Zacks Investment Research downgraded shares of The Carlyle Group (NASDAQ:CG) from a buy rating to a hold rating in a report released on Tuesday, Zacks.com reports. Zacks Investment Research currently has $54.00 price target on the financial services provider’s stock.
According to Zacks, “Shares of Carlyle have outperformed the industry in the past year. The company has an impressive earnings surprise history, having beaten the Zacks Consensus Estimate in all the trailing four quarters. Increasing assets under management (AUM) balance and fund management fees will support its organic growth. Efforts to expand operations by entering business avenues such as insurance and capital markets might drive top-line growth. Also, Carlyle aims to generate at least $450 million in net realized performance revenues over the next two quarters from already-announced sales. Given the strong liquidity position, the company is less exposed to credit risk in any economic downturn. However, a persistent rise in costs might deter bottom-line growth to an extent. Its capital deployment activities seem unsustainable, given a high debt/equity ratio.”
CG has been the subject of a number of other research reports. BMO Capital Markets raised The Carlyle Group from a market perform rating to an outperform rating and raised their price objective for the company from $59.00 to $65.00 in a research note on Monday, September 13th. Oppenheimer raised their price objective on The Carlyle Group from $69.00 to $77.00 and gave the company an outperform rating in a research note on Friday, October 29th. Morgan Stanley raised their price objective on The Carlyle Group from $53.00 to $57.00 and gave the company an equal weight rating in a research note on Friday, October 15th. Citigroup lifted their target price on The Carlyle Group from $66.00 to $73.00 and gave the company a buy rating in a research report on Tuesday, November 2nd. They noted that the move was a valuation call. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on The Carlyle Group from $63.00 to $70.00 and gave the company a buy rating in a research report on Friday, October 29th. Four equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of Buy and an average price target of $51.27.
The Carlyle Group (NASDAQ:CG) last released its earnings results on Thursday, October 28th. The financial services provider reported $1.54 EPS for the quarter, topping the consensus estimate of $1.04 by $0.50. The Carlyle Group had a return on equity of 36.86% and a net margin of 38.39%. The business had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.04 billion. During the same quarter last year, the firm posted $0.40 earnings per share. Equities analysts expect that The Carlyle Group will post 4.12 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, November 17th. Investors of record on Tuesday, November 9th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.95%. The ex-dividend date was Monday, November 8th. The Carlyle Group’s payout ratio is 12.72%.
In related news, Director Thomas S. Robertson sold 30,000 shares of the stock in a transaction dated Wednesday, November 3rd. The stock was sold at an average price of $56.68, for a total transaction of $1,700,400.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Carlyle Group Inc. sold 236,565 shares of the stock in a transaction dated Tuesday, October 26th. The shares were sold at an average price of $69.63, for a total value of $16,472,020.95. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 3,766,565 shares of company stock valued at $221,247,421. 36.30% of the stock is owned by company insiders.
Several large investors have recently made changes to their positions in CG. Spectrum Management Group LLC grew its stake in shares of The Carlyle Group by 92.3% in the 3rd quarter. Spectrum Management Group LLC now owns 160,883 shares of the financial services provider’s stock worth $7,607,000 after buying an additional 77,210 shares during the last quarter. Elevated Capital Advisors LLC bought a new position in The Carlyle Group in the 3rd quarter worth $1,037,000. Csenge Advisory Group bought a new position in The Carlyle Group in the 3rd quarter worth $349,000. Schonfeld Strategic Advisors LLC raised its holdings in The Carlyle Group by 112.8% in the 2nd quarter. Schonfeld Strategic Advisors LLC now owns 589,700 shares of the financial services provider’s stock worth $27,409,000 after purchasing an additional 312,600 shares during the period. Finally, Wells Fargo & Company MN raised its holdings in The Carlyle Group by 30.9% during the second quarter. Wells Fargo & Company MN now owns 388,680 shares of the financial services provider’s stock valued at $18,066,000 after acquiring an additional 91,659 shares during the period. 91.06% of the stock is owned by hedge funds and other institutional investors.
About The Carlyle Group
The Carlyle Group, Inc engages in a multi-product global alternative asset management. It operates though the following segments: Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions. The Corporate Private Equity segment focuses on buyout, and growth capital funds, which pursue a variety of corporate investments of different sizes and growth potentials.
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