The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. It was a quiet week in guru trades but we did Larry Robbins (Trades, Portfolio) making a notable increase in the babies and children’s outfitter Carter’s (CRI).
Larry Robbins (Trades, Portfolio)
As GuruFocus Real Time Picks reports, Larry Robbins (Trades, Portfolio) upped his holdings in the children’s clothing company Carter’s on July 10. The guru upped his position 136.42% by purchasing 2,119,779 shares of the company’s stock. He purchased these shares at around the estimated average daily price of $69.50 per share. Since then the price per share has dropped approximately -2% to $68.14 per share.
Robbins now owns 3,673,608 shares of the company’s stock. This position makes up for 6.2% of the company’s shares outstanding and approximately 1.6% of Robbins’ total assets managed. This recent buy makes Robbins the second largest guru shareholder following Chase Coleman (Trades, Portfolio)’s Tiger Global Management.
Robbins’ historical holdings of Carter’s Inc:
Carter’s Inc. is a branded marketer in the United States of apparel exclusively for babies and young children. It owns two brand names in the children's apparel industry, Carter's and OshKosh.
Carter’s historical revenue and net income:
The analysis on Carter’s reports that the company’s operating margin has been in a 5-year decline, its dividend yield is close to a 2-year high and its P/S ratio is near a 2-year low.
Two former vice presidents of Carter’s and a portfolio manager for a New York-based hedge fund were recently sentenced to federal prison after they pleaded guilty to insider trading. The two former VPs, Eric Martin and Richard Posey, along with Mark Megalli, were sentenced to roughly a year and a half each after making illegal trades based on non-public information. These men made illegal trades worth $15 million.
The company recently announced that they would release their second quarter 2014 financial results on July 24, 2014.
There are currently ten gurus that hold a position in Carter’s. Check out their holding histories here.
The Peter Lynch Chart suggests that the company is currently overvalued:
Carter’s has a market cap of $3.7 billion. Its shares are currently trading at around $69.08 with a P/E ratio of 25.60, a P/S ratio of 1.40 and a P/B ratio of 5.00. The company had an annual average earnings growth of 14.70% over the past ten years.
You can check out more real time picks and the portfolio holdings of Larry Robbins (Trades, Portfolio) here.
