Algebris UK Ltd. Invests $50.46 Million in Carlyle Group Inc. $CG

Key Points

• Algebris UK Ltd. opened a new position in Carlyle Group, buying 853,254 shares worth about $50.46 million. The stake represents 2.4% of Algebris’s portfolio and makes Carlyle its fifth-largest holding.
• Wall Street sentiment on Carlyle is mixed, with analysts setting a consensus rating of Hold and an average price target of $62. Recent moves included rating downgrades from CFRA and Wall Street Zen, while UBS and others still have more constructive views.
• Carlyle recently missed earnings and revenue estimates for the quarter, reporting $0.89 EPS on $750.9 million in revenue versus expectations of $0.91 EPS and $1.01 billion in revenue. The company also announced a quarterly dividend of $0.35 per share, implying a 3.1% annual yield.

Algebris UK Ltd. purchased a new position in Carlyle Group Inc. (NASDAQ:CG - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 853,254 shares of the financial services provider's stock, valued at approximately $50,459,000. Carlyle Group comprises 2.4% of Algebris UK Ltd.'s investment portfolio, making the stock its 5th biggest position. Algebris UK Ltd. owned 0.24% of Carlyle Group as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. WFA of San Diego LLC purchased a new position in shares of Carlyle Group in the second quarter worth $26,000. Geneos Wealth Management Inc. grew its holdings in shares of Carlyle Group by 755.3% in the first quarter. Geneos Wealth Management Inc. now owns 650 shares of the financial services provider's stock worth $28,000 after acquiring an additional 574 shares during the period. Bernard Wealth Management Corp. bought a new stake in shares of Carlyle Group in the fourth quarter worth $30,000. Quarry LP bought a new stake in shares of Carlyle Group in the third quarter worth $33,000. Finally, Brown Brothers Harriman & Co. bought a new stake in shares of Carlyle Group in the third quarter worth $41,000. Hedge funds and other institutional investors own 55.88% of the company's stock.

Wall Street Analyst Weigh In

CG has been the subject of several research analyst reports. Cfra lowered Carlyle Group to a "sell" rating and set a $45.00 price objective for the company. in a report on Friday, May 8th. UBS Group cut their price objective on Carlyle Group from $81.00 to $65.00 and set a "buy" rating for the company in a report on Friday, February 20th. Wall Street Zen lowered Carlyle Group from a "hold" rating to a "sell" rating in a report on Saturday, May 16th. Morgan Stanley cut their price objective on Carlyle Group from $71.00 to $66.00 and set an "equal weight" rating for the company in a report on Tuesday, April 21st. Finally, Evercore set a $56.00 price objective on Carlyle Group in a report on Tuesday, April 21st. Seven investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Carlyle Group has an average rating of "Hold" and a consensus price target of $62.00.

Carlyle Group Stock Performance

Shares of CG opened at $45.32 on Thursday. The company has a quick ratio of 2.55, a current ratio of 2.55 and a debt-to-equity ratio of 1.92. The business has a 50-day simple moving average of $48.39 and a two-hundred day simple moving average of $53.96. The stock has a market cap of $16.31 billion, a price-to-earnings ratio of 31.04, a PEG ratio of 1.55 and a beta of 1.89. Carlyle Group Inc. has a 52 week low of $43.19 and a 52 week high of $69.85.

Carlyle Group (NASDAQ:CG - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $0.89 EPS for the quarter, missing analysts' consensus estimates of $0.91 by ($0.02). The company had revenue of $750.90 million during the quarter, compared to analysts' expectations of $1.01 billion. Carlyle Group had a return on equity of 20.95% and a net margin of 13.46%.The business's quarterly revenue was down 28.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.14 EPS. On average, analysts expect that Carlyle Group Inc. will post 4.04 EPS for the current year.

Carlyle Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Monday, May 18th will be paid a $0.35 dividend. The ex-dividend date of this dividend is Monday, May 18th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.1%. Carlyle Group's dividend payout ratio is 95.89%.

Insider Buying and Selling at Carlyle Group

In other news, Director David M. Rubenstein sold 500,000 shares of the company's stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $46.68, for a total value of $23,340,000.00. Following the completion of the transaction, the director owned 27,399,644 shares of the company's stock, valued at $1,279,015,381.92. This represents a 1.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 26.30% of the stock is currently owned by company insiders.

About Carlyle Group

The Carlyle Group NASDAQ: CG is a global alternative asset manager that invests across a range of strategies including private equity, real assets (such as real estate and infrastructure), global credit, and investment solutions. Founded in 1987 and headquartered in Washington, DC, Carlyle raises and manages investment funds that acquire, operate and exit companies and assets on behalf of institutional and private investors. The firm is publicly traded on the Nasdaq exchange and operates as an asset manager and investment advisor rather than as an operating company.

Carlyle's core activities include sourcing and executing private equity buyouts and growth investments, originating and managing credit and financing solutions, and acquiring and operating real asset portfolios.

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