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

Carter’s, Inc. (NYSE:CRI) investors should be aware of an increase in hedge fund sentiment lately.

In the 21st century investor’s toolkit, there are tons of indicators shareholders can use to monitor stocks. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can beat the broader indices by a healthy amount (see just how much).

Just as important, positive insider trading activity is another way to parse down the world of equities. Obviously, there are plenty of stimuli for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this tactic if “monkeys” know where to look (learn more here).

With these “truths” under our belt, let’s take a look at the key action surrounding Carter’s, Inc. (NYSE:CRI).

Hedge fund activity in Carter’s, Inc. (NYSE:CRI)

At the end of the first quarter, a total of 39 of the hedge funds we track held long positions in this stock, a change of 15% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes meaningfully.

According to our comprehensive database, Viking Global, managed by Andreas Halvorsen, holds the biggest position in Carter’s, Inc. (NYSE:CRI). Viking Global has a $196.4 million position in the stock, comprising 1.2% of its 13F portfolio. Coming in second is Hoplite Capital Management, managed by John Lykouretzos, which held a $186.8 million position; 6% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include David Goel and Paul Ferri’s Matrix Capital Management, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC and Jonathan Auerbach’s Hound Partners.

As one would reasonably expect, key hedge funds have been driving this bullishness. Tiger Global Management LLC, managed by Chase Coleman and Feroz Dewan, initiated the most valuable position in Carter’s, Inc. (NYSE:CRI). Tiger Global Management LLC had 168.4 million invested in the company at the end of the quarter. J Kevin Kenny Jr’s Emerging Sovereign Group also initiated a $45.2 million position during the quarter. The other funds with brand new CRI positions are Keith Meister’s Corvex Capital, Neil Chriss’s Hutchin Hill Capital, and Charles Anderson’s Fox Point Capital Management.

What have insiders been doing with Carter’s, Inc. (NYSE:CRI)?

Insider buying is most useful when the company in focus has experienced transactions within the past half-year. Over the latest six-month time frame, Carter’s, Inc. (NYSE:CRI) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity 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 match CRI’s market cap.