Commercial Metals (NYSE:CMC) Cut to “Hold” at Wall Street Zen

Commercial Metals (NYSE:CMC) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other analysts have also issued reports on CMC. Weiss Ratings lowered shares of Commercial Metals from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 2nd. JPMorgan Chase & Co. reduced their target price on Commercial Metals from $83.00 to $80.00 and set an “overweight” rating on the stock in a report on Friday, October 9th. Wells Fargo & Company reiterated an “underperform” rating and set a $70.00 price objective on shares of Commercial Metals in a research note on Friday. Barclays raised their target price on shares of Commercial Metals from $75.00 to $80.00 and gave the company an “equal weight” rating in a research note on Friday, August 7th. Finally, Bank of America reduced their price objective on Commercial Metals from $84.00 to $78.00 and set a “buy” rating on the stock in a research note on Thursday, July 9th. Nine analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $80.45.

Commercial Metals Price Performance

Shares of NYSE CMC opened at $64.95 on Friday. Commercial Metals has a 52 week low of $55.70 and a 52 week high of $84.87. The stock has a market cap of $7.19 billion, a price-to-earnings ratio of 11.07, a PEG ratio of 0.25 and a beta of 1.53. The company has a current ratio of 2.34, a quick ratio of 1.54 and a debt-to-equity ratio of 0.71. The company’s 50-day moving average price is $66.80 and its 200 day moving average price is $68.29.

Commercial Metals (NYSE:CMC) last posted its earnings results on Thursday, October 15th. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.95 by $0.14. Commercial Metals had a return on equity of 17.00% and a net margin of 6.98%. The firm had revenue of $2.66 billion for the quarter, compared to analyst estimates of $2.56 billion. During the same quarter in the prior year, the company earned $1.37 EPS. Commercial Metals’s revenue was up 25.7% on a year-over-year basis. As a group, research analysts forecast that Commercial Metals will post 7.67 earnings per share for the current fiscal year.

Commercial Metals announced that its Board of Directors has authorized a stock buyback plan on Wednesday, August 5th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the basic materials company to reacquire up to 7.5% of its shares through open market purchases. Share repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Commercial Metals

In other Commercial Metals news, Director John McPherson bought 1,390 shares of the stock in a transaction on Thursday, August 13th. The stock was purchased at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the purchase, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. This trade represents a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.62% of the stock is owned by company insiders.

Institutional Trading of Commercial Metals

Several hedge funds have recently made changes to their positions in the stock. USA Financial Formulas grew its stake in Commercial Metals by 67.6% during the 1st quarter. USA Financial Formulas now owns 496 shares of the basic materials company’s stock worth $30,000 after buying an additional 200 shares during the last quarter. Global Retirement Partners LLC bought a new position in Commercial Metals in the 2nd quarter valued at about $34,000. Caitong International Asset Management Co. Ltd increased its stake 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 during the period. Integrated Wealth Concepts LLC acquired a new stake in Commercial Metals in the second quarter worth approximately $63,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of 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 valued at $75,000 after buying an additional 626 shares during the period. Institutional investors own 86.90% of the company’s stock.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Fourth-quarter results exceeded expectations. CMC reported adjusted EPS of $2.09, above the roughly $1.95–$1.97 consensus, while revenue rose 25.7% year over year to $2.66 billion, exceeding estimates by approximately $90 million. CMC Reports Fourth Quarter and Full Year Fiscal 2026 Results
• Positive Sentiment: Full-year profitability improved substantially. Fiscal 2026 net earnings reached $655.8 million, while consolidated core EBITDA increased to $1.4 billion from $837.3 million in fiscal 2025, reinforcing the company’s operating and cash-generation momentum. CMC closes out fiscal year with summer profits
• Positive Sentiment: Management sees durable end-market demand. CMC highlighted strong demand from data centers and semiconductor factories, while its recycling, steel and construction-products businesses supported summer profitability. These trends could benefit volumes and infrastructure-related demand. Commercial Metals Sees Strong Demand From Data Centers, Chip Factories
• Neutral Sentiment: Analysts and market commentary remain mixed. Zacks characterizes CMC as a strong growth stock, and management’s earnings-call commentary signaled further growth. However, other analysis considers the shares insufficiently attractive even as fundamentals improve, reflecting valuation and steel-cycle concerns. Here’s Why Commercial Metals is a Strong Growth Stock
• Negative Sentiment: The muted reaction may reflect cyclical and valuation risk. Despite the earnings beat and stronger outlook, investors may be concerned about metal-price volatility, construction demand and whether the improvement can persist. CMC’s shares remain below their 50-day and 200-day moving averages, indicating lingering technical pressure. Commercial Metals Company: Still Not Attractive but Getting Better

About Commercial Metals

Commercial Metals Company (NYSE: CMC) is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC’s product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.