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

Because Carter’s, Inc. (NYSE:CRI) has experienced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of money managers who sold off their positions entirely heading into Q4. Intriguingly, Robert Pohly’s Samlyn Capital cut the biggest investment of the “upper crust” of funds followed by Insider Monkey, valued at close to $85.3 million in stock, and Jason Karp’s Tourbillon Capital Partners was right behind this move, as the fund dumped about $37.2 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Carter’s, Inc. (NYSE:CRI) but similarly valued. These stocks are Liberty Property Trust (NYSE:LPT), Allison Transmission Holdings Inc (NYSE:ALSN), Embraer SA (ADR) (NYSE:ERJ), and Transocean LTD (NYSE:RIG). This group of stocks’ market caps are closest to CRI’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $611 million. That figure was $1.06 billion in CRI’s case. Allison Transmission Holdings Inc (NYSE:ALSN) is the most popular stock in this table with 40 funds holding shares. On the other hand Embraer SA (ADR) (NYSE:ERJ) is the least popular one. Compared to these stocks, Carter’s, Inc. (NYSE:CRI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.