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

Carpenter Technology Co. (NYSE:CRS)’s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $236.06 and last traded at $235.34, with a volume of 264349 shares traded. The stock had previously closed at $231.88.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Northcoast Research raised Carpenter Technology from a “sell” rating to a “neutral” rating in a research note on Wednesday, April 9th. BTIG Research set a $230.00 price target on Carpenter Technology in a research note on Friday, January 31st. Finally, JPMorgan Chase & Co. lifted their price target on Carpenter Technology from $240.00 to $245.00 and gave the stock an “overweight” rating in a research note on Monday, April 28th. One analyst has rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $168.00.

Carpenter Technology Price Performance

The stock has a 50 day simple moving average of $188.18 and a two-hundred day simple moving average of $187.63. The company has a market cap of $11.74 billion, a price-to-earnings ratio of 44.50, a price-to-earnings-growth ratio of 0.93 and a beta of 1.33. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.80 and a quick ratio of 1.92.

Carpenter Technology (NYSE:CRS) last announced its quarterly earnings results on Thursday, April 24th. The basic materials company reported $1.88 EPS for the quarter, beating the consensus estimate of $1.74 by $0.14. Carpenter Technology had a return on equity of 19.88% and a net margin of 9.34%. The business had revenue of $727.00 million for the quarter, compared to analyst estimates of $729.67 million. During the same quarter in the prior year, the company posted $1.19 EPS. The company’s quarterly revenue was up 6.1% on a year-over-year basis. On average, equities research analysts predict that Carpenter Technology Co. will post 6.83 earnings per share for the current fiscal year.

Carpenter Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Tuesday, April 22nd will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.34%. The ex-dividend date of this dividend is Tuesday, April 22nd. Carpenter Technology’s dividend payout ratio (DPR) is presently 11.33%.

Carpenter Technology declared that its Board of Directors has approved a stock buyback plan on Thursday, April 24th that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the basic materials company to buy up to 4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, Director I Martin Inglis sold 3,433 shares of the company’s stock in a transaction on Tuesday, April 29th. The stock was sold at an average price of $197.66, for a total value of $678,566.78. Following the transaction, the director now owns 6,732 shares of the company’s stock, valued at $1,330,647.12. This represents a 33.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Carpenter Technology

Institutional investors and hedge funds have recently modified their holdings of the company. Pictet Asset Management Holding SA raised its holdings in shares of Carpenter Technology by 14.6% in the 4th quarter. Pictet Asset Management Holding SA now owns 6,865 shares of the basic materials company’s stock valued at $1,165,000 after buying an additional 877 shares during the period. Manuka Financial LLC purchased a new stake in shares of Carpenter Technology in the 4th quarter valued at $368,000. Park Avenue Securities LLC purchased a new stake in shares of Carpenter Technology in the 4th quarter valued at $419,000. XML Financial LLC raised its holdings in shares of Carpenter Technology by 215.3% in the 4th quarter. XML Financial LLC now owns 9,460 shares of the basic materials company’s stock valued at $1,605,000 after buying an additional 6,460 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in shares of Carpenter Technology in the 4th quarter valued at $18,731,000. Hedge funds and other institutional investors own 92.03% of the company’s stock.

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.