Exploring Carter Bankshares, Inc. (CARE) Investor Profile: Who’s Buying and Why?

You're looking at Carter Bankshares, Inc. (CARE) and asking the right question: who is actually buying this stock, and what's their conviction? Honestly, understanding the investor profile is as crucial as analyzing the balance sheet, especially for a regional bank navigating a complex rate environment. With a market capitalization sitting around $385.64 million as of mid-November 2025, Carter Bankshares is firmly in that small-cap territory where a few big players can move the needle. The data shows that institutional ownership is already robust at over 51.07%, meaning a majority of the shares are held by professional money managers-the kind of investors who pore over the fact that Q3 2025 net income was $5.4 million, even with the ongoing nonperforming loan challenges. So, are the institutions buying for the $4.8 billion in total assets, or are they betting on the turnaround strategy that drove annualized loan growth to 9.4%? That's what we need to unpack.

Who Invests in Carter Bankshares, Inc. (CARE) and Why?

The investor base for Carter Bankshares, Inc. (CARE) is defintely a story of institutional conviction, not a retail frenzy, which is typical for a regional bank with a turnaround narrative. The direct takeaway is that professional money managers own the majority of the stock, driven by a value-oriented thesis tied to balance sheet cleanup and margin expansion, not a dividend payout.

As of late 2025, institutional investors hold a significant stake, controlling about 51.07% of the outstanding shares. This high percentage-over half the company-means decisions by large funds like BlackRock, Inc. and Vanguard Group Inc are the primary drivers of trading volume and price movement. Retail investors, while numerous, collectively hold a smaller piece, and company insiders own a modest 2.16% of the stock.

Here's a quick breakdown of the major players:

• Institutional Investors: Own the majority; focused on long-term value.
• Retail Investors: Smaller, individual accounts; often local to the bank's footprint.
• Insiders: Management and directors; ownership is relatively low at 2.16%.

The Institutional Anchor: Who's Buying?

The institutional ownership structure is dominated by passive index funds and specialized small-cap value managers. For example, major passive managers like BlackRock, Inc. and Vanguard Group Inc are consistently among the largest holders, mainly because Carter Bankshares, Inc. is a constituent of various index funds (like the Russell 2000). But, you also see specialized names like Dimensional Fund Advisors Lp and Maltese Capital Management LLC, signaling a more active, fundamental-driven interest in the regional banking sector.

This tells you the stock is liquid enough for big players, but also that active value funds see a specific opportunity. They hold a total of over 13.6 million shares, making them the ultimate decision-makers. You can learn more about the bank's core business in Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors.

Investment Motivations: Growth, Not Income

Investors are attracted to Carter Bankshares, Inc. for two primary reasons: a compelling value proposition and a clear path to growth, especially in net interest margin (NIM). It's not about dividends; the company has a 0.00% dividend yield, having suspended payments to focus on capital preservation and balance sheet cleanup. That's a huge signal: income investors are out, and capital appreciation investors are in.

The growth story centers on their core banking performance. In the third quarter of 2025, the Net Interest Margin improved to 2.86%, up from the previous quarter, indicating better management of interest-earning assets and liabilities in a challenging rate environment. Plus, total portfolio loans grew to $3.8 billion as of September 30, 2025, which is a key indicator of a healthy regional bank. The company is also expanding its footprint, onboarding new customers at acquired North Carolina branches, which points to future revenue growth.

But there's a risk: Nonperforming Loans (NPLs) remain high at $258.6 million, or 6.74% of total loans in Q3 2025, largely tied to specific legacy issues. Value investors see the cleanup of these assets as the main catalyst for a significant stock price re-rating. If they can fix that, the stock moves.

Typical Investment Strategies: The Value Play

The dominant strategy among Carter Bankshares, Inc. investors is classic value investing. This approach focuses on buying stocks that appear cheap relative to their intrinsic value, often measured by metrics like price-to-earnings (P/E) or price-to-book (P/B) ratios. For CARE, the trailing P/E ratio is around 12.49, and the Price-to-Book Value is approximately 0.95, which suggests the stock is trading below its book value. That's a strong signal for a value investor.

Here's how the strategies align:

• Value Investing: Buy the stock below its book value (P/B < 1.0) and wait for the market to re-rate it once the nonperforming loan issues are resolved and the efficiency ratio improves (it hit 73.43% in Q3 2025).
• Long-Term Holding: Investors are betting on the long-term stability of a regional bank with $4.8 billion in assets and a strong retail deposit base (78.2% of deposits). They are willing to overlook the short-term earnings volatility-Q3 2025 diluted EPS was only $0.24-for the eventual payoff from balance sheet normalization.
• Event-Driven Investing: Some funds are watching for a potential acquisition. Regional banks are often targets, and a cleaned-up balance sheet makes Carter Bankshares, Inc. a more attractive partner for a larger financial institution looking to expand its footprint in Virginia and North Carolina.

To be fair, short-term trading is minimal; the short interest is low at 3.3% of the float, meaning few investors are actively betting against the stock. The consensus is that the long-term opportunity outweighs the near-term risks, provided management continues to execute on asset quality improvement.

Institutional Ownership and Major Shareholders of Carter Bankshares, Inc. (CARE)

If you're looking at Carter Bankshares, Inc. (CARE), the first thing to understand is who actually owns the stock. The direct takeaway is that institutional investors-the big money managers, pension funds, and ETFs-hold a significant stake, controlling over half the company. Specifically, institutional ownership stands at 51.07% of the shares outstanding as of November 2025, which is a major factor in the stock's stability and strategic direction.

This level of institutional backing gives the stock a certain credibility among professional investors, but it also means you need to watch their trading activity closely. For a small-cap bank like CARE, with a market capitalization around $385.64M as of November 13, 2025, these large holders have an outsized influence.

Top Institutional Investors and Their Stakes

The shareholder base is dominated by a mix of active and passive managers. Passive giants like BlackRock Institutional Trust Company, N.A., and The Vanguard Group, Inc. hold large positions, mostly through index-tracking funds like the iShares Core S&P Small-Cap ETF. But the single largest holder is an active wealth manager, Roseman Wagner Wealth Management, which speaks to a conviction play in the regional banking space.

Here's a snapshot of the largest institutional holders based on their Q3 2025 filings (as of September 30, 2025):

Recent Changes: Who's Buying and Selling?

Looking at the most recent quarter (Q3 2025), the picture is mixed, which is defintely typical for a small-cap stock undergoing a turnaround. You see some major institutions reducing their exposure, while others are adding aggressively. This suggests a divergence of opinion on CARE's near-term outlook, despite the bank's Q3 2025 net income of $5.4 million, or $0.24 per diluted share.

The most notable activity comes from the hedge fund and quantitative trading community, who often have shorter time horizons. For example, D. E. Shaw & Co., L.P. sold a substantial number of shares, reducing their stake by 539,322 shares. But, PIMCO (US) went the other way, adding 365,501 shares.

Here's the quick math on the major moves from the September 30, 2025 filings:

• Significant Selling: D. E. Shaw & Co., L.P. and Roseman Wagner Wealth Management reduced their positions by -539,322 and -241,351 shares, respectively.
• Significant Buying: PIMCO (US) was the largest buyer, increasing its holding by 365,501 shares.
• Passive Stability: BlackRock and Vanguard, representing passive index-tracking strategies, had relatively minor changes, showing their holdings are tied to CARE's inclusion in key small-cap indices.

When the big players disagree, it creates opportunity, but also volatility. For more on the underlying business health, check out Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors.

Impact of Institutional Investors on CARE's Strategy

Institutional investors play two crucial roles for Carter Bankshares, Inc.: providing liquidity and influencing corporate governance. Because institutions own over half the stock, their activity dictates a lot of the trading volume. High institutional ownership generally means greater liquidity, making it easier to buy or sell shares without causing massive price swings.

More importantly for a bank like CARE, which is actively engaged in strategic initiatives-like its recent approval to become a state member bank regulated by the Federal Reserve Bank of Richmond-these large investors act as a check on management.

Their influence can push for better performance, especially since CARE is a small-cap stock where institutional herding can sometimes be observed. If a few major institutions start selling, it signals a lack of confidence that can drive the price down fast.

For you as an investor, this means the institutional ownership is a double-edged sword:

• Opportunity: Institutional confidence suggests a belief in the bank's strategic direction, including its expansion into North and South Carolina.
• Risk: A sudden, coordinated exit by a few major holders could disproportionately impact the stock price due to the company's size.

Next step: Track the next round of 13F filings to see if the net selling trend from Q3 2025 accelerates or reverses. Owner: Portfolio Manager.

Key Investors and Their Impact on Carter Bankshares, Inc. (CARE)

The investor profile for Carter Bankshares, Inc. (CARE) is dominated by large institutional money managers-the silent majority-who collectively own over 51% of the outstanding common stock as of late 2025. This isn't a story of a single activist investor making noise, but rather a collection of powerful funds betting on the bank's ongoing turnaround story: improving its core net interest margin (NIM) while steadily resolving a long-standing nonperforming loan (NPL) issue.

You're seeing these major funds, mostly passive managers, buying in because the valuation is tied to future credit cleanup, not just today's earnings. The collective influence of these institutions pushes management to prioritize capital efficiency and the resolution of that major credit headwind, the 'Justice Entities' loans, which still stood at $235.5 million as of the second quarter of 2025.

The Institutional Heavy Hitters: Who's Buying?

The largest shareholders are mostly index and quantitative funds, which means they hold the stock to match the performance of small-cap or regional bank indices. This passive ownership provides a stable base, but their sheer size means management is defintely focused on metrics that keep these giants satisfied, like return on equity (ROE) and capital deployment.

Here's a snapshot of the top institutional holders and their approximate stake, based on recent public filings for Carter Bankshares, Inc.:

The presence of financial specialists like Maltese Capital Management LLC and active managers like Kennedy Capital Management LLC suggests a belief that the bank is fundamentally undervalued. They see a clear path for the stock price to rise as the bank sheds its legacy credit issues and executes its strategic plan-a plan you can read more about here: Mission Statement, Vision, & Core Values of Carter Bankshares, Inc. (CARE).

Recent Moves and Investor-Driven Actions

The most notable recent move isn't a massive new stake from a single fund, but rather the company's own capital allocation, which is often a direct response to investor demand for better returns. Carter Bankshares, Inc. repurchased 262,269 shares of its common stock at a total cost of $4.9 million during the third quarter of 2025. This action signals management's belief that the stock is cheap, which is a strong nod to value-oriented investors.

Also, the bank's strategic initiatives show a clear focus on cleaning up the balance sheet and improving efficiency, which is what the institutional money demands:

• NPL Resolution: Nonperforming loans decreased from $301.9 million to $235.5 million through curtailment payments since June 2023, showing progress.
• Margin Expansion: Net interest margin (NIM) improved to 2.86% in Q3 2025, up from 2.80% in the prior quarter, indicating better profitability on its loan book.
• Strategic Growth: The bank completed a branch purchase, acquiring $55.9 million in deposits and two North Carolina branches in Q2 2025, expanding its footprint.

Here's the quick math: If you can resolve the bulk of that NPL concentration while growing the core business (loan growth was 9.4% annualized in Q3 2025), the stock has a clear runway. That's the core thesis for the institutional holders.

Market Impact and Investor Sentiment

You're looking at Carter Bankshares, Inc. (CARE) and wondering who's buying and why the stock moves the way it does. The short answer is that institutional investors are still accumulating, but the overall sentiment is mixed-a 'show me' attitude. The market is weighing solid operational growth against one major credit risk that just won't quit.

The investor profile is defintely dominated by institutions, which often signals a belief in the long-term turnaround story, but their conviction is being tested by credit quality issues. For instance, in the second quarter of 2025, we saw institutional players like CWM LLC and Geneos Wealth Management Inc. significantly increase their positions, with Geneos growing its stake by over 140%. This kind of accumulation tells you the smart money sees value.

Management is also putting its money where its mouth is. As of September 30, 2025, Carter Bankshares repurchased over 809,601 shares of common stock for a total cost of $14.0 million, a clear signal of confidence in the stock's undervaluation and a direct action to boost shareholder value.

• Institutional buying shows long-term value belief.
• Company share buybacks provide a floor for the stock.
• Credit concerns keep the overall sentiment cautious.

Decoding Recent Market Reactions to Ownership

The stock market's response to Carter Bankshares' news in 2025 has been a classic push-pull scenario. When the company announced its third-quarter 2025 earnings, reporting net income of $5.4 million, down from $8.5 million in the second quarter, the market reacted negatively, with one sentiment measure showing a -6.34% end-of-day impact. This drop was largely tied to the persistent drag from its nonperforming loans (NPLs).

However, positive corporate actions have provided support. The announcement of a $20 million stock repurchase program in May 2025, set to run until May 2026, is a common move designed to signal that the stock is cheap and to soak up selling pressure. This move, alongside the news that Carter Bank joined the Federal Reserve Bank of Richmond as a state member bank in November 2025, are the kinds of strategic, structural improvements that investors like to see, even if the immediate financial impact is neutral.

What this estimate hides, though, is the impact of insider selling. In September 2025, an insider sold $269k worth of stock at $19.83 per share. While insiders still own a small percentage (around 2.18%), a large sale at a higher price point can make other investors nervous, suggesting caution at that valuation level. You need to watch those Form 4 filings closely. For a deeper dive into the company's foundation, you can read more at Carter Bankshares, Inc. (CARE): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives: The Credit Quality Hurdle

The Wall Street view on Carter Bankshares is best described as cautiously optimistic, but the caution is heavy. The consensus analyst rating is a 'Hold,' with the three primary analysts split: one 'Buy,' one 'Hold,' and one 'Sell' rating. The average 12-month price target is a uniform $22.00, which represents a solid upside from the November 2025 price of $17.53.

Raymond James Financial, for example, set their price target at $22.00 with an 'Outperform' rating in October 2025, shortly after Weiss Ratings upgraded the stock to a 'Buy.' This optimism is grounded in the bank's operational strength, which shows an annualized loan growth of 9.4% and a net interest margin (NIM) improvement to 2.86% in Q3 2025.

Here's the quick math on the risk: the core drag remains the largest nonperforming credit relationship, tied to the Justice Entities. At the end of Q3 2025, the aggregate principal balance for this relationship was still substantial at $228.6 million, contributing to total Nonperforming Loans (NPLs) of $258.6 million. Until that major credit is resolved, analysts will keep a lid on their most bullish forecasts, no matter how good the core business performs.

The key action for you is to monitor the NPL resolution updates in the next quarter's filings. If that number starts to materially shrink, you'll see a swift re-rating from the analysts, and the stock will likely move toward that $22.00 price target fast.