Carpenter Technology Corporation (NYSE: CRS) received a positive boost from BTIG Research, which raised its target price for the stock from $305.00 to $365.00. The report, released on Monday, reflects a confident outlook on the company’s performance in the materials sector, leading BTIG to maintain a “buy” rating for Carpenter Technology.
Analysts from various firms have expressed similar optimism. TD Cowen also increased its price target for Carpenter Technology from $305.00 to $340.00, reiterating a “buy” rating in a report published on Friday. Weiss Ratings reaffirmed a “buy (b+)” rating for the company on October 8, while Deutsche Bank set a more ambitious price target of $425.00 alongside a “buy” rating on the same day. Additionally, Jones Trading initiated coverage on Carpenter Technology with a “buy” recommendation and a target price of $400.00.
Despite this positive sentiment, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on October 1. Overall, eight analysts have rated Carpenter Technology with a “buy,” while two analysts have issued a “hold” rating. MarketBeat.com reports that the average rating for the stock is “Moderate Buy,” with a consensus target price of $355.83.
Recent Stock Performance
As of Monday, Carpenter Technology’s stock opened at $318.56. Over the past year, the stock has experienced significant volatility, with a low of $138.61 and a high of $322.15. The company’s trading data shows a 50-day moving average price of $247.57 and a 200-day moving average price of $243.08. Financial metrics indicate a debt-to-equity ratio of 0.36, a quick ratio of 2.37, and a current ratio of 4.44. The market capitalization stands at $15.88 billion, with a price-to-earnings ratio of 38.94 and a beta of 1.46.
The company’s latest quarterly earnings results, announced on October 23, showed earnings of $2.43 per share, surpassing analysts’ expectations of $2.13 by $0.30. Carpenter Technology reported a revenue of $733.70 million for the quarter, slightly below analyst estimates of $741.18 million, marking a year-over-year revenue increase of 2.2%.
Dividend and Insider Transactions
In addition to its strong earnings report, Carpenter Technology announced a quarterly dividend of $0.20 per share, payable on December 4 to stockholders of record as of October 21. This dividend reflects an annualized payout of $0.80, representing a yield of 0.3%. The company’s dividend payout ratio is currently 9.78%.
In related news, Director Steven E. Karol sold 3,433 shares of the company’s stock on September 9 for an average price of $245.78, totaling approximately $843,762.74. This sale reduced his ownership to 180,000 shares, valued at around $44.24 million. CEO Tony R. Thene also sold 19,000 shares on August 18 for about $4.65 million, decreasing his holdings by 3.43%.
Over the last quarter, corporate insiders sold a total of 28,124 shares, valued at $6.89 million, with insiders currently owning 2.90% of the stock.
Institutional investors have shown strong interest in Carpenter Technology, with several hedge funds increasing their stakes. Invesco Ltd. raised its holdings by 37.1% in the first quarter, now owning 2,107,676 shares worth approximately $381.87 million. Other notable investors include Egerton Capital UK LLP and Advent International L.P., which have also significantly boosted their positions in the company.
Carpenter Technology Corporation specializes in the manufacture and distribution of specialty metals, operating across various regions, including the United States, Europe, and the Asia Pacific. The company is segmented into Specialty Alloys Operations and Performance Engineered Products, offering a variety of metals and components.
As analysts continue to monitor Carpenter Technology’s performance and market conditions, the company’s robust financial health and positive analyst outlook may position it for continued growth in the coming quarters.
