Commercial Metals (NYSE:CMC) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Commercial Metals has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, following recent research reports.
• Analysts have mixed opinions on the stock, with one suggesting a Strong Buy rating, while others maintain Hold and Buy ratings, resulting in a consensus of "Moderate Buy" with an average price target of $58.81.
• The company reported Q2 earnings of $0.74 per share, falling short of estimates, and had a revenue dip of 2.8% year-over-year.

Commercial Metals (NYSE:CMC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Several other brokerages have also recently commented on CMC. Wells Fargo & Company raised shares of Commercial Metals to a "strong-buy" rating in a research report on Thursday, August 14th. Wolfe Research raised shares of Commercial Metals from a "peer perform" rating to an "outperform" rating in a research report on Friday, June 20th. BMO Capital Markets reissued a "market perform" rating and set a $55.00 price target (down from $57.00) on shares of Commercial Metals in a research report on Tuesday, June 24th. UBS Group boosted their price target on shares of Commercial Metals from $48.00 to $56.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 13th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Commercial Metals in a research report on Friday, June 20th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $58.81.

Commercial Metals Trading Down 2.4%

CMC opened at $57.86 on Friday. The stock has a market capitalization of $6.48 billion, a P/E ratio of 186.65, a P/E/G ratio of 1.79 and a beta of 1.33. Commercial Metals has a 12 month low of $37.92 and a 12 month high of $64.53. The firm's fifty day simple moving average is $54.88 and its 200 day simple moving average is $49.43. The company has a current ratio of 2.86, a quick ratio of 2.00 and a debt-to-equity ratio of 0.32.

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CMC. National Bank of Canada FI increased its stake in shares of Commercial Metals by 80.3% during the 1st quarter. National Bank of Canada FI now owns 548 shares of the basic materials company's stock worth $25,000 after purchasing an additional 244 shares during the last quarter. Park Square Financial Group LLC acquired a new position in Commercial Metals in the 4th quarter valued at about $33,000. Heck Capital Advisors LLC acquired a new position in Commercial Metals in the 4th quarter valued at about $34,000. SBI Securities Co. Ltd. grew its stake in Commercial Metals by 282.3% in the 2nd quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company's stock valued at $34,000 after buying an additional 511 shares during the last quarter. Finally, UMB Bank n.a. grew its stake in Commercial Metals by 51.9% in the 1st quarter. UMB Bank n.a. now owns 784 shares of the basic materials company's stock valued at $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.

Commercial Metals Company Profile

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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