Cemex (NYSE:CX) Hits New 52-Week High - Should You Buy?

Key Points

• Cemex stock hit a new 52-week high of $13.41 (last traded $13.4550) on Wednesday with about 1.75M shares traded; the company has a market cap of roughly $19.65B and a P/E near 42.4.
• Analysts are split — six Buys and six Holds — producing an average rating of "Moderate Buy" and an average price target of $12.77, while Morgan Stanley recently upgraded Cemex to Overweight with a $14 target.
• Hedge funds and institutional investors have markedly increased positions (e.g., Schroder +406%, Wellington +452%), and institutions now own about 82.97% of the stock.

Cemex S.A.B. de C.V. (NYSE:CX - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The company traded as high as $13.41 and last traded at $13.4550, with a volume of 1747216 shares trading hands. The stock had previously closed at $12.87.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CX. Morgan Stanley raised Cemex from an "equal weight" rating to an "overweight" rating and set a $14.00 price target for the company in a report on Monday, March 23rd. Zacks Research lowered Cemex from a "strong-buy" rating to a "hold" rating in a report on Monday, February 9th. HSBC cut Cemex from a "buy" rating to a "hold" rating and set a $12.80 price objective for the company. in a research report on Friday, February 6th. Wall Street Zen downgraded Cemex from a "strong-buy" rating to a "hold" rating in a research note on Sunday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Cemex in a research note on Wednesday, January 21st. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Cemex presently has an average rating of "Moderate Buy" and an average target price of $12.77.

Cemex Stock Performance

The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.63 and a current ratio of 0.87. The firm's 50-day moving average price is $11.52 and its two-hundred day moving average price is $11.41. The stock has a market cap of $19.65 billion, a price-to-earnings ratio of 42.39 and a beta of 1.51.

Cemex (NYSE:CX - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The construction company reported $0.16 earnings per share (EPS) for the quarter. Cemex had a net margin of 2.74% and a return on equity of 3.64%. On average, analysts expect that Cemex S.A.B. de C.V. will post 0.92 EPS for the current fiscal year.

Cemex Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Stockholders of record on Wednesday, March 11th were given a dividend of $0.0225 per share. This represents a $0.09 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Wednesday, March 11th. This is a boost from Cemex's previous quarterly dividend of $0.02. Cemex's dividend payout ratio is presently 28.13%.

Insider Buying and Selling

In related news, insider Herrera Jesus Vicente Gonzalez sold 35,000 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $12.16, for a total value of $425,600.00. Following the completion of the transaction, the insider directly owned 846,010 shares in the company, valued at approximately $10,287,481.60. This represents a 3.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Cemex

Hedge funds have recently modified their holdings of the business. Schroder Investment Management Group raised its holdings in Cemex by 406.2% in the 4th quarter. Schroder Investment Management Group now owns 26,348,884 shares of the construction company's stock valued at $302,749,000 after buying an additional 21,143,554 shares during the period. Wellington Management Group LLP boosted its stake in Cemex by 451.7% during the third quarter. Wellington Management Group LLP now owns 16,897,356 shares of the construction company's stock worth $151,907,000 after buying an additional 13,834,438 shares during the period. Orbis Allan Gray Ltd increased its position in shares of Cemex by 90.2% during the second quarter. Orbis Allan Gray Ltd now owns 26,300,519 shares of the construction company's stock valued at $182,263,000 after acquiring an additional 12,469,417 shares during the last quarter. WCM Investment Management LLC acquired a new stake in shares of Cemex during the third quarter valued at about $48,699,000. Finally, Itau Unibanco Holding S.A. raised its stake in shares of Cemex by 53.1% in the 4th quarter. Itau Unibanco Holding S.A. now owns 10,857,832 shares of the construction company's stock valued at $125,392,000 after acquiring an additional 3,766,639 shares during the period. 82.97% of the stock is currently owned by hedge funds and other institutional investors.

Cemex Company Profile

Cemex NYSE: CX is a global building materials company headquartered in Monterrey, Mexico. The company produces, distributes and sells cement, ready-mix concrete and aggregates, as well as related building materials, to construction markets in more than 50 countries. Cemex's product portfolio also includes asphalt and mortar mixes, waste-derived fuels and other complementary construction solutions, supported by a network of production facilities, distribution centers and logistics operations.

Founded in 1906 as Cementos Hidalgo, the company adopted the Cemex name in 1976 following a series of domestic mergers and expansions.

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