Commercial Metals Company (NYSE:CMC) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Commercial Metals Company (NYSE:CMC) has received a consensus rating of “Moderate Buy” from analysts, with an average one-year price target of $58.81.
• The company reported $0.74 earnings per share for the last quarter, missing analyst expectations and showing a revenue drop of 2.8% year-over-year.
• Commercial Metals recently declared a quarterly dividend of $0.18, resulting in an annualized dividend yield of 1.2%.

Shares of Commercial Metals Company (NYSE:CMC - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the nine analysts that are covering the firm, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $58.8125.

A number of brokerages have weighed in on CMC. Wolfe Research raised shares of Commercial Metals from a "peer perform" rating to an "outperform" rating in a research note on Friday, June 20th. UBS Group lifted their price target on shares of Commercial Metals from $48.00 to $56.00 and gave the company a "neutral" rating in a research note on Wednesday, August 13th. Wall Street Zen downgraded shares of Commercial Metals from a "buy" rating to a "hold" rating in a report on Saturday. Morgan Stanley set a $57.50 price objective on shares of Commercial Metals in a report on Wednesday, June 25th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a report on Monday, July 14th.

Commercial Metals Stock Down 2.4%

Commercial Metals stock opened at $57.86 on Friday. The company's 50 day simple moving average is $54.88 and its 200 day simple moving average is $49.43. Commercial Metals has a fifty-two week low of $37.92 and a fifty-two week high of $64.53. The firm has a market capitalization of $6.48 billion, a price-to-earnings ratio of 186.65, a PEG ratio of 1.79 and a beta of 1.33. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.86 and a quick ratio of 2.00.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings data on Monday, June 23rd. The basic materials company reported $0.74 earnings per share for the quarter, missing the consensus estimate of $0.85 by ($0.11). Commercial Metals had a return on equity of 7.45% and a net margin of 0.48%.The firm had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same period in the previous year, the business earned $1.02 EPS. The firm's revenue was down 2.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Commercial Metals will post 3.09 EPS for the current year.

Commercial Metals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 9th. Stockholders of record on Monday, June 30th were issued a $0.18 dividend. The ex-dividend date was Monday, June 30th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.2%. Commercial Metals's dividend payout ratio (DPR) is 232.26%.

Institutional Trading of Commercial Metals

Hedge funds and other institutional investors have recently made changes to their positions in the business. National Bank of Canada FI raised its holdings in shares of Commercial Metals by 80.3% in the first quarter. National Bank of Canada FI now owns 548 shares of the basic materials company's stock valued at $25,000 after purchasing an additional 244 shares during the last quarter. Park Square Financial Group LLC acquired a new stake in shares of Commercial Metals in the fourth quarter valued at approximately $33,000. Heck Capital Advisors LLC acquired a new position in Commercial Metals during the fourth quarter worth $34,000. SBI Securities Co. Ltd. increased its holdings in Commercial Metals by 282.3% during the second quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company's stock worth $34,000 after buying an additional 511 shares during the last quarter. Finally, UMB Bank n.a. increased its holdings in Commercial Metals by 51.9% during the first quarter. UMB Bank n.a. now owns 784 shares of the basic materials company's stock worth $36,000 after buying an additional 268 shares during the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.

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