Carpenter Technology (NYSE:CRS) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• Carpenter Technology shares hit a new 52-week low after BTIG cut its price target from $620 to $470, despite maintaining a Buy rating. Other analysts also lowered targets, though the consensus remains a “Moderate Buy” with an average target of $476.43.
• The company reported adjusted earnings of $3.25 per share, beating the $3.04 consensus and rising from $2.43 a year earlier. However, revenue of $634.8 million was substantially below the roughly $830.9 million estimate, contributing to investor concerns.
• Insiders sold 112,996 shares worth approximately $54.6 million over the past quarter, including a sizable sale by CEO Tony Thene. Meanwhile, management maintained its fiscal 2027 free-cash-flow outlook of $400 million to $430 million and set a longer-term fiscal 2029 operating-income target of $1.2 billion to $1.3 billion.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report) reached a new 52-week low on Friday after BTIG Research lowered their price target on the stock from $620.00 to $470.00. BTIG Research currently has a buy rating on the stock. Carpenter Technology traded as low as $278.17 and last traded at $286.4760, with a volume of 86,231 shares trading hands. The stock had previously closed at $292.26.

A number of other research analysts have also recently commented on the stock. Wall Street Zen cut shares of Carpenter Technology from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Weiss Ratings lowered Carpenter Technology from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday. TD Cowen cut their target price on Carpenter Technology from $650.00 to $500.00 and set a "buy" rating for the company in a research report on Friday, October 9th. Susquehanna decreased their price target on Carpenter Technology from $680.00 to $600.00 and set a "positive" rating on the stock in a research note on Friday, July 31st. Finally, KeyCorp lowered their price target on Carpenter Technology from $608.00 to $465.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $476.43.

Insider Transactions at Carpenter Technology

In related news, CEO Tony R. Thene sold 57,456 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were 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 $212,737,440.90. This represents a 11.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 directly owned 1,953 shares of the company's stock, valued at approximately $963,121.95. This represents a 18.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 112,996 shares of company stock worth $54,644,436. Insiders own 2.90% of the company's stock.

Carpenter Technology News Roundup

Here are the key news stories impacting Carpenter Technology this week:

• Positive Sentiment: Carpenter reported record fiscal first-quarter operating income, up 28% year over year, supported by productivity improvements, favorable product mix and pricing actions. The Specialty Alloys Operations segment posted a 37.7% adjusted operating margin, while commercial aerospace bookings accelerated. Carpenter Technology fiscal 2027 first-quarter results
• Positive Sentiment: Adjusted earnings reached $3.25 per share, exceeding analyst expectations of roughly $2.97 to $3.04 and rising from $2.43 a year earlier. Revenue increased 8.8% year over year, and management maintained its fiscal 2027 free-cash-flow outlook of $400 million to $430 million. Carpenter Technology earnings results
• Positive Sentiment: Carpenter outlined a fiscal 2029 operating-income target of $1.2 billion to $1.3 billion, offering a longer-term growth catalyst if aerospace demand and operational improvements continue. Carpenter fiscal 2029 operating-income target
• Neutral Sentiment: The company named Jed Freeman as its next general counsel. The leadership change is unlikely to materially affect near-term earnings expectations. Carpenter Technology names next general counsel
• Negative Sentiment: Revenue of $634.8 million fell well short of the approximately $830.9 million consensus estimate. Investors appear to be treating the sales miss and valuation concerns as more significant than the EPS beat. Why Carpenter Technology stock fell after earnings
• Negative Sentiment: Deutsche Bank reduced its price target from $555 to $361, while BTIG lowered its target from $620 to $470. Both firms retained Buy ratings, but the reductions signal lower near-term expectations and add pressure to CRS shares. Deutsche Bank Carpenter Technology price target

Institutional Investors Weigh In On Carpenter Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Carpenter Technology in the 2nd quarter valued at about $3,834,623,000. Jennison Associates LLC bought a new position in Carpenter Technology during the 1st quarter worth approximately $317,411,000. SurgoCap Partners LP bought a new position in Carpenter Technology during the 2nd quarter worth approximately $423,444,000. Bank of New York Mellon Corp bought a new position in Carpenter Technology during the 2nd quarter worth approximately $231,252,000. Finally, William Blair Investment Management LLC acquired a new position in Carpenter Technology during the second quarter valued at approximately $205,165,000. Institutional investors own 92.03% of the company's stock.

Carpenter Technology Price Performance

The company has a debt-to-equity ratio of 0.31, a current ratio of 3.81 and a quick ratio of 2.23. The stock has a market cap of $14.03 billion, a P/E ratio of 26.91, a P/E/G ratio of 1.29 and a beta of 1.29. The company's 50 day simple moving average is $428.25 and its 200 day simple moving average is $480.10.

Carpenter Technology (NYSE:CRS - Get Free Report) last posted its earnings results on Thursday, October 22nd. The basic materials company reported $3.25 earnings per share for the quarter, topping the consensus estimate of $3.04 by $0.21. The company had revenue of $634.80 million for the quarter, compared to analyst estimates of $830.85 million. Carpenter Technology had a net margin of 16.96% and a return on equity of 26.46%. The business's revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period last year, the business posted $2.43 earnings per share. As a group, equities analysts forecast that Carpenter Technology Corporation will post 13.30 earnings per share for the current year.

Carpenter Technology Announces Dividend

The company also recently disclosed 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 dividend yield of 0.3%. Carpenter Technology's dividend payout ratio is currently 7.60%.

Carpenter Technology Company Profile

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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