Carpenter Technology Corporation (CRS) - What Are Researchers Thinking About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Eight of ten analysts rate Carpenter Technology a “buy,” while two recommend holding the stock. The average 12-month price target is $526.88, though recent targets have varied widely from $430 to $620.
• Carpenter Technology exceeded quarterly earnings expectations, reporting $3.23 in EPS versus the $3.09 consensus, while revenue rose 12.6% year over year to $679.7 million.
• The company declared a quarterly dividend of $0.20, equivalent to an annualized $0.80 payout and a 0.2% yield. Institutional investors own 92.03% of the stock, while insiders sold approximately $54.6 million worth of shares over the past three months.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report) has earned an average recommendation of "Moderate Buy" from the ten ratings firms that are presently covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $526.88.

A number of research analysts have recently commented on the stock. Wall Street Zen downgraded shares of Carpenter Technology from a "buy" rating to a "hold" rating in a research report on Saturday. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Carpenter Technology in a report on Monday, August 31st. Wells Fargo & Company cut their target price on shares of Carpenter Technology from $540.00 to $430.00 and set an "equal weight" rating for the company in a research note on Wednesday, September 30th. Zacks Research downgraded shares of Carpenter Technology from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 15th. Finally, BTIG Research lifted their price target on Carpenter Technology from $450.00 to $620.00 and gave the stock a "buy" rating in a report on Friday, July 31st.

Carpenter Technology Price Performance

NYSE:CRS opened at $378.13 on Tuesday. Carpenter Technology has a 1-year low of $233.77 and a 1-year high of $625.98. The company has a current ratio of 3.81, a quick ratio of 2.23 and a debt-to-equity ratio of 0.31. The firm has a fifty day simple moving average of $458.36 and a 200 day simple moving average of $481.51. The stock has a market capitalization of $18.74 billion, a PE ratio of 35.94, a P/E/G ratio of 1.36 and a beta of 1.29.

Carpenter Technology (NYSE:CRS - Get Free Report) last issued its earnings results on Thursday, July 30th. The basic materials company reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates of $3.09 by $0.14. Carpenter Technology had a net margin of 16.96% and a return on equity of 26.46%. The business had revenue of $679.70 million for the quarter, compared to the consensus estimate of $863.33 million. During the same period in the previous year, the company earned $2.21 earnings per share. The firm's revenue for the quarter was up 12.6% on a year-over-year basis. On average, research analysts expect that Carpenter Technology will post 13.28 EPS for the current fiscal year.

Carpenter Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Tuesday, October 20th will be paid a $0.20 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $0.80 annualized dividend and a yield of 0.2%. Carpenter Technology's dividend payout ratio is currently 7.60%.

Insider Activity

In related news, Director Ramin Younessi sold 438 shares of the business's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $493.15, for a total transaction of $215,999.70. Following the transaction, the director directly owned 1,953 shares of the company's stock, valued at approximately $963,121.95. The trade was a 18.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Steven E. Karol sold 3,275 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $474.08, for a total value of $1,552,612.00. Following the completion of the sale, the director owned 177,000 shares in the company, valued at approximately $83,912,160. This trade represents a 1.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 112,996 shares of company stock valued at $54,644,436 over the last three months. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Carpenter Technology

Large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Carpenter Technology during the second quarter worth about $3,834,623,000. Jennison Associates LLC bought a new position in shares of Carpenter Technology in the first quarter worth about $317,411,000. SurgoCap Partners LP bought a new position in shares of Carpenter Technology in the second quarter worth about $423,444,000. Barclays PLC lifted its holdings in shares of Carpenter Technology by 9.1% in the fourth quarter. Barclays PLC now owns 645,620 shares of the basic materials company's stock worth $203,267,000 after acquiring an additional 53,639 shares during the last quarter. Finally, Sands Capital Management LLC acquired a new stake in shares of Carpenter Technology in the 4th quarter valued at approximately $195,731,000. 92.03% of the stock is owned by institutional investors.

About Carpenter Technology

Carpenter Technology Corporation is a manufacturer of specialty metals and engineered products for applications that require high performance, durability, and resistance to extreme conditions. Founded in 1889, the company produces stainless steels, nickel- and cobalt-based alloys, titanium alloys, and other specialty materials.

Its product offerings include specialty wire, rod, bar, strip, billet, and powder, as well as precision-engineered components and additive-manufacturing materials.

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