Carpenter Technology (NYSE:CRS) Trading 6% Higher - What's Next?

Key Points

• Carpenter Technology Corporation's shares rose by 6% to a trading price of $246.42, despite a significant decline in trading volume compared to the average.
• Analyst ratings are largely positive, with a consensus rating of "Moderate Buy" and target prices ranging from $250.00 to $305.00.
• The company recently announced a quarterly dividend of $0.20 per share, representing a 0.3% dividend yield and a payout ratio of 10.78%.

Shares of Carpenter Technology Corporation (NYSE:CRS - Get Free Report) traded up 6% during mid-day trading on Friday . The company traded as high as $251.39 and last traded at $246.42. 279,977 shares traded hands during trading, a decline of 69% from the average session volume of 916,078 shares. The stock had previously closed at $232.40.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. BTIG Research reiterated a "buy" rating on shares of Carpenter Technology in a report on Monday, August 4th. JPMorgan Chase & Co. increased their target price on Carpenter Technology from $245.00 to $305.00 and gave the stock an "overweight" rating in a report on Tuesday, June 17th. Benchmark raised their price objective on Carpenter Technology from $250.00 to $300.00 and gave the company a "buy" rating in a report on Monday, June 9th. Finally, Cowen reiterated a "buy" rating on shares of Carpenter Technology in a report on Thursday, June 12th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Carpenter Technology presently has a consensus rating of "Moderate Buy" and a consensus target price of $278.33.

Carpenter Technology Trading Up 7.1%

The firm's 50-day simple moving average is $250.68 and its 200 day simple moving average is $230.44. The firm has a market capitalization of $12.41 billion, a price-to-earnings ratio of 33.54, a P/E/G ratio of 1.06 and a beta of 1.52. The company has a debt-to-equity ratio of 0.37, a current ratio of 3.65 and a quick ratio of 2.01.

Carpenter Technology (NYSE:CRS - Get Free Report) last posted its earnings results on Thursday, July 31st. The basic materials company reported $2.21 earnings per share for the quarter, topping analysts' consensus estimates of $2.03 by $0.18. The firm had revenue of $755.60 million for the quarter, compared to analysts' expectations of $790.73 million. Carpenter Technology had a net margin of 13.07% and a return on equity of 21.50%. The company's revenue was down 5.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.82 earnings per share. Equities analysts expect that Carpenter Technology Corporation will post 6.83 earnings per share for the current year.

Carpenter Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Tuesday, August 26th were given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Tuesday, August 26th. Carpenter Technology's dividend payout ratio (DPR) is 10.78%.

Insiders Place Their Bets

In other news, CEO Tony R. Thene sold 19,000 shares of the stock in a transaction on Monday, August 18th. The shares were sold at an average price of $244.99, for a total transaction of $4,654,810.00. Following the completion of the sale, the chief executive officer directly owned 535,019 shares in the company, valued at $131,074,304.81. This represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director I Martin Inglis sold 5,691 shares of the stock in a transaction 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 sale, the director owned 6,732 shares of the company's stock, valued at approximately $1,646,243.28. This trade represents a 45.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 28,124 shares of company stock worth $6,890,250. 2.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Geneos Wealth Management Inc. bought a new position in Carpenter Technology during the second quarter worth $28,000. Headlands Technologies LLC purchased a new stake in Carpenter Technology during the second quarter worth about $43,000. Rakuten Securities Inc. bought a new stake in Carpenter Technology in the second quarter worth about $45,000. Rise Advisors LLC bought a new stake in Carpenter Technology in the first quarter worth about $31,000. Finally, IMA Advisory Services Inc. bought a new stake in Carpenter Technology in the first quarter worth about $36,000. 92.03% of the stock is owned by 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.

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