SCHEDULE 13G: First Trust Entities Disclose Over 5% Passive Stake in Carter's, Inc.

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly disclosed a passive beneficial ownership of 5.42% in Carter's, Inc. common stock as of December 31, 2024.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation (collectively, 'First Trust Entities') have filed a Schedule 13G, indicating a passive beneficial ownership in Carter's, Inc.
• As of December 31, 2024, the First Trust Entities collectively beneficially owned 1,952,194 shares of Carter's, Inc. common stock.
• This aggregate amount represents 5.42% of Carter's, Inc.'s outstanding common stock.
• The filing indicates shared voting power over 1,964,195 shares and shared dispositive power over 1,952,194 shares.
• The shares are held in the ordinary course of business and are not for the purpose of changing or influencing the control of Carter's, Inc.
• The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P.
• First Trust Portfolios L.P. acts as sponsor of unit investment trusts, and First Trust Advisors L.P. acts as portfolio supervisor for these trusts and investment advisor/sub-advisor for other investment vehicles holding Carter's shares.
• The reporting persons disclaim beneficial ownership of the shares, as they are held by the underlying unit investment trusts and other investment vehicles.

Sentiment

Score: 6

Explanation: The disclosure of a significant passive institutional stake is generally neutral to slightly positive for the issuer, as it indicates institutional interest and confidence without implying activist intent.

Positives

• The disclosure of a significant 5.42% stake by a reputable institutional investor like First Trust may signal a vote of confidence in Carter's, Inc.'s long-term prospects and stability.
• The passive nature of the investment indicates that First Trust is not seeking to influence or change the control of Carter's, Inc., which can be viewed positively by current management and other shareholders.

Future Outlook

This document is a beneficial ownership disclosure and does not contain any forward-looking statements or guidance from Carter's, Inc. or the reporting entities regarding Carter's future performance.

Industry Context

This filing represents a standard disclosure of institutional ownership, common in the financial industry where investment firms manage assets on behalf of clients through various funds and trusts. It reflects a passive investment strategy by First Trust entities in the consumer discretionary sector, specifically in children's apparel and products, where Carter's, Inc. operates.

Stakeholder Impact

• Shareholders: The disclosure informs existing and potential shareholders about a significant institutional holder, which can influence market perception and liquidity.
• Management: Awareness of a large passive institutional investor may reinforce focus on long-term value creation, though without direct pressure for strategic changes.

Key Dates

Keywords

Carter's Inc., First Trust, Schedule 13G, Beneficial Ownership, Institutional Investment, Common Stock, Passive Stake, Investment Management, SEC Filing