Market News

Why Did CR Stock Close in Red on Thursday?

The board of industrial products manufacturer Crane Co. (NYSE: CR) has approved a plan to split the company into two independent publicly-traded companies. After the announcement was made on Thursday, CR stock lost 1.6% to close at $108.28.

Crane will be split into Crane Co. and Crane NXT, with an aim to boost growth, optimize capital allocation and investment, and increase shareholder value.

Max Mitchell, the CEO and President of Crane, said, “Having achieved the scale to operate as two market-leading, separate companies, we believe this transaction will unlock substantial value for our shareholders, as each company attracts an investor base tailored to its respective financial and growth profile.”

Following the completion of the separation, which is expected in the next 12 months, Crane’s shareholders will hold a 100% stake in both companies.

Crane Co.

Consisting of Aerospace & Electronics and Process Flow Technologies businesses, Crane Co. will offer highly-engineered products and solutions. These businesses are projected to generate sales of around $1.9 billion this year.

Once the split is complete, Mitchell will continue to serve as the CEO and President of Crane Co. and Rich Maue as CFO. Additionally, the company will continue to use the ticker CR to trade on the New York Stock Exchange (NYSE).

Crane NXT

Crane NXT will include the Payment and Merchandising Technologies (PMT) business that is likely to generate nearly $1.4 billion in sales in 2022. The PMT business’ executives will take up senior roles in Crane NXT.

Further, shares of this industrial technology company will trade on the NYSE under the ticker CXT.

About Crane

Connecticut-based Crane provides industrial products and solutions to customers in the aerospace, defense, chemical and petrochemical, water and wastewater, payment automation, and banknote security and production markets. It has approximately 11,000 people working across the world.

Stock Rating

Based on one Buy and one Hold, Crane has a Moderate Buy consensus rating. CR’s average price target of $124 implies 14.5% upside potential from current levels. Shares have gained 12.5% over the past year.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 75% Bullish on Crane, compared to the sector average of 68%.


The split will allow the two companies to focus on their operations, pursue growth opportunities, better meet customer demands, allocate capital according to their business strategy, and consider M&A opportunities.

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