Commercial Metals Company (NYSE:CMC) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Commercial Metals has a consensus analyst rating of "Moderate Buy", based on 15 ratings: eight buys, one strong buy, and six holds. The average 12-month price target is $77.10.
• Recent analyst moves were mixed but generally constructive, with UBS upgrading the stock to buy and lifting its target to $89, while Morgan Stanley raised its target to $83 and kept an overweight rating.
• The company recently reported earnings below expectations but revenue beat estimates and grew 21.5% year over year. Commercial Metals also raised its quarterly dividend to $0.20 per share from $0.18.

Commercial Metals Company (NYSE:CMC - Get Free Report) has been given an average recommendation of "Moderate Buy" by the fifteen ratings firms that are currently covering the stock, MarketBeat reports. Six equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $77.10.

Several brokerages recently weighed in on CMC. UBS Group raised shares of Commercial Metals from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $79.00 to $89.00 in a research note on Wednesday, May 13th. Wells Fargo & Company reiterated an "equal weight" rating and set a $77.00 target price on shares of Commercial Metals in a research report on Thursday, June 4th. KeyCorp started coverage on shares of Commercial Metals in a report on Wednesday, March 25th. They set a "sector weight" rating on the stock. Morgan Stanley boosted their target price on Commercial Metals from $75.00 to $83.00 and gave the company an "overweight" rating in a research report on Friday, May 29th. Finally, Barclays assumed coverage on Commercial Metals in a research note on Thursday, May 21st. They issued an "equal weight" rating and a $75.00 price objective for the company.

More Commercial Metals News

Here are the key news stories impacting Commercial Metals this week:

• Negative Sentiment: Zacks Research trimmed its near-term and longer-dated EPS forecasts for Commercial Metals, including FY2026, FY2027, FY2028, and several quarterly periods, signaling a more cautious view on profitability. Article Title
• Neutral Sentiment: Despite the cuts, Zacks’ updated estimates remain roughly in line with or slightly above the current consensus for full-year earnings, suggesting the revisions were not severe enough to materially change the broader outlook.
• Neutral Sentiment: The company recently reported quarterly EPS below expectations, but revenue beat estimates and was up sharply year over year, leaving investors to weigh weaker profit delivery against solid sales momentum.

Commercial Metals Stock Performance

NYSE CMC opened at $77.73 on Monday. The firm's fifty day moving average price is $70.20 and its two-hundred day moving average price is $70.70. The stock has a market cap of $8.62 billion, a PE ratio of 17.31, a PEG ratio of 0.47 and a beta of 1.50. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.55 and a current ratio of 2.38. Commercial Metals has a fifty-two week low of $47.06 and a fifty-two week high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 EPS for the quarter, missing analysts' consensus estimates of $1.28 by ($0.12). The firm had revenue of $2.13 billion during the quarter, compared to the consensus estimate of $2.10 billion. Commercial Metals had a net margin of 6.02% and a return on equity of 13.54%. The firm's revenue was up 21.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.26 earnings per share. On average, equities analysts expect that Commercial Metals will post 6.4 EPS for the current fiscal year.

Commercial Metals Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Monday, April 6th were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Monday, April 6th. This is a boost from Commercial Metals's previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a dividend yield of 1.0%. Commercial Metals's payout ratio is presently 16.04%.

Institutional Trading of Commercial Metals

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC boosted its position in shares of Commercial Metals by 4.2% during the first quarter. NewEdge Advisors LLC now owns 3,610 shares of the basic materials company's stock valued at $222,000 after buying an additional 147 shares during the last quarter. Segall Bryant & Hamill LLC bought a new stake in shares of Commercial Metals in the 1st quarter worth $1,046,000. Bank of America Corp DE lifted its position in shares of 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 purchasing an additional 760,985 shares in the last quarter. Edgestream Partners L.P. boosted its holdings in Commercial Metals by 2,356.3% during the first quarter. Edgestream Partners L.P. now owns 154,183 shares of the basic materials company's stock worth $9,471,000 after purchasing an additional 147,906 shares during the last quarter. Finally, Janus Henderson Group PLC grew its position in Commercial Metals by 3.0% in the 1st quarter. Janus Henderson Group PLC now owns 505,209 shares of the basic materials company's stock worth $31,037,000 after purchasing an additional 14,733 shares in the last quarter. 86.90% of the stock is owned by institutional investors.

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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