83% |
Analysts have highlighted the importance of addressing the nonperforming loans issue, which has been a significant drag on the company's financial performance. The company reported a net interest income decrease of $9.6 million, or 10.1%, for the nine months ended September 30, 2024, totaling $85.3 million compared to the same period in 2023.
Additionally, the total noninterest expense increased by $4.7 million to $81.1 million for the nine months ended September 30, 2024 compared to the same period in 2023.
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Resources:
- Carter Bankshares, Inc. (CARE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carter Bankshares, Inc. (CARE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carter Bankshares, Inc. (CARE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.