Carrier Global Shares Face Sustained Downward Pressure

Carrier Global Corp’s stock continues to experience significant selling pressure as company executives prepare to address investors at today’s Baird Industrial Conference. The equity has declined more than 22% since July, confirming a clear downward trajectory through technical analysis.

Management Under Scrutiny

All attention turns to CEO David Gitlin and CFO Patrick Goris as they outline Carrier’s strategic direction for climate and energy solutions at the Baird conference. Whether their presentation can reverse the current bearish sentiment remains uncertain amid challenging market conditions.

The company’s technical picture reveals substantial weakness. Yesterday’s trading saw shares break below the 20-day moving average at €49.24, extending a decline that began on July 29. The broader timeframe illustrates even more concerning trends, with the 50-day moving average standing at $59.50 while the 200-day line shows $66.95 – a significant gap highlighting persistent selling pressure.

Quarterly Results Present Mixed Picture

Carrier’s most recent earnings report from October 28 revealed conflicting signals. While the company exceeded profit expectations, it fell short on revenue performance.

• Q3 EPS: $0.67 per share (beat estimates of $0.57)
• Q3 Revenue: $5.58 billion (missed forecasts, down 6.8% year-over-year)
• Annual Guidance: Revenue outlook reduced by $1 billion
• Buyback Program: $5 billion authorization approved

Management has attempted to instill confidence through a substantial $5 billion share repurchase program, yet simultaneously downgraded full-year revenue projections. The company faces noticeable headwinds from weakness in North American residential sales and European heating markets.

Should investors sell immediately? Or is it worth buying Carrier Global Corp?

Analyst Sentiment and Institutional Activity

Market experts maintain a “Moderate Buy” rating on average with a price target of $74.18. However, recent adjustments tell a more cautious story. Deutsche Bank trimmed its target from $70 to $64, while Royal Bank of Canada reduced its projection from $87 to $75.

Despite the negative momentum, some institutional investors are viewing the weakness as a buying opportunity. Allworth Financial and Acadian Asset Management have both increased their positions during the downturn.

A potential bright spot emerged recently as the U.S. Department of Energy designated Carrier as a training provider for heat pump installation – a positive development in otherwise difficult market conditions.

The critical question facing investors is whether Carrier’s long-term positioning in HVAC and climate control technologies will prove sufficient to weather the current downturn.