Wall Street Zen Downgrades Commercial Metals (NYSE:CMC) to Hold

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.

Wall Street Zen lowered shares of Commercial Metals (NYSE:CMC - Free Report) from a buy rating to a hold rating in a research report released on Saturday morning.

Several other equities analysts also recently weighed in on CMC. Morgan Stanley set a $57.50 target price on Commercial Metals in a research report on Wednesday, June 25th. JPMorgan Chase & Co. upped their price objective on Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. Wells Fargo & Company raised Commercial Metals to a "strong-buy" rating in a research report on Thursday, August 14th. Wolfe Research raised Commercial Metals from a "peer perform" rating to an "outperform" rating in a research report on Friday, June 20th. Finally, UBS Group upped their price objective on Commercial Metals from $48.00 to $56.00 and gave the company a "neutral" rating in a research report on Wednesday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, Commercial Metals presently has a consensus rating of "Moderate Buy" and an average price target of $60.06.

Commercial Metals Price Performance

Shares of CMC traded up $1.22 during mid-day trading on Friday, hitting $59.70. 1,453,377 shares of the stock were exchanged, compared to its average volume of 848,566. The company has a market cap of $6.68 billion, a PE ratio of 192.56, a price-to-earnings-growth ratio of 2.05 and a beta of 1.33. Commercial Metals has a 52-week low of $37.92 and a 52-week high of $64.53. The firm has a 50-day moving average of $55.42 and a two-hundred day moving average of $49.71. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.00 and a current ratio of 2.86.

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. National Bank of Canada FI raised its stake in shares of Commercial Metals by 80.3% in the first 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 stake in Commercial Metals during the fourth quarter worth about $33,000. Heck Capital Advisors LLC acquired a new stake in Commercial Metals during the fourth quarter worth about $34,000. SBI Securities Co. Ltd. grew its holdings in Commercial Metals by 282.3% in the second quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company's stock valued at $34,000 after purchasing an additional 511 shares during the period. Finally, UMB Bank n.a. grew its holdings in Commercial Metals by 51.9% in the first quarter. UMB Bank n.a. now owns 784 shares of the basic materials company's stock valued at $36,000 after purchasing an additional 268 shares during the period. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

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.