Zacks Investment Research Lowers Carpenter Technology (NYSE:CRS) to Sell

Zacks Investment Research cut shares of Carpenter Technology (NYSE:CRS) from a hold rating to a sell rating in a report published on Wednesday, Zacks.com reports. The brokerage currently has $54.00 price target on the basic materials company’s stock.

According to Zacks, “Carpenter Technology’s backlog has improved sequentially for 12 straight quarters. The Aerospace and Defense and Medical segments are poised well for growth on strong underlying demand. However, weak transportation and global light vehicle markets and challenges in the Amega West business will dent its top-line performance in the near term. Higher SG&A expenses will also impact margins. Nevertheless, the company will benefit from efforts to strengthen customer relationships and continued execution of commercial and manufacturing strategy. The company’s strong balance sheet provides it with the strategic flexibility to strengthen long-term growth profile by making acquisitions and investing in targeted areas like additive manufacturing and soft magnetics. Its estimates for the current fiscal have undergone positive revisions of late.”

Separately, ValuEngine upgraded shares of Carpenter Technology from a sell rating to a hold rating in a research note on Friday, August 2nd. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the company’s stock. Carpenter Technology currently has an average rating of Hold and a consensus price target of $54.00.

CRS stock opened at $51.54 on Wednesday. The company has a current ratio of 2.97, a quick ratio of 1.08 and a debt-to-equity ratio of 0.36. The company has a market cap of $2.48 billion, a price-to-earnings ratio of 15.88 and a beta of 2.36. Carpenter Technology has a 12-month low of $32.77 and a 12-month high of $56.33. The firm has a 50 day moving average of $51.29 and a 200-day moving average of $47.93.

Carpenter Technology (NYSE:CRS) last posted its quarterly earnings results on Thursday, August 1st. The basic materials company reported $1.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.06. Carpenter Technology had a net margin of 7.02% and a return on equity of 10.33%. The company had revenue of $641.40 million for the quarter, compared to analyst estimates of $637.84 million. During the same period last year, the business posted $0.87 EPS. The business’s quarterly revenue was up 3.8% on a year-over-year basis. Sell-side analysts forecast that Carpenter Technology will post 3.85 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 5th. Investors of record on Tuesday, October 22nd will be issued a $0.20 dividend. The ex-dividend date of this dividend is Monday, October 21st. This represents a $0.80 dividend on an annualized basis and a yield of 1.55%. Carpenter Technology’s dividend payout ratio (DPR) is presently 23.12%.

In related news, Director Steven E. Karol sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $55.00, for a total value of $275,000.00. Following the completion of the transaction, the director now owns 230,543 shares in the company, valued at approximately $12,679,865. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 3.90% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of Carpenter Technology by 1.5% during the 2nd quarter. Vanguard Group Inc. now owns 4,583,098 shares of the basic materials company’s stock worth $219,897,000 after purchasing an additional 66,079 shares during the last quarter. Northern Trust Corp lifted its holdings in Carpenter Technology by 6.6% during the 2nd quarter. Northern Trust Corp now owns 1,219,898 shares of the basic materials company’s stock valued at $58,531,000 after purchasing an additional 76,053 shares during the last quarter. Invesco Ltd. lifted its holdings in Carpenter Technology by 5.1% during the 2nd quarter. Invesco Ltd. now owns 1,123,034 shares of the basic materials company’s stock valued at $53,884,000 after purchasing an additional 54,307 shares during the last quarter. Granite Investment Partners LLC raised its stake in shares of Carpenter Technology by 6.2% in the second quarter. Granite Investment Partners LLC now owns 517,254 shares of the basic materials company’s stock worth $24,818,000 after acquiring an additional 30,235 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Carpenter Technology by 2.6% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 472,756 shares of the basic materials company’s stock worth $22,683,000 after buying an additional 12,085 shares during the period. Institutional investors and hedge funds own 92.25% of the company’s stock.

About Carpenter Technology

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. The company operates through two segments, Specialty Alloys Operations and Performance Engineered Products. It offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as drilling tools; and metal powders and parts.

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