Franklin Street Advisors Inc. NC Sells 102,899 Shares of Carlyle Group Inc. $CG

Key Points

• Franklin Street Advisors reduced its Carlyle Group stake by 15.5%. The firm sold 102,899 shares and retained 560,327 shares worth approximately $23.6 million; institutional investors own 55.88% of CG.
• Carlyle exceeded second-quarter expectations with earnings of $1.07 per share versus the $0.91 consensus and revenue of $1.11 billion versus approximately $923.5 million expected. However, revenue declined 28.6% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $59.79, despite some target increases. Carlyle also declared a $0.35 quarterly dividend, representing an annualized yield of about 2.9%.

Franklin Street Advisors Inc. NC trimmed its stake in shares of Carlyle Group Inc. (NASDAQ:CG - Free Report) by 15.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 560,327 shares of the financial services provider's stock after selling 102,899 shares during the quarter. Carlyle Group comprises approximately 1.3% of Franklin Street Advisors Inc. NC's investment portfolio, making the stock its 27th biggest position. Franklin Street Advisors Inc. NC owned about 0.16% of Carlyle Group worth $23,595,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. WFA of San Diego LLC bought a new position in shares of Carlyle Group during the second quarter worth approximately $26,000. Quarry LP acquired a new position in Carlyle Group in the 3rd quarter valued at $33,000. Main Street Group LTD bought a new position in Carlyle Group during the 1st quarter worth $27,000. Brown Brothers Harriman & Co. bought a new stake in shares of Carlyle Group in the third quarter valued at about $41,000. Finally, Geneos Wealth Management Inc. grew its stake 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 valued at $28,000 after acquiring an additional 574 shares in the last quarter. 55.88% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts have weighed in on CG shares. UBS Group lifted their price objective on shares of Carlyle Group from $63.00 to $70.00 and gave the stock a "buy" rating in a research note on Thursday. BMO Capital Markets reaffirmed an "outperform" rating and set a $52.00 target price on shares of Carlyle Group in a report on Monday, July 13th. Royal Bank Of Canada dropped their price target on shares of Carlyle Group from $58.00 to $56.00 and set a "sector perform" rating for the company in a research report on Monday, July 13th. Evercore set a $51.00 price objective on Carlyle Group in a research note on Thursday. Finally, Citizens Jmp increased their target price on Carlyle Group from $70.00 to $73.00 and gave the stock a "market outperform" rating in a report on Thursday. Seven analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Carlyle Group has a consensus rating of "Hold" and a consensus price target of $59.79.

Carlyle Group Stock Performance

Shares of NASDAQ:CG opened at $47.79 on Monday. Carlyle Group Inc. has a 1 year low of $39.60 and a 1 year high of $69.85. The stock has a market capitalization of $17.20 billion, a price-to-earnings ratio of 49.78, a price-to-earnings-growth ratio of 1.77 and a beta of 1.83. The company has a debt-to-equity ratio of 1.91, a current ratio of 2.35 and a quick ratio of 2.55. The company's 50 day simple moving average is $44.79 and its 200 day simple moving average is $48.80.

Carlyle Group (NASDAQ:CG - Get Free Report) last released its earnings results on Tuesday, August 4th. The financial services provider reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.16. Carlyle Group had a return on equity of 22.52% and a net margin of 10.08%.The firm had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $923.50 million. During the same period in the prior year, the company earned $0.87 earnings per share. The company's quarterly revenue was down 28.6% on a year-over-year basis. As a group, research analysts predict that Carlyle Group Inc. will post 3.65 EPS for the current fiscal year.

Carlyle Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Investors of record on Monday, August 17th will be paid a $0.35 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.40 annualized dividend and a yield of 2.9%. Carlyle Group's dividend payout ratio (DPR) is 145.83%.

Key Stories Impacting Carlyle Group

Here are the key news stories impacting Carlyle Group this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Carlyle reported adjusted earnings of $1.07 per share versus the $0.91 consensus estimate, while revenue reached $1.11 billion, above expectations of approximately $924 million. Higher assets under management and performance revenues helped results, although expenses also increased year over year. Carlyle Q2 earnings report
• Positive Sentiment: Strategic partnership expands Carlyle’s credit business. Carlyle’s Global Credit platform will provide approximately $600 million in hybrid capital to Prime Capital Financial and receive a minority ownership interest. The deal gives Carlyle exposure to Prime’s future growth and values the financial-services company at more than $1.8 billion. Prime Capital Financial partnership announcement
• Positive Sentiment: Analyst price targets increased. Citizens JMP raised its target to $73 from $70 and maintained an outperform rating. Keefe, Bruyette & Woods also lifted its target to $50 from $47, though it retained a market-perform rating.
• Positive Sentiment: Quarterly dividend maintained. Carlyle declared a $0.35-per-share dividend, payable August 26 to shareholders of record August 17, supporting the stock’s income appeal with an indicated yield of about 2.9%.
• Neutral Sentiment: Carlyle Secured Lending posted additional beats. The affiliated lending company reported non-GAAP net investment income of $0.35 per share and total investment income of $62.09 million, both above estimates, and maintained its quarterly dividend. The direct effect on Carlyle Group’s consolidated results is limited.
• Negative Sentiment: KBW remains at Hold. The reaffirmed cautious rating suggests the firm sees limited near-term upside after the recent advance. Carlyle’s elevated valuation and year-over-year revenue decline remain potential concerns, offsetting the earnings beat and growth initiatives. KBW rating update

Carlyle Group Company Profile

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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