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

Commercial Metals Company (NYSE:CMC) has been given a consensus recommendation of “Moderate Buy” by the thirteen analysts that are presently covering the stock, Marketbeat reports. Six research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $64.20.

Several research analysts have recently weighed in on the stock. Morgan Stanley raised shares of Commercial Metals from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $57.50 to $68.00 in a research report on Friday, October 24th. Wells Fargo & Company boosted their target price on shares of Commercial Metals from $64.00 to $68.00 and gave the company an “overweight” rating in a report on Thursday. Citigroup upgraded shares of Commercial Metals from a “neutral” rating to a “buy” rating and raised their price target for the stock from $60.00 to $65.00 in a report on Friday, October 17th. Wall Street Zen raised shares of Commercial Metals from a “buy” rating to a “strong-buy” rating in a research report on Monday, October 20th. Finally, JPMorgan Chase & Co. increased their price objective on Commercial Metals from $63.00 to $64.00 and gave the stock a “neutral” rating in a research report on Monday, October 20th.

Commercial Metals Price Performance

CMC stock opened at $57.44 on Friday. Commercial Metals has a 1 year low of $37.92 and a 1 year high of $64.53. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.78 and a quick ratio of 2.03. The firm has a market capitalization of $6.37 billion, a PE ratio of 75.57, a price-to-earnings-growth ratio of 1.94 and a beta of 1.34. The business has a 50 day simple moving average of $58.59 and a 200-day simple moving average of $53.17.

Commercial Metals (NYSE:CMC) last released its quarterly earnings data on Thursday, October 16th. The basic materials company reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.05. Commercial Metals had a return on equity of 8.76% and a net margin of 1.09%.The company had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.10 billion. During the same quarter in the previous year, the company posted $0.90 earnings per share. The firm’s revenue for the quarter was up 5.9% compared to the same quarter last year. Equities research analysts anticipate that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 13th. Investors of record on Thursday, October 30th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, October 30th. Commercial Metals’s dividend payout ratio (DPR) is presently 94.74%.

Insider Transactions at Commercial Metals

In related news, Director John R. Mcpherson bought 1,722 shares of the stock in a transaction on Monday, October 20th. The stock was bought at an average price of $58.09 per share, with a total value of $100,030.98. Following the completion of the purchase, the director directly owned 6,722 shares in the company, valued at $390,480.98. This represents a 34.44% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Commercial Metals

Several large investors have recently made changes to their positions in the stock. National Bank of Canada FI raised its position in Commercial Metals by 80.3% in the first quarter. National Bank of Canada FI now owns 548 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 244 shares during the period. Root Financial Partners LLC purchased a new stake in shares of Commercial Metals in the 3rd quarter valued at $25,000. SBI Securities Co. Ltd. lifted its stake in Commercial Metals by 282.3% during the 2nd quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company’s stock worth $34,000 after acquiring an additional 511 shares in the last quarter. Spire Wealth Management lifted its stake in Commercial Metals by 42.4% during the 3rd quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock worth $35,000 after acquiring an additional 183 shares in the last quarter. Finally, Signaturefd LLC boosted its holdings in Commercial Metals by 51.4% during the 2nd quarter. Signaturefd LLC now owns 890 shares of the basic materials company’s stock valued at $44,000 after acquiring an additional 302 shares during the period. 86.90% of the stock is currently owned by institutional investors and hedge funds.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.