Commercial Metals Company (NYSE:CMC) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Commercial Metals Company (NYSE:CMC) has been given a consensus rating of “Moderate Buy” by the twelve brokerages that are currently covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $72.80.

A number of equities research analysts recently weighed in on CMC shares. Wells Fargo & Company boosted their price target on shares of Commercial Metals from $79.00 to $80.00 and gave the stock an “overweight” rating in a research note on Monday, March 2nd. JPMorgan Chase & Co. raised shares of Commercial Metals from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $64.00 to $78.00 in a report on Friday, December 5th. Wall Street Zen upgraded shares of Commercial Metals from a “buy” rating to a “strong-buy” rating in a research report on Friday, November 28th. The Goldman Sachs Group reissued a “buy” rating and issued a $84.00 price target on shares of Commercial Metals in a research note on Tuesday, December 30th. Finally, Citigroup raised their price target on Commercial Metals from $65.00 to $85.00 and gave the stock a “buy” rating in a research report on Monday, January 12th.

Commercial Metals Price Performance

Shares of CMC stock opened at $61.10 on Friday. The firm has a market cap of $6.78 billion, a price-to-earnings ratio of 15.75, a PEG ratio of 0.33 and a beta of 1.47. Commercial Metals has a 12 month low of $37.92 and a 12 month high of $84.87. The company has a quick ratio of 3.70, a current ratio of 4.47 and a debt-to-equity ratio of 0.77. The stock has a 50-day moving average price of $75.07 and a 200 day moving average price of $66.27.

Commercial Metals (NYSE:CMC) last released its earnings results on Thursday, January 8th. The basic materials company reported $1.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.55 by $0.29. The company had revenue of $2.12 billion for the quarter, compared to the consensus estimate of $2.06 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The company’s revenue was up 11.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.78 EPS. Research analysts expect that Commercial Metals will post 3.09 EPS for the current year.

Commercial Metals Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, February 2nd. Shareholders of record on Monday, January 19th were paid a $0.18 dividend. The ex-dividend date of this dividend was Friday, January 16th. This represents a $0.72 annualized dividend and a yield of 1.2%. Commercial Metals’s dividend payout ratio is presently 18.56%.

Insider Transactions at Commercial Metals

In other news, insider Jennifer J. Durbin sold 25,050 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total value of $2,003,248.50. Following the completion of the sale, the insider directly owned 52,880 shares of the company’s stock, valued at $4,228,813.60. This represents a 32.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Dennis V. Arriola purchased 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The stock was purchased at an average price of $74.69 per share, for a total transaction of $149,380.00. Following the completion of the transaction, the director directly owned 9,238 shares in the company, valued at $689,986.22. This trade represents a 27.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.62% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Commercial Metals

Several large investors have recently bought and sold shares of CMC. Root Financial Partners LLC acquired a new stake in Commercial Metals in the third quarter worth $25,000. Rothschild Investment LLC grew its holdings in shares of Commercial Metals by 169.6% in the 3rd quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company’s stock valued at $29,000 after buying an additional 324 shares during the period. SBI Securities Co. Ltd. increased its position in shares of Commercial Metals by 282.3% in the 2nd quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company’s stock valued at $34,000 after buying an additional 511 shares in the last quarter. Spire Wealth Management increased its position in shares of Commercial Metals by 42.4% in the 3rd quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock valued at $35,000 after buying an additional 183 shares in the last quarter. Finally, Global Retirement Partners LLC raised its stake in Commercial Metals by 110.7% during the 4th quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company’s stock worth $40,000 after buying an additional 301 shares during the period. Institutional investors own 86.90% of the company’s stock.

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.