Carpenter Technology (NYSE:CRS) Shares Gap Down – Time to Sell?

Carpenter Technology Corporation (NYSE:CRS) gapped down prior to trading on Thursday. The stock had previously closed at $368.16, but opened at $330.00. Carpenter Technology shares last traded at $300.1760, with a volume of 427,473 shares traded.

Wall Street Analyst Weigh In

CRS has been the subject of a number of research reports. Wells Fargo & Company decreased their target price on Carpenter Technology from $540.00 to $430.00 and set an “equal weight” rating for the company in a research note on Wednesday, September 30th. TD Cowen lowered their target price on Carpenter Technology from $650.00 to $500.00 and set a “buy” rating for the company in a report on Friday, October 9th. Zacks Research cut Carpenter Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 15th. Susquehanna lowered their price objective on Carpenter Technology from $680.00 to $600.00 and set a “positive” rating for the company in a research note on Friday, July 31st. Finally, Wall Street Zen downgraded Carpenter Technology from a “buy” rating to a “hold” rating in a research note on Saturday, October 10th. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $519.29.

Carpenter Technology Stock Performance

The firm has a market cap of $14.33 billion, a price-to-earnings ratio of 27.52, a PEG ratio of 1.30 and a beta of 1.29. The stock’s fifty day moving average is $433.10 and its two-hundred day moving average is $480.80. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.23 and a current ratio of 3.81.

Carpenter Technology (NYSE:CRS) last posted its earnings results on Thursday, October 22nd. The basic materials company reported $3.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.04 by $0.21. Carpenter Technology had a net margin of 16.96% and a return on equity of 26.46%. Carpenter Technology’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter last year, the business posted $2.43 earnings per share. On average, analysts expect that Carpenter Technology Corporation will post 13.30 earnings per share for the current fiscal year.

Carpenter Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Tuesday, October 20th will be paid a $0.20 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $0.80 annualized dividend and a dividend yield of 0.3%. Carpenter Technology’s dividend payout ratio (DPR) is presently 7.60%.

Insider Activity

In related news, CEO Tony R. Thene sold 57,456 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $483.90, for a total value of $27,802,958.40. Following the completion of the transaction, the chief executive officer directly owned 439,631 shares of the company’s stock, valued at $212,737,440.90. This represents a 11.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ramin Younessi sold 438 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $493.15, for a total value of $215,999.70. Following the completion of the transaction, the director directly owned 1,953 shares of the company’s stock, valued at $963,121.95. This trade represents a 18.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 112,996 shares of company stock valued at $54,644,436. Insiders own 2.90% of the company’s stock.

Institutional Trading of Carpenter Technology

Several hedge funds have recently added to or reduced their stakes in the business. Keating Financial Advisory Services Inc. acquired a new position in Carpenter Technology during the 2nd quarter worth $29,000. Whittier Trust Co. of Nevada Inc. acquired a new position in shares of Carpenter Technology during the first quarter valued at $30,000. SJS Investment Consulting Inc. raised its stake in shares of Carpenter Technology by 81.8% during the first quarter. SJS Investment Consulting Inc. now owns 80 shares of the basic materials company’s stock valued at $32,000 after purchasing an additional 36 shares in the last quarter. Persistent Asset Partners Ltd bought a new stake in shares of Carpenter Technology during the second quarter valued at about $55,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Carpenter Technology during the second quarter valued at about $56,000. Institutional investors own 92.03% of the company’s stock.

Carpenter Technology Company Profile

Carpenter Technology Corporation is a manufacturer of premium specialty metals and engineered materials for demanding applications. The company produces stainless steels, nickel- and cobalt-based alloys, titanium, powder metals, and other high-performance materials designed to withstand extreme temperatures, corrosion, stress, and wear.

Its products are used in aerospace and defense, medical devices, energy, transportation, industrial equipment, and other specialized markets. Carpenter Technology supplies materials in forms such as bar, wire, strip, sheet, and powder, and also provides processing and engineered component solutions through its performance-engineered products operations.

Founded in 1889 as Carpenter Steel Company, the company has developed a global customer base supported by manufacturing, research, and service operations in the United States and international markets.