Carpenter Technology (NYSE:CRS) Reaches New 1-Year High After Better-Than-Expected Earnings

Key Points

• Carpenter Technology's stock reached a new 52-week high at $307.72 after reporting better-than-expected earnings of $2.43 EPS, surpassing the consensus estimate of $2.13.
• The company announced a quarterly dividend of $0.20 per share to be paid on December 4th, with a yield of 0.3% and a payout ratio of 10.78%.
• Analysts have mixed views, with six giving a Buy rating while one downgraded the stock to Hold; the consensus price target stands at $308.75.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report) shares reached a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $307.72 and last traded at $299.32, with a volume of 3932122 shares trading hands. The stock had previously closed at $244.79.

The basic materials company reported $2.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.13 by $0.30. The business had revenue of $733.70 million for the quarter, compared to the consensus estimate of $741.18 million. Carpenter Technology had a net margin of 13.07% and a return on equity of 21.50%. The firm's quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.73 EPS.

Carpenter Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 4th. Shareholders of record on Tuesday, October 21st will be given a dividend of $0.20 per share. The ex-dividend date is Tuesday, October 21st. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. Carpenter Technology's dividend payout ratio is presently 10.78%.

Wall Street Analyst Weigh In

CRS has been the topic of a number of research reports. Jones Trading initiated coverage on shares of Carpenter Technology in a research report on Wednesday. They set a "buy" rating and a $400.00 target price on the stock. Zacks Research downgraded shares of Carpenter Technology from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, October 1st. Weiss Ratings reiterated a "buy (b+)" rating on shares of Carpenter Technology in a research report on Wednesday, October 8th. Finally, BTIG Research reiterated a "buy" rating on shares of Carpenter Technology in a research report on Monday, August 4th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $308.75.

Insider Activity at Carpenter Technology

In related news, Director I Martin Inglis sold 5,691 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $244.54, for a total transaction of $1,391,677.14. Following the completion of the sale, the director directly owned 6,732 shares of the company's stock, valued at approximately $1,646,243.28. This represents a 45.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Tony R. Thene sold 19,000 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $244.99, for a total value of $4,654,810.00. Following the sale, the chief executive officer directly owned 535,019 shares of the company's stock, valued at approximately $131,074,304.81. The trade was a 3.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 28,124 shares of company stock worth $6,890,250 in the last ninety days. Company insiders own 2.90% of the company's stock.

Institutional Trading of Carpenter Technology

A number of large investors have recently bought and sold shares of CRS. Geneos Wealth Management Inc. bought a new stake in Carpenter Technology during the 2nd quarter worth approximately $28,000. Rise Advisors LLC bought a new stake in Carpenter Technology during the 1st quarter worth approximately $31,000. IMA Advisory Services Inc. bought a new stake in Carpenter Technology during the 1st quarter worth approximately $36,000. Bessemer Group Inc. increased its stake in Carpenter Technology by 50.3% during 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. Finally, MassMutual Private Wealth & Trust FSB increased its stake in Carpenter Technology by 54.1% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 171 shares of the basic materials company's stock worth $42,000 after purchasing an additional 60 shares in the last quarter. 92.03% of the stock is owned by institutional investors.

Carpenter Technology Trading Up 22.3%

The firm has a market capitalization of $14.92 billion, a P/E ratio of 40.34, a PEG ratio of 1.11 and a beta of 1.46. The business has a 50 day moving average of $244.71 and a 200-day moving average of $239.84. The company has a current ratio of 3.65, a quick ratio of 2.01 and a debt-to-equity ratio of 0.37.

About Carpenter Technology

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.