Carpenter Technology Corporation (NYSE:CRS) Stock Has Average Target Price of $476.43 According to Brokerages

Key Points

• Analyst sentiment is moderately positive: Six of nine analysts rate Carpenter Technology a buy and three recommend holding, with an average 12-month price target of $476.43.
• Quarterly results were mixed: EPS of $3.25 beat the $3.04 consensus, while revenue of $634.8 million came in below analysts’ $830.85 million estimate; revenue nevertheless rose 8.8% year over year.
• Shares have fallen substantially from their high: CRS opened at $278.21, compared with a 52-week range of $270.49 to $625.98. Company insiders sold 112,996 shares worth about $54.6 million over the prior quarter.

Shares of Carpenter Technology Corporation (NYSE:CRS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the nine analysts that are presently covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $476.43.

Several equities research analysts have commented on CRS shares. BTIG Research lowered their price target on shares of Carpenter Technology from $620.00 to $470.00 and set a "buy" rating on the stock in a report on Friday, October 23rd. KeyCorp cut shares of Carpenter Technology from an "overweight" rating to a "sector weight" rating in a research note on Monday, October 26th. Wells Fargo & Company cut their price target on Carpenter Technology from $540.00 to $430.00 and set an "equal weight" rating for the company in a report on Wednesday, September 30th. Zacks Research lowered shares of Carpenter Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 15th. Finally, Susquehanna restated a "positive" rating and issued a $450.00 price objective on shares of Carpenter Technology in a report on Friday, October 23rd.

Insider Activity

In other news, Director Ramin Younessi sold 438 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $493.15, for a total transaction of $215,999.70. Following the completion of the sale, the director owned 1,953 shares in the company, valued at $963,121.95. This trade represents a 18.32% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Tony Thene sold 57,456 shares of the business's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $483.90, for a total transaction of $27,802,958.40. Following the transaction, the chief executive officer owned 439,631 shares in the company, valued at approximately $212,737,440.90. This trade represents a 11.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 112,996 shares of company stock worth $54,644,436 over the last quarter. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of CRS. BlackRock Inc. purchased a new stake in shares of Carpenter Technology in the second quarter worth approximately $3,834,623,000. Jennison Associates LLC purchased a new stake in Carpenter Technology during the 1st quarter valued at approximately $317,411,000. SurgoCap Partners LP purchased a new stake in Carpenter Technology during the second quarter worth $423,444,000. Bank of New York Mellon Corp acquired a new stake in Carpenter Technology in the 2nd quarter worth about $231,252,000. Finally, William Blair Investment Management LLC purchased a new stake in shares of Carpenter Technology during the second quarter valued at approximately $205,165,000. 92.03% of the stock is owned by institutional investors.

Carpenter Technology Stock Down 0.2%

NYSE:CRS opened at $278.21 on Friday. The stock has a market cap of $13.78 billion, a price-to-earnings ratio of 24.53, a PEG ratio of 1.03 and a beta of 1.43. Carpenter Technology has a 1 year low of $270.49 and a 1 year high of $625.98. The stock has a 50-day moving average price of $381.03 and a two-hundred day moving average price of $441.36. The company has a current ratio of 3.94, a quick ratio of 2.05 and a debt-to-equity ratio of 0.32.

Carpenter Technology (NYSE:CRS - Get Free Report) last issued its earnings results on Thursday, October 22nd. The basic materials company reported $3.25 EPS for the quarter, beating analysts' consensus estimates of $3.04 by $0.21. The business had revenue of $634.80 million during the quarter, compared to analyst estimates of $830.85 million. Carpenter Technology had a return on equity of 27.50% and a net margin of 17.87%. The firm's revenue was up 8.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.43 EPS. As a group, equities analysts expect that Carpenter Technology will post 13.41 earnings per share for the current year.

Carpenter Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Tuesday, October 20th will be given a $0.20 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. Carpenter Technology's dividend payout ratio (DPR) is currently 7.05%.

About Carpenter Technology

Carpenter Technology Corporation is a manufacturer of premium specialty metals and engineered materials for demanding applications. The company produces stainless steels, nickel- and cobalt-based alloys, titanium, powder metals, and other high-performance materials designed to withstand extreme temperatures, corrosion, stress, and wear.

Its products are used in aerospace and defense, medical devices, energy, transportation, industrial equipment, and other specialized markets. Carpenter Technology supplies materials in forms such as bar, wire, strip, sheet, and powder, and also provides processing and engineered component solutions through its performance-engineered products operations.

Founded in 1889 as Carpenter Steel Company, the company has developed a global customer base supported by manufacturing, research, and service operations in the United States and international markets.

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