Commercial Metals Company (NYSE:CMC) Given Average Recommendation of “Moderate Buy” by Analysts

Commercial Metals Company (NYSE:CMC) has received a consensus recommendation of “Moderate Buy” from the fifteen research firms that are currently covering the firm, Marketbeat.com reports. Five research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $81.1818.

A number of analysts recently issued reports on the company. Wells Fargo & Company boosted their price target on Commercial Metals from $77.00 to $80.00 and gave the company an “equal weight” rating in a report on Friday, June 26th. Morgan Stanley raised their price objective on Commercial Metals from $83.00 to $88.00 and gave the stock an “overweight” rating in a report on Monday, June 22nd. BMO Capital Markets lifted their target price on Commercial Metals from $77.00 to $80.00 and gave the company a “market perform” rating in a research report on Thursday, August 6th. BNP Paribas Exane upgraded Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 target price for the company in a report on Wednesday, July 8th. Finally, Bank of America dropped their price target on Commercial Metals from $84.00 to $78.00 and set a “buy” rating on the stock in a research report on Thursday, July 9th.

Commercial Metals Trading Down 2.8%

Shares of CMC opened at $73.05 on Tuesday. The firm has a market capitalization of $8.08 billion, a price-to-earnings ratio of 13.76, a PEG ratio of 0.43 and a beta of 1.52. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54. Commercial Metals has a 1-year low of $52.74 and a 1-year high of $84.87. The company has a 50-day moving average of $69.75 and a 200 day moving average of $70.28.

Commercial Metals (NYSE:CMC) last issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, topping analysts’ consensus estimates of $1.70 by $0.03. The business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.40 billion. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The company’s revenue for the quarter was up 22.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.74 EPS. On average, research analysts expect that Commercial Metals will post 6.64 EPS for the current year.

Commercial Metals announced that its board has authorized a share buyback program on Wednesday, August 5th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the basic materials company to repurchase up to 7.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Commercial Metals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, July 6th were paid a $0.20 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.80 dividend on an annualized basis and a yield of 1.1%. Commercial Metals’s dividend payout ratio is 15.07%.

Insider Transactions at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt bought 8,230 shares of the business’s stock in a transaction on Friday, July 10th. The shares were acquired at an average price of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer owned 181,522 shares of the company’s stock, valued at approximately $11,127,298.60. This trade represents a 4.75% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.62% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Commercial Metals

Hedge funds and other institutional investors have recently modified their holdings of the business. USA Financial Formulas lifted its holdings in shares of Commercial Metals by 67.6% during the 1st quarter. USA Financial Formulas now owns 496 shares of the basic materials company’s stock valued at $30,000 after purchasing an additional 200 shares during the last quarter. Global Retirement Partners LLC purchased a new position in Commercial Metals during the 2nd quarter worth $34,000. V Square Quantitative Management LLC purchased a new position in Commercial Metals during the 4th quarter worth $54,000. Caitong International Asset Management Co. Ltd increased its position in Commercial Metals by 617.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company’s stock valued at $58,000 after buying an additional 716 shares in the last quarter. Finally, Los Angeles Capital Management LLC acquired a new position in Commercial Metals during the 4th quarter valued at about $59,000. 86.90% of the stock is currently owned by institutional investors.

Commercial Metals Company Profile

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.