On November 3, 2023, Brian Lynch, President and COO of Carter's Inc (NYSE:CRI), sold 19,500 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 24,000 shares sold and no shares purchased.
Brian Lynch has been with Carter's Inc, a leading brand of children's clothing, gifts, and accessories in America, for several years. His role as President and COO places him in a strategic position within the company, making his stock transactions particularly noteworthy for investors and market watchers.
Carter's Inc, founded in 1865, is a major player in the apparel industry. The company offers a variety of products for children, including clothing, gifts, and accessories. With a strong presence in the American market, Carter's Inc has built a reputation for quality and innovation in children's apparel.
The insider transaction history for Carter's Inc shows a trend of selling rather than buying. Over the past year, there have been 10 insider sells and no insider buys. This could be indicative of the insider's confidence in the company's current stock price or a strategic move based on personal financial planning.
On the day of the insider's recent sell, shares of Carter's Inc were trading for $69.69 apiece, giving the stock a market cap of $2.589 billion. The price-earnings ratio stands at 12.83, lower than both the industry median of 16.14 and the companys historical median price-earnings ratio. This suggests that the stock is currently undervalued compared to its peers and its own historical performance.
The GuruFocus Value of Carter's Inc is $82.57, resulting in a price-to-GF-Value ratio of 0.84. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of 19,500 shares of Carter's Inc is a significant transaction that investors should take note of. Despite the insider's sell, the stock appears to be modestly undervalued based on its GF Value and price-earnings ratio. Investors should keep a close eye on further insider transactions and other market indicators to make informed investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.