Commercial Metals (NYSE:CMC) Stock Rating Upgraded by The Goldman Sachs Group

Commercial Metals (NYSE:CMC) was upgraded by equities researchers at The Goldman Sachs Group to a “strong-buy” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other brokerages have also recently weighed in on CMC. Zacks Research cut shares of Commercial Metals from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Commercial Metals in a report on Wednesday, January 21st. Wells Fargo & Company lowered their target price on Commercial Metals from $80.00 to $77.00 and set an “overweight” rating on the stock in a research report on Friday, March 27th. Morgan Stanley boosted their price target on Commercial Metals from $68.00 to $85.00 and gave the company an “overweight” rating in a report on Friday, January 9th. Finally, Jefferies Financial Group set a $85.00 price target on Commercial Metals and gave the stock a “buy” rating in a research report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Commercial Metals currently has an average rating of “Moderate Buy” and a consensus price target of $72.00.

Commercial Metals Price Performance

Shares of NYSE:CMC opened at $61.71 on Tuesday. The company has a quick ratio of 1.55, a current ratio of 2.38 and a debt-to-equity ratio of 0.75. The stock has a market capitalization of $6.84 billion, a PE ratio of 13.74, a price-to-earnings-growth ratio of 0.35 and a beta of 1.47. The firm’s 50 day moving average price is $71.42 and its 200-day moving average price is $66.59. Commercial Metals has a twelve month low of $37.92 and a twelve month high of $84.87.

Commercial Metals (NYSE:CMC) last announced its earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.28 by ($0.12). Commercial Metals had a net margin of 6.02% and a return on equity of 13.54%. The business had revenue of $2.13 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter last year, the firm posted $0.26 earnings per share. The business’s quarterly revenue was up 21.5% compared to the same quarter last year. Equities research analysts expect that Commercial Metals will post 3.09 EPS for the current year.

Insiders Place Their Bets

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

Institutional Trading of Commercial Metals

Several institutional investors have recently made changes to their positions in the business. Artemis Investment Management LLP purchased a new position in Commercial Metals in the 4th quarter worth approximately $103,962,000. Norges Bank purchased a new stake in Commercial Metals during the 2nd quarter valued at approximately $70,402,000. Vaughan Nelson Investment Management L.P. bought a new stake in shares of Commercial Metals during the third quarter valued at approximately $54,394,000. Encompass Capital Advisors LLC bought a new stake in shares of Commercial Metals during the second quarter valued at approximately $34,225,000. Finally, Merewether Investment Management LP purchased a new position in shares of Commercial Metals in the third quarter worth $26,847,000. Hedge funds and other 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.