Morgan Stanley Issues Pessimistic Forecast for Commercial Metals (NYSE:CMC) Stock Price

Commercial Metals (NYSE:CMC) had its price objective cut by research analysts at Morgan Stanley from $88.00 to $84.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has an “overweight” rating on the basic materials company’s stock. Morgan Stanley’s price target would suggest a potential upside of 29.33% from the stock’s previous close.

CMC has been the subject of a number of other research reports. Barclays boosted their price target on shares of Commercial Metals from $75.00 to $80.00 and gave the stock an “equal weight” rating in a research note on Friday, August 7th. Wall Street Zen cut shares of Commercial Metals from a “buy” rating to a “hold” rating in a research report on Saturday. JPMorgan Chase & Co. dropped their price objective on shares of Commercial Metals from $83.00 to $80.00 and set an “overweight” rating for the company in a report on Friday, October 9th. BMO Capital Markets reiterated a “market perform” rating and issued a $73.00 target price on shares of Commercial Metals in a research report on Monday. Finally, Weiss Ratings upgraded shares of Commercial Metals from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday. Ten analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $79.45.

Commercial Metals Price Performance

Shares of CMC stock traded down $0.03 during trading hours on Monday, reaching $64.95. The stock had a trading volume of 377,096 shares, compared to its average volume of 1,201,636. The stock’s fifty day simple moving average is $66.80 and its 200 day simple moving average is $68.35. The company has a current ratio of 2.34, a quick ratio of 1.66 and a debt-to-equity ratio of 0.71. Commercial Metals has a 12 month low of $55.97 and a 12 month high of $84.87. The firm has a market capitalization of $7.19 billion, a PE ratio of 11.08, a PEG ratio of 0.25 and a beta of 1.53.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 EPS for the quarter, beating the consensus estimate of $1.95 by $0.14. The company had revenue of $2.66 billion during the quarter, compared to analysts’ expectations of $2.56 billion. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. Commercial Metals’s revenue for the quarter was up 25.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.37 earnings per share. On average, equities research analysts predict that Commercial Metals will post 7.67 EPS for the current year.

Commercial Metals announced that its board has authorized a share repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $600.00 million in outstanding shares. This repurchase authorization authorizes the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Share repurchase plans are often an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director John McPherson bought 1,390 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the acquisition, the director directly owned 21,927 shares of the company’s stock, valued at $1,576,989.84. The trade was a 6.77% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.62% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Commercial Metals

A number of large investors have recently bought and sold shares of CMC. USA Financial Formulas boosted its holdings in shares of Commercial Metals by 67.6% during the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company’s stock worth $30,000 after purchasing an additional 200 shares during the period. Global Retirement Partners LLC bought a new position in shares of Commercial Metals during the second quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of Commercial Metals by 617.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company’s stock valued at $58,000 after acquiring an additional 716 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in Commercial Metals in the second quarter worth $63,000. Finally, EverSource Wealth Advisors LLC lifted its stake in Commercial Metals by 105.0% in the first quarter. EverSource Wealth Advisors LLC now owns 1,222 shares of the basic materials company’s stock worth $75,000 after acquiring an additional 626 shares during the period. 86.90% of the stock is owned by hedge funds and other institutional investors.

Commercial Metals Company Profile

Commercial Metals Company (NYSE:CMC) is a steel and metals manufacturer, recycler and fabricator headquartered in Irving, Texas. The company produces and sells steel products used in construction, infrastructure and industrial applications, including reinforcing bar, wire rod, merchant bar, structural steel and related products.

CMC operates an integrated recycling and manufacturing model. Its recycling facilities collect and process ferrous and nonferrous scrap metal, which is used as raw material in the company’s electric-arc-furnace steel mills.