Deutsche Bank Aktiengesellschaft recently lowered the price target of The Carlyle Group (NASDAQ:CG) from $41.00 to $39.00 in a research note issued on Friday, as reported by The Fly. Despite this decrease, Deutsche Bank Aktiengesellschaft’s target price still indicates a potential upside of 51.40% from the stock’s previous close.
The Carlyle Group last released its quarterly earnings results on May 4th, revealing a disappointing $0.63 EPS for the quarter, missing the consensus estimate of $0.65 by ($0.02). Despite this setback, The Carlyle Group maintains a strong return on equity of 27.50% and a net margin of 27.60%. However, revenue was down 3.2% compared to the same quarter last year coming in at only $754.20 million for the quarter as compared to analysts’ expectations of $805.50 million.
As an alternative asset management business, The Carlyle Group operates multiple segments such as Corporate Private Equity, Real Assets, Global Credit and Investment Solutions that focus on various corporate investments of different sizes with varying growth potentials. Much like other private equity companies, they commonly engage in buyouts and growth capital funds.
Despite its recent earnings report shortcomings and downwardly revised price target forecasted by Deutsche Bank Aktiengesellschaft, The Carlyle Group continues to persist as a global market leader in multi-product alternative asset management with plans to post 3.23 EPS for the current year according to analyst predictions so far. As always caution is advised when considering any investment decision but it seems clear that there are reasons both for and against investing in The Carlyle Group at this time depending on your perspective as an investor based on these mixed signals from reports thus far.
Financial Analysts Give Mixed Ratings for The Carlyle Group, with COO Insider Selling and Institutional Investors Making Changes in Holding Pattern
Financial analysts have issued mixed ratings for The Carlyle Group, with two analysts rating the stock as “sell,” five as “hold,” and ten as “buy.” Bloomberg reports that the overall consensus is a “hold” rating, with an average price target of $38.50. This comes after BMO Capital Markets reduced its target price from $44 to $37 and JMP Securities cut its target price from $54 to $52. Despite these mixed signals, shares of The Carlyle Group traded up slightly on Friday at $25.76 per share.
The Carlyle Group engages in multi-product global alternative asset management, operating through four segments: Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions. Its Corporate Private Equity segment focuses on buyout and growth capital funds that invest in a variety of corporate opportunities.
The company has faced some recent insider selling, with COO Christopher Finn selling over 20,000 shares at an average price of $36.10 each in February. However, executive insiders still hold a significant stake in the company; following the sale, Finn still owns almost one million shares worth over $35 million.
Institutional investors and hedge funds have also modified their holdings of The Carlyle Group recently. CVA Family Office LLC increased its position by over 200%, while Clear Street Markets LLC boosted its stake by 233%. Other firms like Freedom Wealth Alliance LLC and Column Capital Advisors LLC made smaller acquisitions.
Despite concerns from some analysts and insider selling activity, The Carlyle Group continues to operate successfully in the alternative asset management space with a market cap of approximately $9 billion. Investors will be watching closely for any further developments or news surrounding this prominent financial firm.
