Carpenter Technology (NYSE:CRS) Reaches New 52-Week High on Strong Earnings

Key Points

• Carpenter Technology's shares reached a new 52-week high of $295.11 following an earnings report that beat analysts' expectations, with $2.21 earnings per share against a $2.02 estimate.
• The company announced a $400 million stock repurchase plan, which suggests that the board believes the stock is currently undervalued.
• JPMorgan Chase raised its price target for Carpenter Technology from $245 to $305, indicating strong optimism about the stock's future performance.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report) shares reached a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $295.11 and last traded at $275.64, with a volume of 4172 shares trading hands. The stock had previously closed at $283.63.

The basic materials company reported $2.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.18. Carpenter Technology had a net margin of 13.07% and a return on equity of 21.50%. The firm had revenue of $755.60 million for the quarter, compared to analyst estimates of $790.73 million. During the same quarter in the previous year, the firm posted $1.82 EPS. The business's revenue for the quarter was down 5.4% on a year-over-year basis.

Carpenter Technology announced that its Board of Directors has approved a stock buyback plan on Thursday, April 24th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the basic materials company to buy up to 4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. JPMorgan Chase & Co. upped their price target on shares of Carpenter Technology from $245.00 to $305.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 17th. Northcoast Research upgraded shares of Carpenter Technology from a "sell" rating to a "neutral" rating in a research report on Wednesday, April 9th. Cowen restated a "buy" rating on shares of Carpenter Technology in a research report on Thursday, June 12th. Finally, Benchmark upped their target price on shares of Carpenter Technology from $250.00 to $300.00 and gave the company a "buy" rating in a research report on Monday, June 9th.

Insider Buying and Selling at Carpenter Technology

In other Carpenter Technology news, Director Anastasios John Hart sold 1,000 shares of the firm's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $243.72, for a total transaction of $243,720.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Pictet Asset Management Holding SA grew its holdings in shares of Carpenter Technology by 14.6% during the fourth quarter. Pictet Asset Management Holding SA now owns 6,865 shares of the basic materials company's stock worth $1,165,000 after purchasing an additional 877 shares during the last quarter. Stratos Wealth Partners LTD. lifted its stake in Carpenter Technology by 22.9% in the first quarter. Stratos Wealth Partners LTD. now owns 2,968 shares of the basic materials company's stock valued at $538,000 after buying an additional 553 shares during the period. Bessemer Group Inc. lifted its holdings in shares of Carpenter Technology by 50.3% in the 1st quarter. Bessemer Group Inc. now owns 230 shares of the basic materials company's stock worth $42,000 after purchasing an additional 77 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Carpenter Technology by 27.8% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 15,953 shares of the basic materials company's stock worth $2,890,000 after acquiring an additional 3,467 shares during the last quarter. Finally, Fifth Third Bancorp grew its holdings in Carpenter Technology by 13.6% during the first quarter. Fifth Third Bancorp now owns 651 shares of the basic materials company's stock worth $118,000 after buying an additional 78 shares in the last quarter. Institutional investors own 92.03% of the company's stock.

Carpenter Technology Price Performance

The firm has a market cap of $12.59 billion, a P/E ratio of 34.09, a P/E/G ratio of 0.85 and a beta of 1.44. The company has a debt-to-equity ratio of 0.37, a current ratio of 3.65 and a quick ratio of 2.01. The company has a fifty day moving average of $262.86 and a 200-day moving average of $218.18.

Carpenter Technology Company Profile

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts.