Carpenter Technology (NYSE:CRS) Hits New 1-Year High – Here’s Why

Carpenter Technology Co. (NYSE:CRS)’s stock price hit a new 52-week high during trading on Tuesday . The company traded as high as $236.73 and last traded at $237.02, with a volume of 192724 shares changing hands. The stock had previously closed at $230.16.

Analysts Set New Price Targets

Several research firms have issued reports on CRS. BTIG Research set a $230.00 target price on Carpenter Technology in a research report on Friday, January 31st. Northcoast Research raised Carpenter Technology from a “sell” rating to a “neutral” rating in a research note on Wednesday, April 9th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Carpenter Technology from $240.00 to $245.00 and gave the stock an “overweight” rating in a research report on Monday, April 28th. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $168.00.

Carpenter Technology Stock Up 2.9%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.92 and a current ratio of 3.80. The company has a market cap of $11.79 billion, a PE ratio of 44.73, a PEG ratio of 0.93 and a beta of 1.33. The firm has a fifty day simple moving average of $193.94 and a 200 day simple moving average of $190.32.

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

Carpenter Technology Announces Dividend

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

Carpenter Technology announced that its board has initiated a stock repurchase plan on Thursday, April 24th that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the basic materials company to purchase up to 4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Carpenter Technology news, Director I Martin Inglis sold 3,433 shares of the stock in a transaction on Tuesday, April 29th. The shares were sold at an average price of $197.66, for a total transaction of $678,566.78. Following the sale, the director now directly owns 6,732 shares of the company’s stock, valued at approximately $1,330,647.12. This represents a 33.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Focus Partners Wealth raised its holdings in Carpenter Technology by 7.3% during the 1st quarter. Focus Partners Wealth now owns 4,615 shares of the basic materials company’s stock worth $836,000 after buying an additional 314 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Carpenter Technology by 1.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,785 shares of the basic materials company’s stock worth $18,985,000 after buying an additional 1,701 shares during the period. Legacy Advisory Services LLC purchased a new position in shares of Carpenter Technology during the first quarter valued at $219,000. Woodline Partners LP acquired a new position in Carpenter Technology during the first quarter valued at $4,050,000. Finally, United Services Automobile Association purchased a new stake in Carpenter Technology in the 1st quarter worth about $601,000. Institutional investors and hedge funds 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.