Commercial Metals (NYSE:CMC) Price Target Cut to $80.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered Commercial Metals’ price target from $83 to $80 while maintaining an “overweight” rating, implying approximately 25% upside from the reported share price.
• Analyst sentiment remains generally positive: Commercial Metals has nine Buy ratings and six Hold ratings, resulting in a “Moderate Buy” consensus and an average target price of $80.27.
• Shares rose 1.3% to $63.93, while the company approved a $600 million stock-repurchase program authorizing buybacks of up to 7.5% of outstanding shares.

Commercial Metals (NYSE:CMC - Get Free Report) had its price objective dropped by investment analysts at JPMorgan Chase & Co. from $83.00 to $80.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the basic materials company's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 25.13% from the company's current price.

Several other equities analysts have also weighed in on the stock. The Goldman Sachs Group restated a "buy" rating and set a $85.00 target price on shares of Commercial Metals in a report on Thursday, August 6th. Wells Fargo & Company cut their price objective on Commercial Metals from $80.00 to $68.00 and set an "equal weight" rating on the stock in a research report on Tuesday. Weiss Ratings cut Commercial Metals from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, October 2nd. Zacks Research raised Commercial Metals from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Finally, BNP Paribas Exane upgraded Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 target price for the company in a research note on Wednesday, July 8th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Commercial Metals presently has an average rating of "Moderate Buy" and an average target price of $80.27.

Commercial Metals Trading Up 1.3%

Shares of NYSE CMC traded up $0.83 during midday trading on Friday, hitting $63.93. The stock had a trading volume of 633,564 shares, compared to its average volume of 1,191,708. The company has a fifty day moving average price of $67.76 and a 200 day moving average price of $68.20. The company has a market capitalization of $7.07 billion, a price-to-earnings ratio of 12.04, a PEG ratio of 0.32 and a beta of 1.53. Commercial Metals has a 1-year low of $53.08 and a 1-year high of $84.87. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73.

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

Insider Buying and Selling

In other Commercial Metals news, Director John McPherson acquired 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 purchase, the director directly owned 21,927 shares in the company, valued at $1,576,989.84. This trade represents a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.62% of the company's stock.

Institutional Trading of Commercial Metals

A number of hedge funds have recently made changes to their positions in the stock. USA Financial Formulas boosted 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 valued at $30,000 after acquiring an additional 200 shares during the last quarter. Global Retirement Partners LLC bought a new position in shares of Commercial Metals during the second quarter worth about $34,000. Caitong International Asset Management Co. Ltd grew its stake 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 purchasing an additional 716 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in Commercial Metals in the second quarter worth about $63,000. Finally, EverSource Wealth Advisors LLC increased its holdings 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 valued at $75,000 after buying an additional 626 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company's stock.

Commercial Metals Company Profile

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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