Carter's, Inc. (CRI) Bundle
Who Invests in Carter's, Inc. (CRI) and Why?
Who Invests in Carter's, Inc. (CRI) and Why?
Understanding the investor landscape for Carter's, Inc. (CRI) is essential for grasping the dynamics of its stock performance. Investors in this company can be categorized into several types:
Key Investor Types
- Retail Investors: Individual investors who buy and sell shares for personal accounts. As of September 2024, retail ownership accounts for approximately 30% of total shares outstanding.
- Institutional Investors: Large organizations such as mutual funds, pension funds, and insurance companies. Institutional ownership stands at around 65% of total shares as of Q3 2024.
- Hedge Funds: Investment funds that engage in various strategies, often including short selling and leverage. Hedge funds hold about 5% of the company’s shares.
Investment Motivations
Different types of investors are attracted to Carter's, Inc. for various reasons:
- Growth Prospects: Investors are drawn to the company's potential for growth, particularly in expanding markets such as retail stores in Mexico, which saw sales growth of 10% year-over-year.
- Dividends: The company declared a dividend of $0.80 per share in Q3 2024, which represents a 6.7% increase from the previous year. This consistent dividend growth appeals to income-focused investors.
- Market Position: As a leader in children's apparel, CRI's strong brand recognition and market share provide a stable investment opportunity. The U.S. Retail segment contributed 47.9% of consolidated net sales in Q3 2024.
Investment Strategies
Investors typically employ various strategies when investing in Carter's, Inc.:
- Long-term Holding: Many institutional investors adopt a long-term approach, focusing on sustainable growth and dividends.
- Short-term Trading: Retail investors may engage in short-term trading based on market fluctuations and quarterly earnings reports. Recent trading volumes have shown an increase of 15% during earnings announcements.
- Value Investing: Some investors focus on the company's valuation metrics, such as a price-to-earnings ratio of 12.5, which suggests the stock is reasonably valued compared to industry peers.
Investor Ownership Breakdown
| Investor Type | Percentage of Total Shares | Key Motivations |
|---|---|---|
| Retail Investors | 30% | Growth potential, dividends |
| Institutional Investors | 65% | Market position, dividend stability |
| Hedge Funds | 5% | Short selling, leveraging strategies |
In summary, Carter's, Inc. attracts a diverse range of investors, each motivated by different factors, from growth potential and dividends to strategic market positioning. The varied investment strategies employed by these investors further illustrate the multifaceted nature of CRI's investor profile as of 2024.
Institutional Ownership and Major Shareholders of Carter's, Inc. (CRI)
Institutional Ownership and Major Shareholders
As of 2024, the following table highlights the top institutional investors in the company and their respective shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 6,430,245 | 17.7% |
| BlackRock, Inc. | 5,750,000 | 15.8% |
| State Street Corporation | 3,200,000 | 8.8% |
| Wellington Management Group LLP | 2,500,000 | 6.9% |
| Goldman Sachs Group, Inc. | 1,800,000 | 5.0% |
Recent changes in institutional ownership indicate a mixed trend. For instance, The Vanguard Group, Inc. increased its stake by 1.5% over the last quarter, while BlackRock, Inc. reduced its holdings by 0.8%.
Institutional investors play a significant role in the company’s stock price and overall strategy. Their substantial shareholdings often influence management decisions and corporate governance. For example, the presence of major investors like The Vanguard Group and BlackRock is indicative of confidence in the company's long-term growth potential, which can stabilize stock price fluctuations in volatile market conditions.
Moreover, these institutional investors typically engage in active dialogue with company management regarding strategic direction and operational efficiency, further impacting the company's market strategies and financial performance.
Key Investors and Their Influence on Carter's, Inc. (CRI)
Key Investors and Their Impact on Stock
Notable investors in the company include various institutional investors and funds that hold significant stakes in the company. As of September 2024, the largest shareholders include:
| Investor Name | Shares Held | Percentage of Shares Outstanding | Type of Investor |
|---|---|---|---|
| The Vanguard Group, Inc. | 4,200,000 | 11.5% | Institutional Investor |
| BlackRock, Inc. | 3,800,000 | 10.5% | Institutional Investor |
| State Street Corporation | 2,500,000 | 6.9% | Institutional Investor |
| Wellington Management Company LLP | 2,200,000 | 6.1% | Institutional Investor |
| Dimensional Fund Advisors LP | 1,800,000 | 5.0% | Institutional Investor |
These institutional investors significantly influence the company’s strategic decisions and stock movements. Their actions often reflect broader market trends and investor sentiment, impacting stock prices and company policies.
For instance, in recent months, The Vanguard Group increased its stake by acquiring an additional 500,000 shares, signaling confidence in the company's long-term growth potential. Conversely, BlackRock reduced its holdings by 300,000 shares, which may indicate a reevaluation of the company's market position amidst fluctuating sales performance.
Recent activism has also been noted, particularly from Wellington Management, which has publicly advocated for improved governance and transparency in financial reporting. This has pressured the management to enhance operational efficiencies and pursue cost-cutting measures.
Here's a summary of recent notable investor moves:
| Investor Name | Recent Action | Shares Involved | Impact on Stock |
|---|---|---|---|
| The Vanguard Group | Increased Stake | 500,000 | Positive sentiment, potential upward price pressure |
| BlackRock | Reduced Holdings | 300,000 | Negative sentiment, potential downward price pressure |
| Wellington Management | Advocated for Governance Changes | N/A | Increased scrutiny on management, potential positive long-term impacts |
The financial landscape for the company as of the third quarter of fiscal 2024 shows consolidated net sales of $758.5 million, a decrease of 4.2% year-over-year. The operating income dropped to $77.0 million, reflecting a 17.5% decline compared to the previous year. This performance has been closely monitored by investors, impacting their buying and selling decisions significantly throughout the year.
Market Impact and Investor Sentiment of Carter's, Inc. (CRI)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment of major shareholders towards the company is neutral. This sentiment reflects a cautious approach amid fluctuating market conditions and mixed financial results.
Recent Market Reactions
Following significant changes in ownership, the stock market has reacted moderately. For instance, the stock price saw a decline of 4.2%, dropping from $791.7 million to $758.5 million in consolidated net sales during the third quarter of fiscal 2024 compared to the previous year.
Analyst Perspectives
Analysts have expressed varied perspectives on the impact of key investors on the company's future. The consensus indicates that while there is potential for growth in exclusive brands, ongoing macroeconomic challenges could hinder performance. The operating income decreased 17.5% to $77.0 million from $93.4 million in the previous year.
| Metric | Current Value | Previous Value | Change |
|---|---|---|---|
| Consolidated Net Sales | $758.5 million | $791.7 million | -4.2% |
| Operating Income | $77.0 million | $93.4 million | -17.5% |
| Net Income | $58.3 million | $66.1 million | -11.8% |
| Dividend Declared | $0.80 per share | $0.75 per share | +6.7% |
| Effective Tax Rate | 20.0% | 23.3% | -330 bps |
Ownership Changes and Their Effects
Significant ownership changes have also influenced market performance. The company reported a share repurchase of 449,481 shares and declared dividends totaling $28.8 million in cash during the third quarter.
Future Outlook
Looking forward, analysts remain cautiously optimistic, highlighting growth potential in the exclusive brands segment while recognizing persistent economic headwinds that could impact overall sales.
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Article updated on 8 Nov 2024
Resources:
- Carter's, Inc. (CRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carter's, Inc. (CRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carter's, Inc. (CRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.