Insider Decision: STEVEN KAROL Exercises Options At Carpenter Technology For $728K

Highlighted on September 10, it was unveiled in an SEC filing that KAROL, Director at Carpenter Technology (NYSE:CRS), executed a significant transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, KAROL, Director at Carpenter Technology, executed a strategic derivative sale. This involved exercising stock options for 3,433 shares of CRS, resulting in a transaction value of $728,963.

Carpenter Technology shares are currently trading down by 0.0%, with a current price of $247.1 as of Thursday morning. This brings the total value of KAROL's 3,433 shares to $728,963.

Discovering Carpenter Technology: A Closer Look

Carpenter Technology Corp supplies specialty metals to a variety of end markets, including aerospace and defense, industrial machinery and consumer durables, medical, and energy, among others. The company's reportable segments include; Specialty Alloys Operations and Performance Engineered Products. It generates maximum revenue from the Specialty Alloys Operations segment. The SAO segment is comprised of the company's alloy and stainless steel manufacturing operations. This includes operations performed at mills predominantly in Reading and Latrobe, Pennsylvania, and surrounding areas as well as South Carolina and Alabama. Geographically, the company derives its maximum revenue from the United States and the rest from Europe, Asia Pacific, Mexico, Canada, and other regions.

Carpenter Technology: Delving into Financials

Negative Revenue Trend: Examining Carpenter Technology's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -5.38% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 28.32%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Carpenter Technology's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 2.23.

Debt Management: Carpenter Technology's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.37.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 33.3 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.35, Carpenter Technology's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Carpenter Technology's EV/EBITDA ratio stands at 18.95, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Carpenter Technology's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.