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Carlyle Touches 52-Week High: How to Approach the Stock Now?
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Key Takeaways
CG reached a 52-week high of $64.09 before closing at $61.57, gaining 55.6% over the past year.
Q2 saw segmental revenues rise 24.7% and record Fee Related Earnings grow 18.3% year over year.
AUM growth driven by strategic deals, including Citigroup partnership and Fortitude Re agreements.
The Carlyle Group Inc. (CG - Free Report) shares touched a new 52-week high of $64.09 during yesterday's trading session. The stock closed the session a little lower at $61.57.
CG’s shares have gained 57.5% in the past year, outperforming the industry’s growth of 22.9%. The stock has also outperformed its close peers like BlackRock, Inc. (BLK - Free Report) and Lazard, Inc. (LAZ - Free Report) in the same time frame.
Price Performance
Image Source: Zacks Investment Research
What Drove CG Stock to Hit a 52-Week High?
The recent surge in price reflects investors' optimism as Carlyle posted a solid second-quarter 2025 performance, reported on Aug. 6, 2025. Its post-tax distributable earnings per share of 91 cents matched the Zacks Consensus Estimate and increased 16.7% from the year-ago quarter. Further, segmental revenues surpassed the consensus estimate by 2.8% and increased 24.7% from the same quarter last year.
The uptick was underpinned by gains in realized performance revenues, segmental revenues and fee revenues, with higher assets under management (AUM) adding further momentum.
Additionally, the Fee Related Earnings (FRE) reached a record high, rising 18.3% to $323 million, compared to the same quarter last year. In light of the strong first-half results and sustained business momentum, Carlyle raised its full-year 2025 FRE growth outlook to approximately 10% from the prior estimate of 6%.
Other Factors Fueling CG Momentum
Consistent AUM Growth: Carlyle’s fee-earning AUM and total AUM have demonstrated strong growth over the years. From 2020 to 2024, fee-earning AUM recorded a CAGR of 15.6% and total AUM a CAGR of 15.7%. Further, both increased year over year in the first half of 2025.
The company has been actively executing strategic deals to scale its investment platforms and strengthen its market position. In June 2025, the company partnered with Citigroup to expand its asset-backed finance platform, a move expected to boost AUM further. Earlier, in March 2025, Carlyle Secured Lending merged with Carlyle Secured Lending III, adding $480 million in investments and $324 million in net asset value.
The strategic advisory services agreement with Fortitude Re in April 2022 boosted its total and fee-earning AUM by about $50 billion. This was followed in May 2023 by a $28 billion reinsurance deal with Fortitude Re, which contributed an additional $24 billion in AUM. Hence, these initiatives have substantially expanded Carlyle’s platform reach and strengthened its AUM base.
Solid Revenue Growth: Carlyle’s revenue trajectory has remained strong over recent years. The company’s revenues registered a CAGR of 10.8% over the past four years ending 2024. Its growth continued in the first half of 2025. The company is focusing on scaling its investment platforms, building infrastructure and real estate credit, and foraying into new avenues, such as insurance and capital markets. These efforts are likely to support revenue growth.
Earnings Strength: Over the past three to five years, the company's earnings per share (EPS) have witnessed an increase of 11.89%. Further, it is expected to display an upswing in the near term with a projected EPS growth rate of 17.49%. Also, CG surpassed estimates in three of the trailing four quarters and missed once, with an average earnings surprise of 4.68%.
Sustainable Capital Distribution Activities: The company continues to reward shareholders through consistent buybacks and dividends. In February 2024, the board of directors authorized a share repurchase program with no expiration date that allows the repurchase of up to $1.4 billion in shares. As of June 30, 2025, $0.6 billion worth of shares were available under the share repurchase program.
Apart from the share repurchase program, the company pays regular dividends. In April 2025, CG raised its quarterly dividend by 14.3% to 40 cents per share. In the last five years, the company increased its dividend twice while having a dividend payout rate of 37%. The company has a current dividend yield of 2.23%. In comparison, the dividend yields of BlackRock and Lazard are 1.86% and 3.87%, respectively.
Management expects to actively keep repurchasing its shares and strengthen investors’ confidence in the stock. Such capital-distribution activities seem sustainable, given the company’s consistent earnings strength.
Impressive ROE:The company’s trailing 12-month return on equity (ROE) stands at 23.60%, well above the industry average of 12.46%. This underscores the company’s strong ability to utilize shareholders’ funds effectively to drive profitability. The ROE of BlackRock and Lazard are 15.83% and 34.33%, respectively.
Near-Term Concerns for CG
Elevated Expense: Over the past few years, the company has faced a consistent rise in expenses, which registered a CAGR of 9.5% from 2020 to 2024, primarily driven by higher compensation-related costs. The expenses continued to increase year over year in the first half of 2025, reflecting ongoing inflationary pressures. Further, additional investments in technology and staffing are expected to keep the expense base elevated, limiting bottom-line growth in the near term.
Liquidity Constraints: Carlyle’s liquidity position may face pressure during economic stress. As of June 30, 2025, the company had $5.3 billion in total debt. It held $1.3 billion in cash and cash equivalents, along with full access to a $1-billion revolving credit line. Despite these, limited liquidity could hinder the company’s ability to meet near-term debt obligations, especially if economic conditions deteriorate.
CG's Estimates and Valuation Analysis
The consensus mark for CG’s 2025 and 2026 sales suggests a year-over-year increase of 13.2% and 16.7%, respectively.
The consensus estimate for earnings indicates an 11.5% and 16.5% rise for 2025 and 2026, respectively. Over the past week, the Zacks Consensus Estimate for earnings for 2025 and 2026 has remained unchanged.
Estimates Revision Trend
Image Source: Zacks Investment Research
In terms of valuation, CG stock appears inexpensive relative to the industry. The company is currently trading at a 12-month trailing price-to-earnings P/E ratio of 13.74X, lower than the industry’s 17.41X. Meanwhile, BlackRock holds a P/E ratio of 22.27X, while Lazard’s P/E ratio stands at 15.75X.
Price-to-Earnings F12 M
Image Source: Zacks Investment Research
How Should You Play CG Stock?
Though elevated expenses and high debt levels remain a near-term concern, Carlyle’s consistent AUM and revenue growth position it for long-term growth. Sustainable capital distribution activities will keep enhancing shareholders' value.
The company’s expansion in key areas such as real estate, credit, and wealth, along with its disciplined approach, diversification, and operating leverage, positions it well to capitalize on improving markets and evolving client needs. Hence, long-term investors with existing holdings may find value in maintaining their stake, given its solid fundamentals.
Image: Bigstock
Carlyle Touches 52-Week High: How to Approach the Stock Now?
Key Takeaways
The Carlyle Group Inc. (CG - Free Report) shares touched a new 52-week high of $64.09 during yesterday's trading session. The stock closed the session a little lower at $61.57.
CG’s shares have gained 57.5% in the past year, outperforming the industry’s growth of 22.9%. The stock has also outperformed its close peers like BlackRock, Inc. (BLK - Free Report) and Lazard, Inc. (LAZ - Free Report) in the same time frame.
Price Performance
Image Source: Zacks Investment Research
What Drove CG Stock to Hit a 52-Week High?
The recent surge in price reflects investors' optimism as Carlyle posted a solid second-quarter 2025 performance, reported on Aug. 6, 2025. Its post-tax distributable earnings per share of 91 cents matched the Zacks Consensus Estimate and increased 16.7% from the year-ago quarter. Further, segmental revenues surpassed the consensus estimate by 2.8% and increased 24.7% from the same quarter last year.
The uptick was underpinned by gains in realized performance revenues, segmental revenues and fee revenues, with higher assets under management (AUM) adding further momentum.
Additionally, the Fee Related Earnings (FRE) reached a record high, rising 18.3% to $323 million, compared to the same quarter last year. In light of the strong first-half results and sustained business momentum, Carlyle raised its full-year 2025 FRE growth outlook to approximately 10% from the prior estimate of 6%.
Other Factors Fueling CG Momentum
Consistent AUM Growth: Carlyle’s fee-earning AUM and total AUM have demonstrated strong growth over the years. From 2020 to 2024, fee-earning AUM recorded a CAGR of 15.6% and total AUM a CAGR of 15.7%. Further, both increased year over year in the first half of 2025.
The company has been actively executing strategic deals to scale its investment platforms and strengthen its market position. In June 2025, the company partnered with Citigroup to expand its asset-backed finance platform, a move expected to boost AUM further. Earlier, in March 2025, Carlyle Secured Lending merged with Carlyle Secured Lending III, adding $480 million in investments and $324 million in net asset value.
The strategic advisory services agreement with Fortitude Re in April 2022 boosted its total and fee-earning AUM by about $50 billion. This was followed in May 2023 by a $28 billion reinsurance deal with Fortitude Re, which contributed an additional $24 billion in AUM. Hence, these initiatives have substantially expanded Carlyle’s platform reach and strengthened its AUM base.
Solid Revenue Growth: Carlyle’s revenue trajectory has remained strong over recent years. The company’s revenues registered a CAGR of 10.8% over the past four years ending 2024. Its growth continued in the first half of 2025. The company is focusing on scaling its investment platforms, building infrastructure and real estate credit, and foraying into new avenues, such as insurance and capital markets. These efforts are likely to support revenue growth.
Earnings Strength: Over the past three to five years, the company's earnings per share (EPS) have witnessed an increase of 11.89%. Further, it is expected to display an upswing in the near term with a projected EPS growth rate of 17.49%. Also, CG surpassed estimates in three of the trailing four quarters and missed once, with an average earnings surprise of 4.68%.
Sustainable Capital Distribution Activities: The company continues to reward shareholders through consistent buybacks and dividends. In February 2024, the board of directors authorized a share repurchase program with no expiration date that allows the repurchase of up to $1.4 billion in shares. As of June 30, 2025, $0.6 billion worth of shares were available under the share repurchase program.
Apart from the share repurchase program, the company pays regular dividends. In April 2025, CG raised its quarterly dividend by 14.3% to 40 cents per share. In the last five years, the company increased its dividend twice while having a dividend payout rate of 37%. The company has a current dividend yield of 2.23%. In comparison, the dividend yields of BlackRock and Lazard are 1.86% and 3.87%, respectively.
Management expects to actively keep repurchasing its shares and strengthen investors’ confidence in the stock. Such capital-distribution activities seem sustainable, given the company’s consistent earnings strength.
Impressive ROE:The company’s trailing 12-month return on equity (ROE) stands at 23.60%, well above the industry average of 12.46%. This underscores the company’s strong ability to utilize shareholders’ funds effectively to drive profitability. The ROE of BlackRock and Lazard are 15.83% and 34.33%, respectively.
Near-Term Concerns for CG
Elevated Expense: Over the past few years, the company has faced a consistent rise in expenses, which registered a CAGR of 9.5% from 2020 to 2024, primarily driven by higher compensation-related costs. The expenses continued to increase year over year in the first half of 2025, reflecting ongoing inflationary pressures. Further, additional investments in technology and staffing are expected to keep the expense base elevated, limiting bottom-line growth in the near term.
Liquidity Constraints: Carlyle’s liquidity position may face pressure during economic stress. As of June 30, 2025, the company had $5.3 billion in total debt. It held $1.3 billion in cash and cash equivalents, along with full access to a $1-billion revolving credit line. Despite these, limited liquidity could hinder the company’s ability to meet near-term debt obligations, especially if economic conditions deteriorate.
CG's Estimates and Valuation Analysis
The consensus mark for CG’s 2025 and 2026 sales suggests a year-over-year increase of 13.2% and 16.7%, respectively.
The consensus estimate for earnings indicates an 11.5% and 16.5% rise for 2025 and 2026, respectively. Over the past week, the Zacks Consensus Estimate for earnings for 2025 and 2026 has remained unchanged.
Estimates Revision Trend
Image Source: Zacks Investment Research
In terms of valuation, CG stock appears inexpensive relative to the industry. The company is currently trading at a 12-month trailing price-to-earnings P/E ratio of 13.74X, lower than the industry’s 17.41X. Meanwhile, BlackRock holds a P/E ratio of 22.27X, while Lazard’s P/E ratio stands at 15.75X.
Price-to-Earnings F12 M
Image Source: Zacks Investment Research
How Should You Play CG Stock?
Though elevated expenses and high debt levels remain a near-term concern, Carlyle’s consistent AUM and revenue growth position it for long-term growth. Sustainable capital distribution activities will keep enhancing shareholders' value.
The company’s expansion in key areas such as real estate, credit, and wealth, along with its disciplined approach, diversification, and operating leverage, positions it well to capitalize on improving markets and evolving client needs. Hence, long-term investors with existing holdings may find value in maintaining their stake, given its solid fundamentals.
At present, CG carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.