Commercial Metals (NYSE:CMC) CEO Purchases 8,230 Shares of Stock

Key Points

• CEO Peter Matt bought 8,230 shares of Commercial Metals at an average price of $61.30, a purchase worth about $504,499 that increased his ownership by 4.75%.
• The stock was trading up 1.9% to $63.82, while the company reported recent quarterly earnings of $1.73 per share, beating estimates and reflecting strong year-over-year revenue growth of 22.9%.
• Commercial Metals also announced a quarterly dividend of $0.20 per share, and Wall Street currently has a consensus Moderate Buy rating with a target price of $79.45.

Commercial Metals Company (NYSE:CMC - Get Free Report) CEO Peter Matt acquired 8,230 shares of the business's stock in a transaction that occurred on Friday, July 10th. The shares were purchased at an average cost of $61.30 per share, for a total transaction of $504,499.00. Following the acquisition, the chief executive officer owned 181,522 shares in the company, valued at $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

Commercial Metals Trading Up 1.9%

NYSE CMC traded up $1.18 during trading hours on Monday, reaching $63.82. The company's stock had a trading volume of 351,312 shares, compared to its average volume of 1,235,273. The firm has a fifty day simple moving average of $70.93 and a 200-day simple moving average of $70.75. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54. Commercial Metals Company has a 52 week low of $49.66 and a 52 week high of $84.87. The stock has a market cap of $7.06 billion, a P/E ratio of 12.00, a P/E/G ratio of 0.36 and a beta of 1.54.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.70 by $0.03. Commercial Metals had a return on equity of 15.69% and a net margin of 6.72%.The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period last year, the company earned $0.74 EPS. Commercial Metals's revenue for the quarter was up 22.9% compared to the same quarter last year. Equities analysts forecast that Commercial Metals Company will post 6.63 earnings per share for the current fiscal year.

Commercial Metals Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th will be paid 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 payout ratio is currently 15.07%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Citigroup cut their target price on Commercial Metals from $85.00 to $75.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. KeyCorp started coverage on shares of Commercial Metals in a report on Wednesday, March 25th. They set a "sector weight" rating on the stock. Jefferies Financial Group raised shares of Commercial Metals from a "buy" rating to a "buy" rating in a research note on Friday, June 5th. Bank of America reduced their price objective on shares of Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a report on Thursday. Finally, Zacks Research downgraded shares of Commercial Metals from a "hold" rating to a "strong sell" rating in a research report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Commercial Metals has a consensus rating of "Moderate Buy" and a consensus target price of $79.45.

Hedge Funds Weigh In On Commercial Metals

A number of hedge funds have recently bought and sold shares of the company. Fulton Bank N.A. boosted its holdings in shares of Commercial Metals by 10.0% in the 2nd quarter. Fulton Bank N.A. now owns 9,104 shares of the basic materials company's stock worth $571,000 after buying an additional 825 shares during the last quarter. Wealthcare Capital Partners LLC purchased a new stake in Commercial Metals during the second quarter worth about $204,000. Hennion & Walsh Asset Management Inc. purchased a new stake in Commercial Metals during the second quarter worth about $287,000. GAMMA Investing LLC raised its position in Commercial Metals by 25.6% in the second quarter. GAMMA Investing LLC now owns 3,572 shares of the basic materials company's stock worth $224,000 after acquiring an additional 728 shares during the period. Finally, Canandaigua National Bank & Trust Co. bought a new stake in Commercial Metals in the second quarter worth about $206,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

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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