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

Key Points

• Commercial Metals has a “Moderate Buy” consensus rating from 15 analysts, with nine buys, five holds and one strong buy. The average 12-month price target is $79.45, while recent targets range as high as $89.
• The company exceeded quarterly expectations, reporting $1.73 in EPS versus the $1.70 consensus and $2.48 billion in revenue, up 22.9% year over year. Analysts expect full-year EPS of approximately $6.64.
• CEO Peter R. Matt bought 8,230 shares for roughly $504,500, increasing his direct stake by 4.75%. Institutional investors own 86.9% of the stock, and CMC pays an annualized $0.80 dividend yielding about 1.1%.

Commercial Metals Company (NYSE:CMC - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the fifteen research firms that are presently covering the stock, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $79.4545.

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. reduced their price objective on Commercial Metals from $83.00 to $78.00 and set an "overweight" rating for the company in a research report on Tuesday, April 14th. Wells Fargo & Company upped their target price on Commercial Metals from $77.00 to $80.00 and gave the stock an "equal weight" rating in a research report on Friday, June 26th. UBS Group raised Commercial Metals from a "neutral" rating to a "buy" rating and raised their price target for the stock from $79.00 to $89.00 in a research note on Wednesday, May 13th. Morgan Stanley lifted their price target on Commercial Metals from $83.00 to $88.00 and gave the company an "overweight" rating in a report on Monday, June 22nd. Finally, Zacks Research raised Commercial Metals from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th.

Insider Buying and Selling

In other Commercial Metals news, CEO Peter R. Matt bought 8,230 shares of the firm's stock in a transaction on Friday, July 10th. The stock was bought 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 approximately $11,127,298.60. The trade was a 4.75% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.62% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Commercial Metals

Several institutional investors and hedge funds have recently modified their holdings of CMC. Global Retirement Partners LLC increased its position in Commercial Metals by 110.7% during the fourth quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company's stock worth $40,000 after buying an additional 301 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Commercial Metals in the fourth quarter worth about $54,000. Caitong International Asset Management Co. Ltd lifted its position in shares of 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 buying an additional 716 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Commercial Metals during the 4th quarter worth about $59,000. Finally, EverSource Wealth Advisors LLC increased its holdings 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 last quarter. Institutional investors and hedge funds own 86.90% of the company's stock.

Commercial Metals Stock Up 2.0%

Commercial Metals stock opened at $70.10 on Tuesday. Commercial Metals has a twelve month low of $50.10 and a twelve month high of $84.87. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. The firm has a market cap of $7.75 billion, a PE ratio of 13.20, a P/E/G ratio of 0.40 and a beta of 1.54. The firm's 50 day moving average price is $69.92 and its two-hundred day moving average price is $70.31.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The company had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same quarter last year, the business posted $0.74 EPS. The company's revenue for the quarter was up 22.9% on a year-over-year basis. On average, research analysts predict that Commercial Metals will post 6.64 EPS for the current fiscal year.

Commercial Metals Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were paid a $0.20 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.80 dividend on an annualized basis and a yield of 1.1%. Commercial Metals's payout ratio is 15.07%.

About Commercial Metals

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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