Carpenter Technology (NYSE:CRS) Reaches New 12-Month High Following Dividend Announcement

Key Points

• Carpenter Technology shares hit a new 52-week high after the company announced a $0.20 dividend payable June 4 (record/ex-dividend date April 28), equal to $0.80 annualized with a ~0.2% yield and a 9.29% payout ratio.
• Analyst sentiment is broadly positive (nine Buys, two Holds) with an average target of $403.11 and recent price targets including Susquehanna $470 and KeyCorp $453.
• The company beat quarterly EPS estimates ($2.33 vs. $2.20) with revenue of $728M (up 7.5% y/y); Carpenter has a $22.51B market cap, P/E of 52.46, a current ratio of 4.25 and debt/equity of 0.35.

Shares of Carpenter Technology Corporation (NYSE:CRS - Get Free Report) reached a new 52-week high on Monday after the company announced a dividend. The company traded as high as $451.00 and last traded at $451.60, with a volume of 239581 shares changing hands. The stock had previously closed at $445.69.The newly announced dividend which will be paid on Thursday, June 4th. Shareholders of record on Tuesday, April 28th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend is Tuesday, April 28th. Carpenter Technology's dividend payout ratio is presently 9.29%.

Wall Street Analyst Weigh In

Several research firms have commented on CRS. Susquehanna began coverage on Carpenter Technology in a research note on Tuesday, March 3rd. They issued a "positive" rating and a $470.00 price objective for the company. KeyCorp increased their price target on shares of Carpenter Technology from $380.00 to $453.00 and gave the company an "overweight" rating in a research report on Thursday, April 9th. Wells Fargo & Company initiated coverage on shares of Carpenter Technology in a report on Wednesday, April 1st. They set an "equal weight" rating and a $400.00 price objective for the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Carpenter Technology in a research report on Tuesday, January 27th. Finally, Wall Street Zen raised shares of Carpenter Technology from a "hold" rating to a "buy" rating in a research report on Saturday, January 31st. Nine investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Carpenter Technology presently has an average rating of "Moderate Buy" and an average target price of $403.11.

Carpenter Technology Trading Up 1.4%

The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.26 and a current ratio of 4.25. The firm has a market cap of $22.51 billion, a P/E ratio of 52.46, a P/E/G ratio of 1.71 and a beta of 1.24. The firm has a 50 day simple moving average of $394.26 and a 200 day simple moving average of $340.42.

Carpenter Technology (NYSE:CRS - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The basic materials company reported $2.33 EPS for the quarter, beating the consensus estimate of $2.20 by $0.13. Carpenter Technology had a net margin of 14.77% and a return on equity of 23.63%. The firm had revenue of $728.00 million during the quarter, compared to the consensus estimate of $733.76 million. During the same period last year, the firm earned $1.66 EPS. The business's quarterly revenue was up 7.5% compared to the same quarter last year. On average, equities research analysts predict that Carpenter Technology Corporation will post 6.83 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP James D. Dee sold 15,800 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $391.78, for a total transaction of $6,190,124.00. Following the sale, the senior vice president owned 73,739 shares in the company, valued at approximately $28,889,465.42. This trade represents a 17.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Steven E. Karol sold 3,500 shares of Carpenter Technology stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $381.12, for a total transaction of $1,333,920.00. Following the sale, the director directly owned 225,381 shares of the company's stock, valued at $85,897,206.72. This represents a 1.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,300 shares of company stock worth $8,664,044 over the last ninety days. 2.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Carpenter Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Woodline Partners LP bought a new position in Carpenter Technology during the first quarter valued at approximately $4,050,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Carpenter Technology by 1.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,785 shares of the basic materials company's stock valued at $18,985,000 after buying an additional 1,701 shares during the period. Focus Partners Wealth boosted its position in Carpenter Technology by 7.3% during the first quarter. Focus Partners Wealth now owns 4,615 shares of the basic materials company's stock valued at $836,000 after buying an additional 314 shares during the period. Quantbot Technologies LP bought a new position in shares of Carpenter Technology during the second quarter valued at about $80,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Carpenter Technology in the second quarter worth about $533,000. 92.03% of the stock is currently owned by hedge funds and other institutional investors.

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. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets.

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