Carpenter Technology (NYSE:CRS) Reaches New 12-Month High - Time to Buy?

Key Points

• Carpenter Technology (NYSE:CRS) hit a new 52-week high, trading as high as $597.52 after a strong recent run. The stock was last around $588 and has climbed well above its 50-day and 200-day moving averages.
• Recent analyst sentiment remains constructive, with eight Buy ratings and two Hold ratings and an average Moderate Buy consensus. Several firms recently raised price targets, though the consensus target of $458.62 is below the current share price.
• The company’s latest earnings beat expectations, with EPS of $2.77 topping estimates, while revenue grew 11.6% year over year. Carpenter Technology also paid a quarterly dividend of $0.20 per share, and institutional ownership remains high at 92.03%.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The company traded as high as $597.52 and last traded at $588.0680, with a volume of 1350966 shares changing hands. The stock had previously closed at $586.47.

Wall Street Analysts Forecast Growth

CRS has been the subject of several recent analyst reports. TD Cowen boosted their price objective on shares of Carpenter Technology from $450.00 to $470.00 and gave the stock a "buy" rating in a research note on Friday, May 22nd. Weiss Ratings downgraded Carpenter Technology from a "buy (b+)" rating to a "buy (b)" rating in a research report on Wednesday, June 3rd. Wells Fargo & Company increased their price objective on Carpenter Technology from $400.00 to $425.00 and gave the company an "equal weight" rating in a report on Monday, May 4th. KeyCorp raised their price objective on Carpenter Technology from $453.00 to $459.00 and gave the stock an "overweight" rating in a research report on Monday, May 4th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $500.00 target price on shares of Carpenter Technology in a research report on Thursday, April 30th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Carpenter Technology currently has an average rating of "Moderate Buy" and a consensus target price of $458.62.

Carpenter Technology Price Performance

The firm has a market cap of $29.22 billion, a price-to-earnings ratio of 61.90, a price-to-earnings-growth ratio of 2.02 and a beta of 1.25. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.08 and a current ratio of 3.73. The stock's 50 day simple moving average is $466.78 and its 200-day simple moving average is $395.38.

Carpenter Technology (NYSE:CRS - Get Free Report) last issued its earnings results on Wednesday, April 29th. The basic materials company reported $2.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.59 by $0.18. Carpenter Technology had a return on equity of 25.02% and a net margin of 15.82%.The company had revenue of $655.60 million during the quarter, compared to analyst estimates of $797.00 million. During the same quarter last year, the business posted $1.88 EPS. The firm's quarterly revenue was up 11.6% on a year-over-year basis. Equities research analysts anticipate that Carpenter Technology Corporation will post 10.56 EPS for the current fiscal year.

Carpenter Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Tuesday, April 28th were issued a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, April 28th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.1%. Carpenter Technology's dividend payout ratio is currently 8.42%.

Insider Activity

In other news, Director Anastasios John Hart sold 750 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $423.86, for a total value of $317,895.00. Following the sale, the director directly owned 750 shares of the company's stock, valued at $317,895. This represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Marshall D. Akins sold 11,815 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $441.36, for a total transaction of $5,214,668.40. Following the completion of the sale, the vice president owned 18,344 shares in the company, valued at $8,096,307.84. The trade was a 39.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRS. Ion Asset Management Ltd. acquired a new stake in shares of Carpenter Technology in the third quarter worth approximately $4,027,000. American Century Companies Inc. raised its stake in Carpenter Technology by 4.0% in the 3rd quarter. American Century Companies Inc. now owns 467,702 shares of the basic materials company's stock valued at $114,841,000 after purchasing an additional 18,201 shares during the last quarter. Kinetic Partners Management LP raised its stake in Carpenter Technology by 15.5% in the 3rd quarter. Kinetic Partners Management LP now owns 386,500 shares of the basic materials company's stock valued at $94,901,000 after purchasing an additional 51,800 shares during the last quarter. Bright Futures Wealth Management LLC. purchased a new position in Carpenter Technology in the 3rd quarter valued at $674,000. Finally, Citigroup Inc. lifted its holdings in Carpenter Technology by 64.3% in the 3rd quarter. Citigroup Inc. now owns 35,219 shares of the basic materials company's stock valued at $8,648,000 after purchasing an additional 13,779 shares in the last quarter. 92.03% of the stock is currently owned by institutional investors and hedge funds.

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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