Carlyle Group Inc. (NASDAQ:CG) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analysts remain cautious: Carlyle Group has a consensus “Hold” rating from 16 brokerages—eight holds, seven buys and one sell—with an average 12-month price target of about $59.79. Recent targets ranged from $45 at CFRA to $70 at UBS.
• Quarterly results beat estimates: Carlyle reported adjusted EPS of $1.07 versus the $0.91 consensus and revenue of $1.11 billion versus roughly $923.5 million expected. However, revenue declined 28.6% year over year, underscoring the volatility of performance fees and realizations.
• Capital-raising and shareholder returns remain notable: Carlyle raised $17 billion and announced a roughly $600 million strategic partnership with Prime Capital Financial, while maintaining its $0.35 quarterly dividend, equivalent to a 2.9% yield.

Carlyle Group Inc. (NASDAQ:CG - Get Free Report) has received an average recommendation of "Hold" from the sixteen ratings firms that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and seven have assigned a buy recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $59.7857.

A number of brokerages have commented on CG. Keefe, Bruyette & Woods lifted their price target on Carlyle Group from $47.00 to $50.00 and gave the stock a "market perform" rating in a research report on Thursday. Citigroup restated an "outperform" rating on shares of Carlyle Group in a research note on Thursday. TD Cowen reiterated a "hold" rating on shares of Carlyle Group in a research report on Thursday. Cfra cut shares of Carlyle Group to a "sell" rating and set a $45.00 price objective for the company. in a research note on Friday, May 8th. Finally, UBS Group increased their price objective on shares of Carlyle Group from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Thursday.

Carlyle Group Stock Down 1.9%

NASDAQ:CG opened at $48.88 on Friday. The company's 50 day moving average is $44.74 and its two-hundred day moving average is $48.93. The company has a market cap of $17.60 billion, a PE ratio of 50.92, a P/E/G ratio of 1.75 and a beta of 1.83. Carlyle Group has a twelve month low of $39.60 and a twelve month high of $69.85. The company has a current ratio of 2.35, a quick ratio of 2.55 and a debt-to-equity ratio of 1.91.

Carlyle Group (NASDAQ:CG - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $1.07 EPS for the quarter, topping the consensus estimate of $0.91 by $0.16. Carlyle Group had a net margin of 10.08% and a return on equity of 22.52%. The business had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $923.50 million. During the same period in the previous year, the firm posted $0.87 earnings per share. The business's revenue for the quarter was down 28.6% compared to the same quarter last year. Analysts anticipate that Carlyle Group will post 3.71 EPS for the current year.

Carlyle Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Monday, August 17th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 17th. Carlyle Group's payout ratio is 95.89%.

More Carlyle Group News

Here are the key news stories impacting Carlyle Group this week:

• Positive Sentiment: New $600 million strategic partnership: Carlyle’s Global Credit platform will provide approximately $600 million in hybrid capital to Prime Capital Financial, receive a minority ownership stake and support the wealth-management firm’s expansion. The transaction values Prime Capital at more than $1.8 billion and could create future investment and fee-generating opportunities for Carlyle. Prime Capital Financial Announces Strategic Partnership With Carlyle to Accelerate Next Phase of Growth
• Positive Sentiment: Second-quarter earnings beat expectations: Carlyle reported adjusted EPS of $1.07 versus the $0.91 analyst consensus, while revenue of $1.11 billion exceeded estimates of approximately $923.5 million. Higher assets under management and performance revenues supported the beat. Carlyle Q2 Earnings Beat Estimates on Higher AUM, Expenses Rise Year over Year
• Positive Sentiment: Fundraising and distributions remain strong: Carlyle raised $17 billion and highlighted accelerating growth in private credit and private equity fundraising. Distributable earnings reached their highest level in nearly four years, while management cited a strong pace of exits and realizations. Carlyle Raises $17 Billion, Sees Private Credit and Private Equity Growth Accelerating
• Positive Sentiment: Analysts raised price targets: Citizens JMP lifted its target to $73 and maintained an outperform rating, while Keefe, Bruyette & Woods raised its target to $50 but retained a market-perform rating.
• Neutral Sentiment: Dividend maintained: Carlyle declared a quarterly dividend of $0.35 per share, payable August 26 to shareholders of record August 17. The annualized payout is approximately $1.40 per share, representing a yield near 2.9%. This supports income-oriented investors but does not materially change the company’s outlook.
• Negative Sentiment: Revenue declined year over year: Quarterly revenue fell 28.6% from the prior-year period, and expenses increased, highlighting the sensitivity of Carlyle’s results to realizations, performance fees and market conditions. The stock also remains near its 200-day moving average, suggesting investors may be cautious about the durability of the earnings improvement.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Norges Bank acquired a new position in shares of Carlyle Group in the 4th quarter valued at $288,257,000. Bank of New York Mellon Corp acquired a new position in shares of Carlyle Group in the second quarter worth about $84,540,000. State Street Corp increased its stake in shares of Carlyle Group by 20.9% in the 3rd quarter. State Street Corp now owns 9,942,135 shares of the financial services provider's stock valued at $623,372,000 after purchasing an additional 1,720,483 shares in the last quarter. Regents of The University of California purchased a new position in Carlyle Group during the first quarter worth approximately $73,360,000. Finally, Balyasny Asset Management L.P. acquired a new position in shares of Carlyle Group during the 3rd quarter worth approximately $75,612,000. 55.88% of the stock is owned by institutional investors and hedge funds.

Carlyle Group Company Profile

The Carlyle Group NASDAQ: CG is a global alternative asset manager that invests across a range of strategies including private equity, real assets (such as real estate and infrastructure), global credit, and investment solutions. Founded in 1987 and headquartered in Washington, DC, Carlyle raises and manages investment funds that acquire, operate and exit companies and assets on behalf of institutional and private investors. The firm is publicly traded on the Nasdaq exchange and operates as an asset manager and investment advisor rather than as an operating company.

Carlyle's core activities include sourcing and executing private equity buyouts and growth investments, originating and managing credit and financing solutions, and acquiring and operating real asset portfolios.

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