Commercial Metals (NYSE:CMC) Coverage Initiated by Analysts at KeyCorp

Key Points

• Commercial Metals (CMC) was newly covered by KeyCorp, which assigned the stock a "sector weight" rating.
• Analyst consensus is a Moderate Buy with a $72.80 average price target; eight analysts rate Buy and five rate Hold, and recent notable moves include JPMorgan raising to Overweight and Jefferies setting an $85 target.
• Q4 results beat estimates—EPS $1.84 vs. $1.55 and revenue $2.12B (up 11% YoY)—and the stock trades at a P/E of 16.46 with a market cap of about $7.08 billion.

Stock analysts at KeyCorp assumed coverage on shares of Commercial Metals (NYSE:CMC - Get Free Report) in a research report issued to clients and investors on Wednesday. The firm set a "sector weight" rating on the basic materials company's stock.

Several other brokerages have also commented on CMC. Wall Street Zen raised Commercial Metals from a "buy" rating to a "strong-buy" rating in a research report on Friday, November 28th. JPMorgan Chase & Co. upgraded shares of Commercial Metals from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $64.00 to $78.00 in a research note on Friday, December 5th. Weiss Ratings reissued a "hold (c)" rating on shares of Commercial Metals in a research report on Wednesday, January 21st. Jefferies Financial Group set a $85.00 price objective on shares of Commercial Metals and gave the stock a "buy" rating in a research note on Thursday, January 8th. Finally, Zacks Research cut shares of Commercial Metals from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 3rd. Eight equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $72.80.

Commercial Metals Stock Up 3.2%

CMC stock opened at $63.86 on Wednesday. Commercial Metals has a fifty-two week low of $37.92 and a fifty-two week high of $84.87. The company has a market capitalization of $7.08 billion, a price-to-earnings ratio of 16.46, a price-to-earnings-growth ratio of 0.33 and a beta of 1.47. The business's 50 day moving average price is $73.49 and its two-hundred day moving average price is $66.59. The company has a debt-to-equity ratio of 0.77, a quick ratio of 3.70 and a current ratio of 4.47.

Commercial Metals (NYSE:CMC - Get Free Report) last released its earnings results on Thursday, January 8th. The basic materials company reported $1.84 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.29. The company had revenue of $2.12 billion during the quarter, compared to analysts' expectations of $2.06 billion. Commercial Metals had a return on equity of 11.43% and a net margin of 5.46%.The firm's revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.78 EPS. As a group, analysts forecast that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Insider Transactions at Commercial Metals

In related news, insider Jennifer J. Durbin sold 25,050 shares of the company's stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total value of $2,003,248.50. Following the transaction, the insider owned 52,880 shares in the company, valued at $4,228,813.60. The trade was a 32.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Dennis V. Arriola acquired 2,000 shares of Commercial Metals stock in a transaction on Tuesday, January 20th. The shares were purchased at an average price of $74.69 per share, with a total value of $149,380.00. Following the completion of the purchase, the director owned 9,238 shares in the company, valued at $689,986.22. This represents a 27.63% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Commercial Metals

A number of hedge funds have recently added to or reduced their stakes in the company. Root Financial Partners LLC purchased a new stake in Commercial Metals during the 3rd quarter valued at $25,000. Rothschild Investment LLC lifted its holdings in shares of Commercial Metals by 169.6% during the third quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company's stock valued at $29,000 after purchasing an additional 324 shares in the last quarter. Global Retirement Partners LLC boosted its position in shares of Commercial Metals by 110.7% during the fourth quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company's stock valued at $40,000 after buying an additional 301 shares during the last quarter. Spire Wealth Management increased its holdings in Commercial Metals by 42.4% in the 3rd quarter. Spire Wealth Management now owns 615 shares of the basic materials company's stock worth $35,000 after buying an additional 183 shares in the last quarter. Finally, V Square Quantitative Management LLC bought a new stake in Commercial Metals in the 4th quarter worth about $54,000. 86.90% of the stock is currently owned by hedge funds and other 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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