Smith Group Asset Management LLC Purchases 11,405 Shares of Commercial Metals Company $CMC

Smith Group Asset Management LLC purchased a new stake in shares of Commercial Metals Company (NYSE:CMC) during the 3rd quarter, HoldingsChannel.com reports. The institutional investor purchased 11,405 shares of the basic materials company’s stock, valued at approximately $708,000.

Other hedge funds have also modified their holdings of the company. USA Financial Formulas raised its holdings in shares of Commercial Metals by 67.6% during the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company’s stock worth $30,000 after acquiring an additional 200 shares in the last quarter. Reyes Financial Architecture Inc. acquired a new stake in Commercial Metals during the third quarter valued at $31,000. Global Retirement Partners LLC acquired a new stake in Commercial Metals during the second quarter valued at $34,000. Root Financial Partners LLC purchased a new position in Commercial Metals in the third quarter valued at about $41,000. Finally, Integrated Wealth Concepts LLC acquired a new position in Commercial Metals in the 2nd quarter worth about $63,000. 86.90% of the stock is owned by institutional investors and hedge funds.

Commercial Metals Stock Up 0.8%

Commercial Metals stock opened at $64.10 on Thursday. The company has a current ratio of 2.34, a quick ratio of 1.66 and a debt-to-equity ratio of 0.71. Commercial Metals Company has a 1-year low of $55.97 and a 1-year high of $84.87. The firm’s fifty day simple moving average is $65.50 and its 200-day simple moving average is $69.29. The company has a market capitalization of $7.05 billion, a P/E ratio of 10.92, a P/E/G ratio of 3.66 and a beta of 1.53.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The firm had revenue of $2.66 billion during the quarter, compared to analysts’ expectations of $2.56 billion. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. Commercial Metals’s revenue for the quarter was up 25.7% on a year-over-year basis. During the same period in the prior year, the company posted $1.37 earnings per share. Sell-side analysts forecast that Commercial Metals Company will post 7.07 earnings per share for the current fiscal year.

Commercial Metals declared that its Board of Directors has approved a share buyback plan on Wednesday, August 5th that authorizes the company to buy back $600 million in outstanding shares. This buyback authorization authorizes the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Share buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Commercial Metals Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 11th. Shareholders of record on Wednesday, October 28th will be issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, October 28th. Commercial Metals’s dividend payout ratio (DPR) is 13.63%.

Insiders Place Their Bets

In related news, Director John McPherson purchased 1,390 shares of Commercial Metals stock in a transaction on Thursday, August 13th. The stock was bought at an average price of $71.92 per share, with a total value of $99,968.80. Following the completion of the transaction, the director directly owned 21,927 shares of the company’s stock, valued at approximately $1,576,989.84. This represents a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.62% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CMC. Weiss Ratings raised Commercial Metals from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, October 16th. The Goldman Sachs Group reiterated a “buy” rating and set a $85.00 price target on shares of Commercial Metals in a report on Thursday, August 6th. Citigroup lowered their price target on Commercial Metals from $85.00 to $75.00 and set a “buy” rating for the company in a research note on Tuesday, July 7th. Wells Fargo & Company restated an “underperform” rating and issued a $70.00 price objective on shares of Commercial Metals in a report on Friday, October 16th. Finally, Morgan Stanley dropped their price objective on Commercial Metals from $88.00 to $84.00 and set an “overweight” rating on the stock in a report on Monday, October 19th. Ten equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Commercial Metals currently has a consensus rating of “Moderate Buy” and a consensus price target of $78.73.

About Commercial Metals

Commercial Metals Company (NYSE:CMC) is a steel and metals manufacturer, recycler and fabricator headquartered in Irving, Texas. The company produces and sells steel products used in construction, infrastructure and industrial applications, including reinforcing bar, wire rod, merchant bar, structural steel and related products.

CMC operates an integrated recycling and manufacturing model. Its recycling facilities collect and process ferrous and nonferrous scrap metal, which is used as raw material in the company’s electric-arc-furnace steel mills.