Commercial Metals (CMC) Hits New 1-Year High on Strong Earnings

Commercial Metals (NYSE:CMC) reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $24.65 and last traded at $22.77, with a volume of 4448400 shares. The stock had previously closed at $21.32.

The basic materials company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.14. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.18 billion. Commercial Metals had a return on equity of 6.50% and a net margin of 0.95%. Commercial Metals’s quarterly revenue was up 24.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.06 EPS.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 31st. Investors of record on Tuesday, January 16th will be issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 1.96%. The ex-dividend date is Friday, January 12th. Commercial Metals’s dividend payout ratio is presently 120.00%.

Several brokerages recently weighed in on CMC. Citigroup lowered their price target on Commercial Metals from $22.00 to $21.00 and set a “buy” rating for the company in a research report on Friday, September 15th. Jefferies Group raised Commercial Metals from a “hold” rating to a “buy” rating in a research report on Tuesday, October 17th. Zacks Investment Research raised Commercial Metals from a “sell” rating to a “hold” rating and set a $24.00 price target for the company in a research report on Tuesday, October 17th. Finally, Bank of America raised Commercial Metals from a “neutral” rating to a “buy” rating and upped their price target for the company from $21.00 to $24.00 in a research report on Thursday, December 7th. Four research analysts have rated the stock with a sell rating and five have given a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $21.88.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. GSA Capital Partners LLP bought a new position in Commercial Metals during the 3rd quarter valued at approximately $295,000. Walthausen & Co. LLC raised its position in Commercial Metals by 10.8% during the 3rd quarter. Walthausen & Co. LLC now owns 346,160 shares of the basic materials company’s stock valued at $6,587,000 after purchasing an additional 33,610 shares during the last quarter. California Public Employees Retirement System raised its position in Commercial Metals by 4.5% during the 3rd quarter. California Public Employees Retirement System now owns 271,123 shares of the basic materials company’s stock valued at $5,159,000 after purchasing an additional 11,723 shares during the last quarter. Point72 Asset Management L.P. raised its position in Commercial Metals by 375.7% during the 3rd quarter. Point72 Asset Management L.P. now owns 460,000 shares of the basic materials company’s stock valued at $8,754,000 after purchasing an additional 363,300 shares during the last quarter. Finally, 3G Capital Partners LP bought a new position in shares of Commercial Metals in the 3rd quarter worth approximately $9,515,000. 88.55% of the stock is owned by institutional investors and hedge funds.

The company has a market cap of $2,655.68, a PE ratio of 61.20 and a beta of 1.26. The company has a quick ratio of 1.81, a current ratio of 2.82 and a debt-to-equity ratio of 0.58.

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Commercial Metals Company Profile

Commercial Metals Company, together with its subsidiaries, manufactures, recycles and markets steel and metal products, related materials and services through a network. The Company’s Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment consists of steel mills, commonly referred to as minimills that produce reinforcing bar (rebar), angles, flats and rounds.

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