Carpenter Technology (NYSE:CRS) Stock Price Up 7.7% - Should You Buy?

Key Points

• Carpenter Technology shares jumped 7.7% to about $301.67, although trading volume was 78% below the average daily level.
• Analysts maintain a “Moderate Buy” consensus, with six Buy and three Hold ratings and an average price target of $476.43; however, several firms recently lowered their targets or ratings.
• The company beat quarterly EPS estimates with $3.25 versus $3.04 expected, while revenue reached $634.8 million. Carpenter also declared a $0.20 quarterly dividend, but insiders sold roughly $54.6 million of stock during the last quarter.

Carpenter Technology Corporation (NYSE:CRS - Get Free Report) traded up 7.7% on Thursday. The company traded as high as $298.72 and last traded at $301.6670. Approximately 174,583 shares were traded during trading, a decline of 78% from the average daily volume of 794,971 shares. The stock had previously closed at $280.00.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on CRS shares. BTIG Research reduced their price objective on shares of Carpenter Technology from $620.00 to $470.00 and set a "buy" rating on the stock in a report on Friday, October 23rd. Wells Fargo & Company dropped their target price on shares of Carpenter Technology from $540.00 to $430.00 and set an "equal weight" rating for the company in a report on Wednesday, September 30th. KeyCorp cut shares of Carpenter Technology from an "overweight" rating to a "sector weight" rating in a research report on Monday. Weiss Ratings lowered Carpenter Technology from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, October 22nd. Finally, JPMorgan Chase & Co. cut their target price on shares of Carpenter Technology from $700.00 to $520.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 14th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Carpenter Technology has an average rating of "Moderate Buy" and an average target price of $476.43.

Carpenter Technology Price Performance

The company has a market capitalization of $15.10 billion, a PE ratio of 26.85, a P/E/G ratio of 0.99 and a beta of 1.29. The company has a current ratio of 3.94, a quick ratio of 2.05 and a debt-to-equity ratio of 0.32. The stock has a fifty day simple moving average of $409.27 and a 200-day simple moving average of $442.79.

Carpenter Technology (NYSE:CRS - Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The basic materials company reported $3.25 EPS for the quarter, beating analysts' consensus estimates of $3.04 by $0.21. The business had revenue of $634.80 million for the quarter, compared to the consensus estimate of $830.85 million. Carpenter Technology had a return on equity of 27.50% and a net margin of 17.87%. The business's revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.43 EPS. Equities analysts anticipate that Carpenter Technology Corporation will post 13.34 earnings per share for the current year.

Carpenter Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Tuesday, October 20th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, October 20th. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. Carpenter Technology's dividend payout ratio (DPR) is presently 7.05%.

Insider Transactions at Carpenter Technology

In other news, CEO Tony Thene sold 57,456 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $483.90, for a total value of $27,802,958.40. Following the completion of the transaction, the chief executive officer owned 439,631 shares in the company, valued at approximately $212,737,440.90. This represents a 11.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Steven Karol sold 3,275 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $474.08, for a total transaction of $1,552,612.00. Following the completion of the transaction, the director directly owned 177,000 shares in the company, valued at $83,912,160. This trade represents a 1.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 112,996 shares of company stock worth $54,644,436. 2.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Carpenter Technology

Hedge funds have recently made changes to their positions in the company. Sumitomo Mitsui Trust Group Inc. acquired a new stake in Carpenter Technology in the third quarter valued at $37,836,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Carpenter Technology in the 3rd quarter valued at about $190,000. Vise Technologies Inc. lifted its position in shares of Carpenter Technology by 12.8% during the third quarter. Vise Technologies Inc. now owns 2,224 shares of the basic materials company's stock worth $865,000 after purchasing an additional 253 shares during the last quarter. State of Wyoming grew its stake in Carpenter Technology by 5.4% in the third quarter. State of Wyoming now owns 1,550 shares of the basic materials company's stock worth $603,000 after purchasing an additional 79 shares in the last quarter. Finally, D.A. Davidson & CO. bought a new stake in Carpenter Technology in the third quarter valued at about $831,000. Hedge funds and other institutional investors own 92.03% of the company's stock.

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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