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

Shares of Commercial Metals Company (NYSE:CMC) have been assigned a consensus recommendation of “Moderate Buy” from the fourteen research firms that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation, seven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $77.10.

A number of equities research analysts have commented on the company. Morgan Stanley lifted their target price on Commercial Metals from $75.00 to $83.00 and gave the company an “overweight” rating in a research report on Friday, May 29th. Deutsche Bank Aktiengesellschaft upgraded Commercial Metals to a “buy” rating in a report on Friday, May 22nd. Wells Fargo & Company reissued an “equal weight” rating and set a $77.00 price objective on shares of Commercial Metals in a research report on Thursday, June 4th. The Goldman Sachs Group initiated coverage on shares of Commercial Metals in a report on Wednesday, April 1st. They issued a “neutral” rating and a $74.00 price objective on the stock. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Commercial Metals in a research report on Tuesday, June 9th.

Commercial Metals Stock Performance

Shares of Commercial Metals stock opened at $72.50 on Monday. Commercial Metals has a one year low of $47.06 and a one year high of $84.87. The company has a market cap of $8.04 billion, a price-to-earnings ratio of 16.15, a PEG ratio of 0.41 and a beta of 1.50. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.55 and a current ratio of 2.38. The business’s 50 day moving average price is $71.44 and its 200 day moving average price is $71.04.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings data on Thursday, March 26th. The basic materials company reported $1.16 EPS for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.12). Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The company had revenue of $2.13 billion for the quarter, compared to analysts’ expectations of $2.10 billion. During the same quarter in the previous year, the business posted $0.26 EPS. The business’s quarterly revenue was up 21.5% compared to the same quarter last year. On average, research analysts predict that Commercial Metals will post 6.58 EPS for the current year.

Commercial Metals Increases Dividend

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of CMC. Royal Bank of Canada raised its holdings in shares of Commercial Metals by 1.4% in the 1st quarter. Royal Bank of Canada now owns 90,989 shares of the basic materials company’s stock valued at $4,186,000 after buying an additional 1,219 shares during the period. Amundi raised its holdings in shares of Commercial Metals by 13.3% in the 1st quarter. Amundi now owns 2,480 shares of the basic materials company’s stock valued at $114,000 after buying an additional 291 shares during the period. Jones Financial Companies Lllp raised its holdings in shares of Commercial Metals by 614.9% in the 1st quarter. Jones Financial Companies Lllp now owns 11,767 shares of the basic materials company’s stock valued at $541,000 after buying an additional 10,121 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Commercial Metals by 5.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,033,514 shares of the basic materials company’s stock valued at $47,552,000 after buying an additional 56,875 shares during the period. Finally, Empowered Funds LLC raised its holdings in shares of Commercial Metals by 1.8% in the 1st quarter. Empowered Funds LLC now owns 53,305 shares of the basic materials company’s stock valued at $2,453,000 after buying an additional 941 shares during the period. Institutional investors and hedge funds own 86.90% of the company’s stock.

About Commercial Metals

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.