Is Carter’s, Inc. (CRI) A Good Stock To Buy?

Judging by the fact that Carter’s, Inc. (NYSE:CRI) has experienced bearish sentiment from the smart money, logic holds that there lies a certain “tier” of hedgies that slashed their positions entirely by the end of the third quarter. It’s worth mentioning that Robert Pohly’s Samlyn Capital dumped the biggest position of the “upper crust” of funds followed by Insider Monkey, comprising about $46 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund cut about $15.9 million worth of CRI shares. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Carter’s, Inc. (NYSE:CRI) but similarly valued. These stocks are Six Flags Entertainment Corp (NYSE:SIX), Servicemaster Global Holdings Inc (NYSE:SERV), Copart, Inc. (NASDAQ:CPRT), and Assurant, Inc. (NYSE:AIZ). This group of stocks’ market caps are similar to CRI’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $729 million. That figure was $1.04 million in CRI’s case. Servicemaster Global Holdings Inc (NYSE:SERV) is the most popular stock in this table. On the other hand Assurant, Inc. (NYSE:AIZ) is the least popular one with only 16 bullish hedge fund positions. Carter’s, Inc. (NYSE:CRI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SERV might be a better candidate to consider a long position.

Disclosure: none.