Commercial Metals Company (NYSE:CMC) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Commercial Metals Company has an average analyst rating of "Moderate Buy", with 8 buy ratings, 1 strong buy, 5 holds, and 1 sell. The average 12-month price target among covering analysts is about $79.45.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.73 versus $1.70 expected and revenue of $2.48 billion versus $2.40 billion expected. Revenue rose 22.9% year over year.
• Commercial Metals also declared a quarterly dividend of $0.20 per share, which annualizes to $0.80 and implies a dividend yield of about 1.3%. The payout ratio is relatively low at 15.07%.

Shares of Commercial Metals Company (NYSE:CMC - Get Free Report) have been given an average rating of "Moderate Buy" by the fifteen brokerages that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $79.4545.

A number of research analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Commercial Metals to a "buy" rating in a research note on Friday, May 22nd. BMO Capital Markets cut their price target on Commercial Metals from $80.00 to $77.00 and set a "market perform" rating for the company in a report on Monday, June 29th. Barclays started coverage on Commercial Metals in a research report on Thursday, May 21st. They issued an "equal weight" rating and a $75.00 price target for the company. Citigroup dropped their price objective on Commercial Metals from $85.00 to $75.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, JPMorgan Chase & Co. cut their target price on Commercial Metals from $83.00 to $78.00 and set an "overweight" rating for the company in a research note on Tuesday, April 14th.

Commercial Metals Price Performance

Shares of NYSE:CMC opened at $60.06 on Friday. The firm has a market capitalization of $6.64 billion, a PE ratio of 11.31, a P/E/G ratio of 0.35 and a beta of 1.54. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73. The company has a 50-day moving average price of $71.01 and a two-hundred day moving average price of $70.81. Commercial Metals has a twelve month low of $49.66 and a twelve month high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.70 by $0.03. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.40 billion. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The company's quarterly revenue was up 22.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.74 earnings per share. Equities analysts forecast that Commercial Metals will post 6.59 EPS for the current year.

Commercial Metals Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Monday, July 6th. Commercial Metals's dividend payout ratio is presently 15.07%.

Hedge Funds Weigh In On Commercial Metals

Hedge funds have recently bought and sold shares of the company. State Street Corp boosted its holdings in Commercial Metals by 1.5% in the 4th quarter. State Street Corp now owns 6,361,477 shares of the basic materials company's stock valued at $440,341,000 after purchasing an additional 91,104 shares during the period. Boston Partners increased its holdings in shares of Commercial Metals by 1.9% in the third quarter. Boston Partners now owns 3,641,930 shares of the basic materials company's stock worth $208,629,000 after purchasing an additional 67,139 shares during the period. Geode Capital Management LLC raised its position in shares of Commercial Metals by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company's stock worth $202,626,000 after buying an additional 86,749 shares in the last quarter. Invesco Ltd. boosted its stake in Commercial Metals by 4.8% during the third quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company's stock valued at $95,144,000 after buying an additional 76,365 shares during the period. Finally, Bank of America Corp DE boosted its stake in Commercial Metals by 87.4% during the first quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company's stock valued at $100,205,000 after buying an additional 760,985 shares during the period. Hedge funds and other institutional investors own 86.90% of the company's stock.

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.

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