Commercial Metals (NYSE:CMC) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Commercial Metals (NYSE:CMC) had its price target increased by research analysts at BMO Capital Markets from $77.00 to $80.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a “market perform” rating on the basic materials company’s stock. BMO Capital Markets’ target price would suggest a potential upside of 6.42% from the stock’s current price.

A number of other research firms also recently issued reports on CMC. Wells Fargo & Company raised their price target on Commercial Metals from $77.00 to $80.00 and gave the stock an “equal weight” rating in a research note on Friday, June 26th. Deutsche Bank Aktiengesellschaft raised Commercial Metals to a “buy” rating in a research report on Friday, May 22nd. Weiss Ratings upgraded shares of Commercial Metals from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. Citigroup dropped their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. Finally, Bank of America cut their target price on shares of Commercial Metals from $84.00 to $78.00 and set a “buy” rating for the company in a research report on Thursday, July 9th. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $81.18.

Commercial Metals Stock Performance

Shares of NYSE CMC opened at $75.17 on Thursday. The firm’s 50-day moving average price is $69.80 and its 200-day moving average price is $70.32. Commercial Metals has a 52-week low of $52.74 and a 52-week high of $84.87. The company has a market cap of $8.32 billion, a PE ratio of 14.16, a PEG ratio of 0.42 and a beta of 1.52. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73.

Commercial Metals (NYSE:CMC) last released its quarterly earnings data on Thursday, June 25th. The basic materials company reported $1.73 earnings per share for the quarter, beating the consensus estimate of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The firm had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.40 billion. During the same period in the previous year, the company earned $0.74 earnings per share. The firm’s quarterly revenue was up 22.9% on a year-over-year basis. As a group, analysts anticipate that Commercial Metals will post 6.64 EPS for the current year.

Commercial Metals announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, August 5th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the basic materials company to reacquire up to 7.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Peter R. Matt acquired 8,230 shares of the business’s stock in a transaction on Friday, July 10th. The stock was acquired at an average cost of $61.30 per share, with a total value of $504,499.00. Following the acquisition, the chief executive officer directly owned 181,522 shares in the company, valued at $11,127,298.60. This represents a 4.75% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.62% of the stock is owned by insiders.

Institutional Trading of Commercial Metals

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. USA Financial Formulas boosted 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 bought a new position in Commercial Metals during the second quarter valued at approximately $34,000. V Square Quantitative Management LLC purchased a new position in Commercial Metals during the 4th quarter valued at approximately $54,000. Caitong International Asset Management Co. Ltd increased its stake in Commercial Metals by 617.2% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company’s stock worth $58,000 after acquiring an additional 716 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of Commercial Metals during the 4th quarter worth approximately $59,000. 86.90% of the stock is currently owned by institutional investors.

Key Commercial Metals News

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

• Positive Sentiment: Share buyback supports the stock: Commercial Metals authorized a program to repurchase up to $600 million of its outstanding shares, representing as much as 7.5% of the company’s stock. The authorization signals management believes the shares are undervalued and could support earnings per share by reducing the share count. Commercial Metals to Repurchase $600 Million in Outstanding Shares
• Positive Sentiment: Zacks raises longer-term EPS estimates: Zacks Research increased its forecasts across several periods, including Q1 2027 EPS to $1.79 from $1.77, FY2027 EPS to $7.13 from $7.08, and FY2028 EPS to $7.32 from $7.27. Estimates for Q4 2027, Q1-Q3 2028 were also raised by $0.01 per share, suggesting slightly improved expectations for future profitability.
• Neutral Sentiment: Analyst target rises, but rating remains cautious: BMO Capital Markets lifted its price target for CMC from $77 to $80 while maintaining a “Market Perform” rating. The higher target offers moderate potential upside, but the unchanged rating indicates BMO does not expect substantial outperformance relative to the broader market. BMO Capital Markets Raises Commercial Metals Price Target

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.