Commercial Metals (NYSE:CMC) Given New $68.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo cut Commercial Metals’ price target to $68 from $80 while maintaining an “equal weight” rating, implying approximately 3.68% upside from the prior close.
• Analyst sentiment remains generally positive, with nine Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $80.55.
• Commercial Metals authorized a $600 million share-repurchase program, covering up to 7.5% of outstanding shares; insiders have also recently purchased company stock.

Commercial Metals (NYSE:CMC - Get Free Report) had its target price cut by Wells Fargo & Company from $80.00 to $68.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has an "equal weight" rating on the basic materials company's stock. Wells Fargo & Company's price objective points to a potential upside of 3.68% from the stock's previous close.

Other equities analysts also recently issued reports about the stock. Zacks Research upgraded shares of Commercial Metals from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. BNP Paribas Exane raised shares of Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 target price on the stock in a research note on Wednesday, July 8th. Morgan Stanley raised their price objective on shares of Commercial Metals from $83.00 to $88.00 and gave the company an "overweight" rating in a report on Monday, June 22nd. Weiss Ratings downgraded Commercial Metals from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $85.00 price objective on shares of Commercial Metals in a research note on Thursday, August 6th. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $80.55.

Commercial Metals Stock Performance

Shares of CMC stock opened at $65.59 on Tuesday. Commercial Metals has a one year low of $53.08 and a one year high of $84.87. The stock has a market cap of $7.26 billion, a P/E ratio of 12.40, a P/E/G ratio of 0.32 and a beta of 1.53. The company has a fifty day moving average price of $68.07 and a two-hundred day moving average price of $68.14. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54.

Commercial Metals declared that its board has authorized a stock repurchase program on Wednesday, August 5th that permits the company to buyback $600.00 million in outstanding shares. This buyback authorization permits the basic materials company to purchase up to 7.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Insider Activity

In other Commercial Metals news, Director John R. Mcpherson bought 1,390 shares of Commercial Metals stock in a transaction dated Thursday, August 13th. The stock was bought at an average cost of $71.92 per share, with a total value of $99,968.80. Following the completion of the acquisition, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. The trade was a 6.77% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Peter R. Matt purchased 8,230 shares of the firm's stock in a transaction that occurred on Friday, July 10th. The shares were acquired at an average cost of $61.30 per share, with a total value of $504,499.00. Following the completion of the transaction, the chief executive officer directly owned 181,522 shares of the company's stock, valued at $11,127,298.60. The trade was a 4.75% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.62% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. USA Financial Formulas boosted its holdings in shares of Commercial Metals by 67.6% in 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 purchased a new stake in Commercial Metals during the second quarter worth about $34,000. Caitong International Asset Management Co. Ltd raised its position in Commercial Metals by 617.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company's stock worth $58,000 after acquiring an additional 716 shares during the period. Integrated Wealth Concepts LLC purchased a new position in Commercial Metals in the second quarter valued at about $63,000. Finally, EverSource Wealth Advisors LLC grew its position in shares of Commercial Metals by 105.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,222 shares of the basic materials company's stock valued at $75,000 after acquiring an additional 626 shares during the period. Institutional investors own 86.90% of the company's stock.

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.

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