Carter’s, Inc. (CRI): Hedge Funds Are Bearish and Insiders Are Undecided, What Should You Do?

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Now that that’s out of the way, it’s important to study the newest info for Carter’s, Inc. (NYSE:CRI).

How are hedge funds trading Carter’s, Inc. (NYSE:CRI)?

At the end of the second quarter, a total of 36 of the hedge funds we track held long positions in this stock, a change of -8% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes significantly.

Carter's, Inc. (NYSE:CRI)Out of the hedge funds we follow, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC had the biggest position in Carter’s, Inc. (NYSE:CRI), worth close to $296.3 million, comprising 5.2% of its total 13F portfolio. Coming in second is Viking Global, managed by Andreas Halvorsen, which held a $218.7 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Jonathan Auerbach’s Hound Partners, Alan Fournier’s Pennant Capital Management and Natixis Global Asset Management’s Harris Associates.

As Carter’s, Inc. (NYSE:CRI) has witnessed declining interest from the top-tier hedge fund industry, it’s safe to say that there lies a certain “tier” of hedge funds who sold off their entire stakes last quarter. At the top of the heap, David Goel and Paul Ferri’s Matrix Capital Management cut the largest investment of all the hedgies we watch, worth about $170.4 million in stock. Jonathon Jacobson’s fund, Highfields Capital Management, also said goodbye to its stock, about $63.3 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 3 funds last quarter.

How have insiders been trading Carter’s, Inc. (NYSE:CRI)?

Insider buying made by high-level executives is best served when the company in question has experienced transactions within the past 180 days. Over the last half-year time frame, Carter’s, Inc. (NYSE:CRI) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Carter’s, Inc. (NYSE:CRI). These stocks are Columbia Sportswear Company (NASDAQ:COLM), Under Armour Inc (NYSE:UA), Fifth & Pacific Companies Inc (NYSE:FNP), Gildan Activewear Inc (USA) (NYSE:GIL), and Hanesbrands Inc. (NYSE:HBI). This group of stocks are in the textile – apparel clothing industry and their market caps are similar to CRI’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Columbia Sportswear Company (NASDAQ:COLM) 6 0 7
Under Armour Inc (NYSE:UA) 12 0 6
Fifth & Pacific Companies Inc (NYSE:FNP) 31 0 0
Gildan Activewear Inc (USA) (NYSE:GIL) 12 0 0
Hanesbrands Inc. (NYSE:HBI) 26 1 5

Using the returns shown by Insider Monkey’s tactics, average investors should always track hedge fund and insider trading sentiment, and Carter’s, Inc. (NYSE:CRI) applies perfectly to this mantra.

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