Palisade Capital Management LP Invests $11.20 Million in Commercial Metals Company $CMC

Palisade Capital Management LP bought a new stake in Commercial Metals Company (NYSE:CMC) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm bought 178,434 shares of the basic materials company’s stock, valued at approximately $11,197,000. Palisade Capital Management LP owned approximately 0.16% of Commercial Metals as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Legal & General Group Plc bought a new stake in shares of Commercial Metals during the 2nd quarter worth $10,245,000. The Manufacturers Life Insurance Company bought a new position in Commercial Metals in the second quarter valued at about $6,571,000. Cibc World Market Inc. bought a new position in Commercial Metals in the second quarter valued at about $932,000. Sanctuary Advisors LLC acquired a new position in Commercial Metals during the second quarter worth about $209,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in Commercial Metals during the second quarter worth about $239,000. Institutional investors own 86.90% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. The Goldman Sachs Group restated a “buy” rating and issued a $85.00 price target on shares of Commercial Metals in a research note on Thursday, August 6th. Morgan Stanley upped their price objective on shares of Commercial Metals from $83.00 to $88.00 and gave the stock an “overweight” rating in a research report on Monday, June 22nd. UBS Group upgraded shares of Commercial Metals from a “neutral” rating to a “buy” rating and raised their target price for the company from $79.00 to $89.00 in a research report on Wednesday, May 13th. Bank of America cut their target price on shares of Commercial Metals from $84.00 to $78.00 and set a “buy” rating on the stock in a research report on Thursday, July 9th. Finally, BMO Capital Markets upped their price target on shares of Commercial Metals from $77.00 to $80.00 and gave the stock a “market perform” rating in a report on Thursday, August 6th. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $81.18.

Commercial Metals Stock Performance

NYSE:CMC opened at $66.94 on Wednesday. The stock has a market cap of $7.41 billion, a P/E ratio of 12.61, a price-to-earnings-growth ratio of 0.37 and a beta of 1.52. The company has a current ratio of 2.33, a quick ratio of 1.54 and a debt-to-equity ratio of 0.73. The stock’s 50-day moving average is $68.29 and its 200-day moving average is $69.60. Commercial Metals Company has a 1-year low of $53.08 and a 1-year high of $84.87.

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

Commercial Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.80 annualized dividend and a dividend yield of 1.2%. Commercial Metals’s dividend payout ratio (DPR) is presently 15.07%.

Commercial Metals announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the basic materials company to buy up to 7.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt purchased 8,230 shares of the business’s stock in a transaction dated Friday, July 10th. The shares were bought at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the completion of the acquisition, the chief executive officer owned 181,522 shares in the company, valued at approximately $11,127,298.60. This trade represents a 4.75% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John R. Mcpherson purchased 1,390 shares of the business’s stock in a transaction dated Thursday, August 13th. The shares were acquired at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the acquisition, the director owned 21,927 shares of the company’s stock, valued at $1,576,989.84. This trade represents a 6.77% increase in their position. The SEC filing for this purchase provides additional information. 0.62% of the stock is currently owned by company insiders.

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.