Carpenter Technology (NYSE:CRS) Hits New 1-Year High – Still a Buy?

Carpenter Technology Corporation (NYSE:CRS) reached a new 52-week high on Friday . The company traded as high as $366.02 and last traded at $358.40, with a volume of 41626 shares. The stock had previously closed at $348.65.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Wall Street Zen upgraded Carpenter Technology from a “hold” rating to a “buy” rating in a research note on Saturday, January 31st. Deutsche Bank Aktiengesellschaft set a $425.00 price objective on shares of Carpenter Technology and gave the stock a “buy” rating in a research note on Friday, October 24th. Jones Trading assumed coverage on shares of Carpenter Technology in a research report on Wednesday, October 22nd. They set a “buy” rating and a $400.00 price target for the company. JPMorgan Chase & Co. increased their price target on Carpenter Technology from $388.00 to $394.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Finally, TD Cowen restated a “buy” rating on shares of Carpenter Technology in a report on Friday, November 14th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $373.43.

Carpenter Technology Trading Up 4.9%

The company has a 50-day simple moving average of $326.86 and a 200 day simple moving average of $288.87. The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.26 and a current ratio of 4.25. The company has a market capitalization of $18.22 billion, a P/E ratio of 42.49, a P/E/G ratio of 1.44 and a beta of 1.30.

Carpenter Technology (NYSE:CRS) last posted its earnings results on Thursday, January 29th. The basic materials company reported $2.33 earnings per share for the quarter, beating analysts’ consensus estimates of $2.20 by $0.13. Carpenter Technology had a net margin of 14.77% and a return on equity of 23.63%. The business had revenue of $589.10 million for the quarter, compared to analysts’ expectations of $733.76 million. During the same quarter in the previous year, the firm posted $1.66 earnings per share. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. Sell-side analysts expect that Carpenter Technology Corporation will post 6.83 earnings per share for the current year.

Carpenter Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Tuesday, January 27th will be given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Tuesday, January 27th. Carpenter Technology’s dividend payout ratio (DPR) is currently 9.29%.

Insider Buying and Selling at Carpenter Technology

In related news, COO Brian J. Malloy sold 4,130 shares of the company’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $303.52, for a total transaction of $1,253,537.60. Following the sale, the chief operating officer owned 78,875 shares in the company, valued at approximately $23,940,140. This represents a 4.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Elizabeth A. Socci sold 3,900 shares of the business’s stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $321.25, for a total transaction of $1,252,875.00. Following the transaction, the vice president owned 9,594 shares in the company, valued at $3,082,072.50. This represents a 28.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 79,358 shares of company stock worth $24,254,008. Company insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Carpenter Technology

Several institutional investors and hedge funds have recently modified their holdings of the stock. Aspex Management HK Ltd bought a new stake in shares of Carpenter Technology in the third quarter valued at approximately $136,215,000. William Blair Investment Management LLC acquired a new stake in Carpenter Technology in the second quarter valued at about $134,790,000. TOMS Capital Investment Management LP acquired a new stake in shares of Carpenter Technology in the 2nd quarter valued at approximately $106,683,000. UBS Group AG boosted its position in Carpenter Technology by 171.2% in the fourth quarter. UBS Group AG now owns 606,501 shares of the basic materials company’s stock valued at $190,951,000 after buying an additional 382,865 shares in the last quarter. Finally, Qube Research & Technologies Ltd boosted its stake in shares of Carpenter Technology by 111.6% during the third quarter. Qube Research & Technologies Ltd now owns 617,948 shares of the basic materials company’s stock valued at $151,731,000 after purchasing an additional 325,919 shares in the last quarter. 92.03% of the stock is currently owned by institutional investors and hedge funds.

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. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets.