Encompass Capital Advisors LLC Takes $41.52 Million Position in Commercial Metals Company $CMC

Encompass Capital Advisors LLC purchased a new stake in shares of Commercial Metals Company (NYSE:CMC) during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 599,871 shares of the basic materials company’s stock, valued at approximately $41,523,000. Commercial Metals accounts for approximately 1.7% of Encompass Capital Advisors LLC’s investment portfolio, making the stock its 16th largest holding.

Other large investors also recently modified their holdings of the company. Rothschild Investment LLC increased its holdings in shares of Commercial Metals by 169.6% during the third quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company’s stock valued at $29,000 after purchasing an additional 324 shares during the period. Global Retirement Partners LLC increased its holdings in shares of Commercial Metals by 110.7% during the fourth quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company’s stock valued at $40,000 after purchasing an additional 301 shares during the period. V Square Quantitative Management LLC acquired a new position in shares of Commercial Metals during the fourth quarter valued at $54,000. Los Angeles Capital Management LLC acquired a new position in shares of Commercial Metals during the fourth quarter valued at $59,000. Finally, Aster Capital Management DIFC Ltd acquired a new position in shares of Commercial Metals during the third quarter valued at $73,000. 86.90% of the stock is owned by institutional investors and hedge funds.

Commercial Metals Price Performance

NYSE:CMC opened at $73.28 on Thursday. The business’s 50-day moving average price is $71.05 and its 200 day moving average price is $70.96. The firm has a market cap of $8.13 billion, a P/E ratio of 16.32, a PEG ratio of 0.44 and a beta of 1.50. Commercial Metals Company has a 52-week low of $47.06 and a 52-week high of $84.87. The company has a quick ratio of 1.55, a current ratio of 2.38 and a debt-to-equity ratio of 0.75.

Commercial Metals (NYSE:CMC) last released its earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.12). The firm had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.10 billion. Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.Commercial Metals’s revenue was up 21.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.26 earnings per share. As a group, sell-side analysts predict that Commercial Metals Company will post 6.58 earnings per share for the current fiscal year.

Commercial Metals Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Monday, April 6th were given a $0.20 dividend. This is a positive change from Commercial Metals’s previous quarterly dividend of $0.18. The ex-dividend date was Monday, April 6th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.1%. Commercial Metals’s dividend payout ratio is 17.82%.

Analyst Ratings Changes

A number of research analysts have recently commented on CMC shares. UBS Group raised Commercial Metals from a “neutral” rating to a “buy” rating and raised their price target for the company from $79.00 to $89.00 in a report on Wednesday, May 13th. JPMorgan Chase & Co. lowered their target price on Commercial Metals from $83.00 to $78.00 and set an “overweight” rating on the stock in a report on Tuesday, April 14th. Zacks Research lowered Commercial Metals from a “hold” rating to a “strong sell” rating in a report on Friday, June 12th. Deutsche Bank Aktiengesellschaft raised Commercial Metals to a “buy” rating in a report on Friday, May 22nd. Finally, Barclays started coverage on Commercial Metals in a report on Thursday, May 21st. They set an “equal weight” rating and a $75.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $77.10.

More Commercial Metals News

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: One Zacks update was mildly constructive, with the firm raising its Q2 2027 EPS estimate to $1.36 from $1.33, suggesting slightly better near-term profitability expectations.
• Neutral Sentiment: Most of the recent changes were small downward tweaks rather than major cuts, so the revisions do not point to a dramatic change in the company’s outlook.
• Negative Sentiment: Zacks Research lowered earnings estimates across several future periods and maintained a Strong Sell rating, a combination that may weigh on sentiment toward Commercial Metals Company (NYSE: CMC).

Commercial Metals 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.