Crane Shares Soar 2.69% On Acquisition, Earnings

Crane(CR) shares surged to a record high today, with an intraday gain of 2.69%.

The strategy of buying CR shares after they reach a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.5% annualized return and a 37.5% total return. However, the beta of 1.2 indicates that the strategy carried slightly more risk than the market, suggesting that while the returns were decent, they came with a higher level of volatility.

Crane Company's strategic acquisition of Precision Sensors & Instrumentation from Baker Hughes is a significant factor driving the stock price. This $1 billion deal is expected to enhance Crane's sensor technology capabilities across sectors like aerospace, nuclear, and process industries. The acquisition is projected to boost Crane’s sales and EBITDA, strengthen its Aerospace & Electronics segment, double the size of its Nuclear business, and expand its technological portfolio. This move aligns with Crane’s growth strategy and is anticipated to deliver a 10% return on invested capital by the fifth year, contributing to the positive market response.

Several analysts have maintained Buy ratings on Crane (CR) and raised its price targets. UBS raised the price target from $190 to $215, indicating positive outlooks based on Crane’s strong financial performance and strategic moves.

Crane Co. reported strong first-quarter 2025 earnings, with earnings per share (EPS) surpassing expectations, contributing to the stock reaching an all-time high. These factors collectively indicate a positive market sentiment towards Crane, driven by strategic acquisitions, strong financial performance, and favorable analyst ratings.