Commercial Metals (NYSE:CMC) Stock Rating Lowered by StockNews.com

StockNews.com cut shares of Commercial Metals (NYSE:CMC) from a buy rating to a hold rating in a research note issued to investors on Monday morning.

Separately, BMO Capital Markets upped their price target on shares of Commercial Metals from $52.00 to $60.00 and gave the stock a market perform rating in a research note on Friday, March 22nd.

Commercial Metals Stock Performance

Shares of Commercial Metals stock opened at $53.30 on Monday. The stock has a market cap of $6.17 billion, a price-to-earnings ratio of 9.26 and a beta of 1.27. The firm’s 50-day moving average is $56.25 and its 200 day moving average is $52.75. Commercial Metals has a 1 year low of $39.85 and a 1 year high of $59.81. The company has a debt-to-equity ratio of 0.27, a current ratio of 4.19 and a quick ratio of 2.69.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings results on Thursday, March 21st. The basic materials company reported $0.88 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.93 by ($0.05). The firm had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.80 billion. Commercial Metals had a return on equity of 17.72% and a net margin of 8.09%. The business’s revenue for the quarter was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.44 EPS. Sell-side analysts anticipate that Commercial Metals will post 5.34 EPS for the current fiscal year.

Commercial Metals Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 10th. Stockholders of record on Monday, April 1st were given a dividend of $0.18 per share. The ex-dividend date was Thursday, March 28th. This represents a $0.72 annualized dividend and a dividend yield of 1.35%. This is a positive change from Commercial Metals’s previous quarterly dividend of $0.16. Commercial Metals’s dividend payout ratio is presently 12.50%.

Insider Activity

In other news, Chairman Barbara Smith sold 35,704 shares of the company’s stock in a transaction dated Wednesday, March 27th. The shares were sold at an average price of $57.88, for a total transaction of $2,066,547.52. Following the completion of the sale, the chairman now owns 36,196 shares of the company’s stock, valued at approximately $2,095,024.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Commercial Metals

Several hedge funds and other institutional investors have recently made changes to their positions in the business. SummerHaven Investment Management LLC increased its position in shares of Commercial Metals by 1.8% during the 4th quarter. SummerHaven Investment Management LLC now owns 13,154 shares of the basic materials company’s stock valued at $658,000 after purchasing an additional 228 shares during the last quarter. Janney Montgomery Scott LLC increased its holdings in Commercial Metals by 1.1% in the 3rd quarter. Janney Montgomery Scott LLC now owns 23,471 shares of the basic materials company’s stock worth $1,160,000 after acquiring an additional 247 shares in the last quarter. Congress Asset Management Co. MA increased its holdings in Commercial Metals by 0.4% in the 4th quarter. Congress Asset Management Co. MA now owns 67,943 shares of the basic materials company’s stock worth $3,400,000 after acquiring an additional 251 shares in the last quarter. Diversified Trust Co increased its holdings in Commercial Metals by 1.2% in the 3rd quarter. Diversified Trust Co now owns 23,810 shares of the basic materials company’s stock worth $1,176,000 after acquiring an additional 292 shares in the last quarter. Finally, Oliver Luxxe Assets LLC increased its holdings in Commercial Metals by 2.2% in the 3rd quarter. Oliver Luxxe Assets LLC now owns 14,211 shares of the basic materials company’s stock worth $702,000 after acquiring an additional 304 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.