Carpenter Technology (NYSE:CRS) Reaches New 12-Month High – Should You Buy?

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

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. KeyCorp upgraded Carpenter Technology from a “sector weight” rating to an “overweight” rating and set a $380.00 price objective on the stock in a report on Thursday, November 13th. Wall Street Zen raised shares of Carpenter Technology from a “hold” rating to a “buy” rating in a research report on Saturday, January 31st. TD Cowen reiterated a “buy” rating on shares of Carpenter Technology in a report on Friday, November 14th. Deutsche Bank Aktiengesellschaft set a $425.00 price target on shares of Carpenter Technology and gave the stock a “buy” rating in a research note on Friday, October 24th. Finally, Jones Trading initiated coverage on Carpenter Technology in a report on Wednesday, October 22nd. They issued a “buy” rating and a $400.00 price objective for the company. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $373.43.

Carpenter Technology Stock Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 4.25 and a quick ratio of 2.26. The stock has a 50-day moving average price of $325.74 and a 200-day moving average price of $288.18. The company has a market capitalization of $18.12 billion, a price-to-earnings ratio of 42.29, a PEG ratio of 1.32 and a beta of 1.30.

Carpenter Technology (NYSE:CRS) last posted its quarterly 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 return on equity of 23.63% and a net margin of 14.77%.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 prior year, the business earned $1.66 EPS. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. As a group, analysts forecast that Carpenter Technology Corporation will post 6.83 earnings per share for the current year.

Carpenter Technology Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Tuesday, January 27th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis 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 Transactions at Carpenter Technology

In other news, VP Elizabeth A. Socci sold 3,900 shares of the stock in a transaction that occurred on 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 approximately $3,082,072.50. This trade represents a 28.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Brian J. Malloy sold 43,688 shares of Carpenter Technology stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $304.45, for a total value of $13,300,811.60. Following the sale, the chief operating officer directly owned 78,875 shares of the company’s stock, valued at approximately $24,013,493.75. The trade was a 35.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 79,358 shares of company stock worth $24,254,008. 2.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CRS. Jag Capital Management LLC bought a new stake in shares of Carpenter Technology in the fourth quarter valued at about $322,000. Covestor Ltd raised its stake in Carpenter Technology by 334.3% in the 4th quarter. Covestor Ltd now owns 3,492 shares of the basic materials company’s stock worth $1,099,000 after purchasing an additional 2,688 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in Carpenter Technology by 1,752.7% in the 4th quarter. PNC Financial Services Group Inc. now owns 133,415 shares of the basic materials company’s stock valued at $42,004,000 after purchasing an additional 126,214 shares during the period. Larson Financial Group LLC grew its position in shares of Carpenter Technology by 379.2% during the 4th quarter. Larson Financial Group LLC now owns 254 shares of the basic materials company’s stock worth $80,000 after purchasing an additional 201 shares in the last quarter. Finally, HighTower Advisors LLC boosted its stake in shares of Carpenter Technology by 1.5% in the fourth quarter. HighTower Advisors LLC now owns 13,956 shares of the basic materials company’s stock valued at $4,394,000 after buying an additional 203 shares during the period. 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. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets.