Carpenter Technology (NYSE:CRS) Stock Price Down 7.5% - Here's Why

Key Points

• Stock down 7.5% intraday to about $396 from a $428.14 close, with 714,992 shares traded (slightly below average volume).
• Analysts remain largely bullish—consensus rating is "Moderate Buy" with an average target of $403.11 and several firms raising targets into the $450–$470 range.
• Carpenter beat quarterly EPS estimates ($2.77 vs. $2.60) with revenue up 11.6% year-over-year, but insiders have recently sold shares (22,300 in the last 90 days) and the stock trades at a high PE of about 46.99.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report)'s stock price traded down 7.5% during trading on Wednesday . The company traded as low as $400.64 and last traded at $396.1350. 714,992 shares were traded during mid-day trading, a decline of 10% from the average session volume of 796,749 shares. The stock had previously closed at $428.14.

Analysts Set New Price Targets

Several research firms have recently issued reports on CRS. JPMorgan Chase & Co. lifted their price objective on shares of Carpenter Technology from $394.00 to $465.00 and gave the stock an "overweight" rating in a research report on Monday, April 20th. Weiss Ratings reissued a "buy (b)" rating on shares of Carpenter Technology in a report on Friday. Wall Street Zen upgraded Carpenter Technology from a "hold" rating to a "buy" rating in a research note on Saturday, January 31st. KeyCorp lifted their price target on Carpenter Technology from $380.00 to $453.00 and gave the stock an "overweight" rating in a report on Thursday, April 9th. Finally, Susquehanna assumed coverage on Carpenter Technology in a research report on Tuesday, March 3rd. They set a "positive" rating and a $470.00 price objective for the company. Nine research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $403.11.

Carpenter Technology Stock Down 5.3%

The firm has a market cap of $20.19 billion, a PE ratio of 46.99, a P/E/G ratio of 1.65 and a beta of 1.24. 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's 50-day moving average price is $402.82 and its two-hundred day moving average price is $349.37.

Carpenter Technology (NYSE:CRS - Get Free Report) last posted its earnings results on Wednesday, April 29th. The basic materials company reported $2.77 EPS for the quarter, beating analysts' consensus estimates of $2.60 by $0.17. Carpenter Technology had a net margin of 14.77% and a return on equity of 23.63%. During the same period in the prior year, the business posted $1.88 EPS. Carpenter Technology's revenue was up 11.6% on a year-over-year basis. As a group, equities research analysts expect that Carpenter Technology Corporation will post 10.29 EPS for the current fiscal year.

Carpenter Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Tuesday, April 28th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, April 28th. This represents a $0.80 annualized dividend and a dividend yield of 0.2%. Carpenter Technology's dividend payout ratio (DPR) is presently 9.29%.

Insider Activity

In related news, Director Steven E. Karol sold 3,500 shares of the company's stock in a transaction dated Thursday, February 19th. The stock was 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 of the company's stock, valued at $85,897,206.72. This represents a 1.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP James D. Dee sold 15,800 shares of the company's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $391.78, for a total value of $6,190,124.00. Following the completion of the sale, the senior vice president directly owned 73,739 shares of the company's stock, valued at approximately $28,889,465.42. This trade represents a 17.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 22,300 shares of company stock worth $8,664,044. Corporate insiders own 2.90% of the company's stock.

Institutional Investors Weigh In On Carpenter Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sands Capital Management LLC purchased a new position in shares of Carpenter Technology during the fourth quarter worth approximately $195,731,000. Norges Bank acquired a new stake in Carpenter Technology during the 4th quarter worth $195,254,000. Aspex Management HK Ltd acquired a new stake in Carpenter Technology during the 3rd quarter worth $136,215,000. TOMS Capital Investment Management LP acquired a new position in Carpenter Technology in the second quarter valued at $106,683,000. Finally, UBS Group AG increased its stake in Carpenter Technology by 171.2% in the fourth quarter. UBS Group AG now owns 606,501 shares of the basic materials company's stock valued at $190,951,000 after purchasing an additional 382,865 shares during the period. Hedge funds and other institutional investors own 92.03% of the company's stock.

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

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