LSV Asset Management reduces position in Carter’s, by 1.7% in Q2

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Carter’s ($NYSE:CRI), Inc. is a leading American brand in the children’s apparel industry, known for its high-quality and affordable clothing for babies, toddlers, and young children. In the second quarter of this year, LSV Asset Management, a well-known investment management firm, made headlines by reducing its position in Carter’s, Inc. by 1.7%. This decision was reported by the company itself, which is required to disclose any changes in shareholding by major investors. This news has sparked interest and speculation among investors and industry experts about the possible reasons behind LSV’s move. One possible reason for the reduction could be due to the overall performance of Carter’s stock in recent months. This could be a concern for LSV, which manages a large portfolio and may have decided to reallocate its investments to other more promising opportunities. Another factor that may have influenced LSV’s decision could be the overall economic outlook and market conditions. With uncertainties and volatility in the stock market due to the ongoing pandemic and its impact on the global economy, many investors may be taking a cautious approach to their investments.

This could have led LSV to reduce its position in Carter’s to minimize potential risks. It is also worth noting that LSV is not the only major investor in Carter’s to decrease its position in the company. This could indicate a larger trend among major investors in the company. While the news of LSV Asset Management’s reduction in position may initially raise concerns among stakeholders, it is important to note that the firm still holds a significant stake in Carter’s. With its strong brand reputation and loyal customer base, Carter’s remains a solid investment choice in the long run. As the company continues to navigate through the challenges brought on by the pandemic, it will be interesting to see how LSV and other major investors adjust their positions in the future.

Analysis

After conducting a thorough analysis of CARTER’S well-being, I have come to the conclusion that this company is in good financial standing. According to Star Chart, CARTER’S falls under the category of ‘cow’, which means it has a track record of consistently and sustainably paying out dividends. This is great news for potential investors as it suggests a stable and reliable source of income. The high health score of 9/10 given by Star Chart further solidifies CARTER’S financial strength. This score is based on its cashflows and debt, indicating that the company is capable of paying off its debt and funding future operations. This is an important factor for investors to consider as it shows that CARTER’S is not heavily burdened by debt and has enough resources to continue operating and growing. In terms of its financial performance, CARTER’S is strong in its dividend payouts and profitability. This is a positive sign for investors as it indicates that the company is generating consistent profits and is committed to sharing them with shareholders. Additionally, CARTER’S has a medium rating in terms of its assets, meaning it has a healthy balance between its investments and liabilities. One area where CARTER’S may not be as strong is in its growth potential. According to our analysis, the company has a weak rating in this category. This could be due to various factors such as market saturation or limited opportunities for expansion. However, this does not necessarily mean that CARTER’S is not a viable investment option. It simply suggests that investors may not see significant growth in their returns from this company. Overall, based on our analysis, I believe that CARTER’S would be a good fit for investors looking for a stable and reliable source of income. With its strong dividend payments, profitability, and high health score, this company has the potential to provide consistent returns for its shareholders. However, those seeking high growth opportunities may want to consider other options. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Carter’s. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Carter’s. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Carter’s. More…

Key Ratios Snapshot

Some of the financial key ratios for Carter’s are shown below. More…

Peers

The company’s competitors include Children’s Place Inc, Apranga APB, and Boot Barn Holdings Inc.

– Children’s Place Inc ($NASDAQ:PLCE)

Children’s Place Inc is a publicly traded company with a market capitalization of 506.93M as of 2022. The company’s return on equity is 55.72%. Children’s Place Inc is a specialty retailer of children’s apparel and accessories. The company operates through two segments: North America and Europe. Children’s Place Inc offers a variety of merchandise, including clothing, footwear, accessories, and gifts. The company was founded in 1969 and is headquartered in Secaucus, New Jersey.

– Apranga APB ($LTS:0KJF)

As of 2022, Apranga APB has a market cap of 103.12M. The company’s return on equity is 19.95%. Apranga APB is a Lithuanian clothing retail chain. The company was founded in 1989 and is headquartered in Vilnius, Lithuania. Apranga APB operates in Lithuania, Latvia, and Estonia. The company operates a chain of stores under the Apranga and APB brands. Apranga APB offers a range of clothing, footwear, and accessories for men, women, and children.

– Boot Barn Holdings Inc ($NYSE:BOOT)

As of 2022, Boot Barn Holdings Inc has a market cap of 1.71B and a Return on Equity of 23.87%. The company is a retailer of western and work-related footwear, apparel, and accessories for men, women, and children.

Summary

LSV Asset Management, a leading investment firm, recently decreased its stake in Carter’s, Inc. This move was made in the second quarter of the year and amounted to a reduction of 1.7% in their position. This indicates a lack of confidence in the company’s performance and potential for growth. It is important for investors to take note of this development and conduct further analysis before making any investment decisions related to Carter’s.

The company’s financial performance and market trends should be thoroughly evaluated in order to make an informed decision. This news serves as a reminder for investors to always stay vigilant and conduct detailed analysis before investing in any company.