SCHEDULE 13G/A: Pacer Funds Update Passive Stake in Carters Inc., Reallocating Holdings Among ETFs

Pacer US Small Cap Cash Cows ETF and Pacer Advisors, Inc. disclose a continued 1.25% passive beneficial ownership in Carters Inc., with a reallocation of shares previously held by Pacer US Cash Cows 100 ETF.

Summary

• Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer Advisors, Inc., and Joe M. Thomson (collectively, the 'Reporting Persons') have filed an Amendment No. 1 to their Schedule 13G regarding Carters Inc. common stock.
• The Reporting Persons collectively beneficially own 451,488 shares of Carters Inc. Common Stock.
• This ownership represents 1.25% of the total 36,041,995 shares of common stock issued and outstanding as of December 31, 2024.
• Pacer US Small Cap Cash Cows ETF holds all 451,488 shares with shared voting and dispositive power.
• Pacer US Cash Cows 100 ETF now reports 0 shares beneficially owned, indicating a divestment or reallocation of its previous holdings.
• Pacer Advisors, Inc., as the investment adviser to the Funds, and Joe M. Thomson, as the majority stockholder of the Adviser, are deemed beneficial owners of the 451,488 shares held by the Funds, also representing 1.25% of the class.
• The filing is made under Rule 13d-1(b), signifying that the shares were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Carters Inc.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While one fund divested, the overall group's passive stake remains, indicating continued inclusion in their investment strategy. This is a routine compliance filing with no negative implications for the issuer's operations or financial health.

Positives

• The continued passive investment by institutional entities like Pacer Funds may signal a stable, long-term holding strategy for Carters Inc. shares within their portfolio.

Negatives

• Pacer US Cash Cows 100 ETF no longer holds any shares, which could indicate a portfolio rebalancing decision to divest from Carters Inc. within that specific fund.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding Carters Inc.'s future performance or strategic direction, as it is solely an ownership disclosure filing.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing is a routine disclosure of beneficial ownership by an institutional investor and does not provide specific insights into broader industry trends or Carters Inc.'s competitive position beyond the fact that it remains a component of certain investment strategies.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional investor's passive stake in the company, confirming their continued, albeit reallocated, ownership.

Key Dates

Keywords

Carters Inc., Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer Advisors Inc., Joe M. Thomson, Beneficial Ownership, SEC Filing, Schedule 13G, Common Stock, Institutional Investor, Passive Investment