Carlyle Group (NASDAQ:CG) Hits New 1-Year Low Following Analyst Downgrade

Key Points

• Carlyle Group shares hit a new 52-week low of $37.05 after TD Cowen cut its price target from $54 to $42 and maintained a “hold” rating.
• Analyst sentiment remains mixed, but the overall consensus is “Hold,” with an average price target of $56.07. Eight analysts rate the stock a Buy, eight a Hold, and one a Sell.
• Director David Rubenstein sold 400,000 shares for approximately $17.1 million, while institutional investors own 55.88% of Carlyle’s stock. The company also reported quarterly earnings that exceeded expectations and pays a $0.35 quarterly dividend, yielding about 3.7%.

Carlyle Group Inc. (NASDAQ:CG - Get Free Report) shares reached a new 52-week low on Tuesday after TD Cowen lowered their price target on the stock from $54.00 to $42.00. TD Cowen currently has a hold rating on the stock. Carlyle Group traded as low as $37.05 and last traded at $37.3230, with a volume of 1,361,312 shares changing hands. The stock had previously closed at $38.25.

Several other equities research analysts have also commented on the stock. Citizens Jmp increased their price objective on shares of Carlyle Group from $70.00 to $73.00 and gave the company a "market outperform" rating in a research note on Thursday, August 6th. Evercore set a $51.00 target price on Carlyle Group in a research note on Thursday, August 6th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $52.00 target price on shares of Carlyle Group in a report on Monday, July 13th. Wall Street Zen downgraded Carlyle Group from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Wells Fargo & Company started coverage on Carlyle Group in a report on Friday, October 2nd. They set an "equal weight" rating and a $43.00 price target on the stock. Eight equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Carlyle Group currently has a consensus rating of "Hold" and an average target price of $56.07.

Insiders Place Their Bets

In other Carlyle Group news, Director David Rubenstein sold 400,000 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $42.74, for a total transaction of $17,096,000.00. Following the completion of the transaction, the director owned 26,899,644 shares in the company, valued at $1,149,690,784.56. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 25.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Carlyle Group

Several hedge funds have recently bought and sold shares of the company. Sound Income Strategies LLC increased its holdings in shares of Carlyle Group by 1.8% in the third quarter. Sound Income Strategies LLC now owns 129,024 shares of the financial services provider's stock worth $4,953,000 after purchasing an additional 2,290 shares during the period. GAMMA Investing LLC boosted its stake in Carlyle Group by 10.8% during the third quarter. GAMMA Investing LLC now owns 8,615 shares of the financial services provider's stock valued at $342,000 after buying an additional 837 shares during the period. Farther Finance Advisors LLC grew its position in Carlyle Group by 30.8% during the third quarter. Farther Finance Advisors LLC now owns 10,615 shares of the financial services provider's stock worth $421,000 after buying an additional 2,500 shares in the last quarter. Moody National Bank Trust Division grew its position in Carlyle Group by 36.1% during the third quarter. Moody National Bank Trust Division now owns 24,272 shares of the financial services provider's stock worth $963,000 after buying an additional 6,432 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its stake in Carlyle Group by 22.7% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 5,254 shares of the financial services provider's stock worth $221,000 after acquiring an additional 971 shares during the last quarter. Hedge funds and other institutional investors own 55.88% of the company's stock.

Carlyle Group Price Performance

The business has a 50 day simple moving average of $44.49 and a two-hundred day simple moving average of $45.68. The firm has a market capitalization of $13.32 billion, a P/E ratio of 38.94, a price-to-earnings-growth ratio of 1.12 and a beta of 1.88. The company has a debt-to-equity ratio of 1.91, a quick ratio of 2.35 and a current ratio of 2.35.

Carlyle Group (NASDAQ:CG - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.91 by $0.16. The firm had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $923.50 million. Carlyle Group had a return on equity of 22.52% and a net margin of 10.08%. The company's revenue for the quarter was down 28.6% on a year-over-year basis. During the same quarter last year, the company posted $0.87 EPS. On average, sell-side analysts expect that Carlyle Group Inc. will post 3.58 EPS for the current fiscal year.

Carlyle Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Monday, August 17th were given a dividend of $0.35 per share. The ex-dividend date was Monday, August 17th. This represents a $1.40 annualized dividend and a yield of 3.7%. Carlyle Group's payout ratio is presently 145.83%.

Carlyle Group Company Profile

The Carlyle Group Inc is a global alternative asset management firm that invests across private equity, credit and investment solutions. The company manages funds and investment vehicles for institutional investors, private wealth clients and other investors, with strategies focused on private markets and long-term value creation.

Carlyle's investment activities include corporate buyouts, growth capital, middle-market lending, structured credit, real assets and secondaries. Through its investment solutions business, the firm also provides access to private-market strategies and manages portfolios of private equity interests and other alternative investments.

Founded in 1987 by William E.

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