Carpenter Technology (NYSE:CRS) Sets New 1-Year High - Should You Buy?

Key Points

• Carpenter Technology hit a new 52-week high, trading as high as $425.83 and last at $417.79 on volume of 322,291 shares, which is notably above the analysts' average price target of $387.11.
• Wall Street sentiment is mostly positive—nine analysts rate CRS a Buy and three rate Hold, giving an overall Moderate Buy consensus with recent upgrades and renewed coverage from firms like KeyCorp, JPMorgan and Weiss.
• Fundamentals show an EPS beat ($2.33 vs. $2.20), revenue up 7.5% year-over-year, a 14.77% net margin and 23.63% ROE, but the stock carries a high P/E of 48.45 and a minimal dividend yield (0.2%).

Carpenter Technology Corporation (NYSE:CRS - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $425.83 and last traded at $417.79, with a volume of 322291 shares traded. The stock had previously closed at $394.00.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CRS. Wall Street Zen upgraded Carpenter Technology from a "hold" rating to a "buy" rating in a report on Saturday, January 31st. Weiss Ratings restated a "buy (b)" rating on shares of Carpenter Technology in a report on Tuesday, January 27th. KeyCorp began coverage on Carpenter Technology in a report on Wednesday, March 25th. They set an "overweight" rating and a $380.00 price objective for the company. JPMorgan Chase & Co. boosted their price objective on Carpenter Technology from $388.00 to $394.00 and gave the stock an "overweight" rating in a report on Friday, January 30th. Finally, Wells Fargo & Company assumed coverage on Carpenter Technology in a report on Wednesday, April 1st. They set an "equal weight" rating and a $400.00 price objective for the company. Nine analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $387.11.

Carpenter Technology Trading Up 6.3%

The company has a debt-to-equity ratio of 0.35, a current ratio of 4.25 and a quick ratio of 2.26. The business's 50-day moving average price is $377.77 and its two-hundred day moving average price is $329.55. The company has a market capitalization of $20.86 billion, a price-to-earnings ratio of 48.45, a P/E/G ratio of 1.53 and a beta of 1.24.

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

Carpenter Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Tuesday, January 27th were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Tuesday, January 27th. Carpenter Technology's payout ratio is presently 9.29%.

Insider Buying and Selling

In other news, Director Steven E. Karol sold 3,500 shares of Carpenter Technology stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $381.12, for a total value of $1,333,920.00. Following the completion of the sale, the director directly owned 225,381 shares in the company, valued at approximately $85,897,206.72. The trade was a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP James D. Dee sold 15,800 shares of Carpenter Technology stock in a transaction that occurred 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 completion of the sale, the senior vice president owned 73,739 shares of the company's stock, valued at approximately $28,889,465.42. The trade was a 17.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 22,300 shares of company stock valued at $8,664,044. 2.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Rockefeller Capital Management L.P. raised its position in Carpenter Technology by 325.1% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,332 shares of the basic materials company's stock valued at $1,364,000 after purchasing an additional 3,313 shares in the last quarter. Corient Private Wealth LLC acquired a new position in Carpenter Technology during the fourth quarter valued at approximately $409,000. Banque Transatlantique SA acquired a new position in Carpenter Technology during the fourth quarter valued at approximately $285,000. Pacer Advisors Inc. raised its position in Carpenter Technology by 30.3% during the fourth quarter. Pacer Advisors Inc. now owns 8,565 shares of the basic materials company's stock valued at $2,697,000 after purchasing an additional 1,990 shares in the last quarter. Finally, Virtu Financial LLC acquired a new position in Carpenter Technology during the fourth quarter valued at approximately $2,780,000. 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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