Vanguard Group Inc. Sells 246,915 Shares of Carpenter Technology Corporation (NYSE:CRS)

Key Points

• Vanguard Group Inc. reduced its stake in Carpenter Technology Corporation by 4.7%, selling 246,915 shares, and now owns 5,003,819 shares valued at approximately $906.6 million.
• Several brokerage firms, including J.P. Morgan and Benchmark, have increased their price targets for Carpenter Technology, with consensus estimates indicating a target price of $278.33.
• The company authorized a $400 million share repurchase plan, signaling management's belief that the stock is undervalued, with 92.03% of shares owned by institutional investors.

Vanguard Group Inc. trimmed its stake in shares of Carpenter Technology Corporation (NYSE:CRS - Free Report) by 4.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,003,819 shares of the basic materials company's stock after selling 246,915 shares during the quarter. Vanguard Group Inc. owned about 10.05% of Carpenter Technology worth $906,592,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in CRS. IMA Advisory Services Inc. bought a new stake in shares of Carpenter Technology in the 1st quarter worth approximately $36,000. Bessemer Group Inc. raised its holdings in shares of Carpenter Technology by 50.3% in the 1st quarter. Bessemer Group Inc. now owns 230 shares of the basic materials company's stock worth $42,000 after purchasing an additional 77 shares in the last quarter. Ameriflex Group Inc. bought a new stake in shares of Carpenter Technology in the 4th quarter worth approximately $44,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Carpenter Technology in the first quarter worth approximately $49,000. Finally, Versant Capital Management Inc grew its position in Carpenter Technology by 27.3% during the first quarter. Versant Capital Management Inc now owns 359 shares of the basic materials company's stock valued at $65,000 after purchasing an additional 77 shares in the last quarter. 92.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages recently commented on CRS. Cowen reaffirmed a "buy" rating on shares of Carpenter Technology in a research report on Thursday, June 12th. BTIG Research restated a "buy" rating on shares of Carpenter Technology in a research note on Monday, August 4th. JPMorgan Chase & Co. upped their target price on shares of Carpenter Technology from $245.00 to $305.00 and gave the company an "overweight" rating in a research note on Tuesday, June 17th. Finally, Benchmark boosted their price target on shares of Carpenter Technology from $250.00 to $300.00 and gave the company a "buy" rating in a report on Monday, June 9th. One equities research analyst has rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $278.33.

Insider Transactions at Carpenter Technology

In related news, Director Anastasios John Hart sold 1,000 shares of the stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $243.72, for a total transaction of $243,720.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.90% of the company's stock.

Carpenter Technology Trading Down 1.4%

Carpenter Technology stock traded down $3.51 during trading hours on Friday, reaching $242.96. 837,350 shares of the company's stock traded hands, compared to its average volume of 934,505. The company has a debt-to-equity ratio of 0.37, a quick ratio of 2.01 and a current ratio of 3.65. Carpenter Technology Corporation has a fifty-two week low of $129.57 and a fifty-two week high of $290.84. The firm has a market capitalization of $12.11 billion, a price-to-earnings ratio of 32.74, a PEG ratio of 1.14 and a beta of 1.44. The firm's 50 day moving average is $265.06 and its 200-day moving average is $221.04.

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

Carpenter Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Tuesday, August 26th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Tuesday, August 26th. Carpenter Technology's dividend payout ratio is presently 10.78%.

Carpenter Technology declared that its Board of Directors has authorized a stock repurchase program on Thursday, April 24th that allows the company to buyback $400.00 million in shares. This buyback authorization allows the basic materials company to purchase up to 4% of its shares through open market purchases. Shares buyback programs are often a sign that the company's leadership believes its shares are undervalued.

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.