Commercial Metals (NYSE:CMC) Price Target Lowered to $78.00 at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. cut its price target on Commercial Metals from $83 to $78 but maintained an overweight rating, implying roughly an 18.2% upside from the prior close.
• Commercial Metals reported Q1 EPS of $1.16 (vs. $1.28 expected) while revenue rose 21.5% to $2.13 billion; the stock traded around $65.98 and carries an average analyst target of $71.50 with a "Moderate Buy" consensus.
• Insider Jennifer J. Durbin sold 25,050 shares at about $79.97, and institutional investors own about 86.9% of the company, signaling heavy institutional participation.

Commercial Metals (NYSE:CMC - Get Free Report) had its target price reduced by equities research analysts at JPMorgan Chase & Co. from $83.00 to $78.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has an "overweight" rating on the basic materials company's stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 18.22% from the stock's previous close.

Several other analysts have also commented on CMC. Zacks Research lowered Commercial Metals from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 3rd. The Goldman Sachs Group started coverage on Commercial Metals in a research report on Wednesday, April 1st. They set a "neutral" rating and a $74.00 target price on the stock. Wells Fargo & Company decreased their price target on Commercial Metals from $80.00 to $77.00 and set an "overweight" rating for the company in a research note on Friday, March 27th. Jefferies Financial Group set a $85.00 price target on Commercial Metals and gave the stock a "buy" rating in a report on Thursday, January 8th. Finally, KeyCorp assumed coverage on Commercial Metals in a research note on Wednesday, March 25th. They set a "sector weight" rating on the stock. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $71.50.

Commercial Metals Stock Down 0.4%

CMC traded down $0.27 on Tuesday, hitting $65.98. The company had a trading volume of 252,350 shares, compared to its average volume of 1,294,649. The stock has a market capitalization of $7.32 billion, a price-to-earnings ratio of 14.70, a P/E/G ratio of 0.38 and a beta of 1.47. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.55 and a current ratio of 2.38. The stock has a fifty day moving average price of $69.54 and a 200-day moving average price of $66.99. Commercial Metals has a 12-month low of $41.17 and a 12-month high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings data on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.28 by ($0.12). Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The firm had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.10 billion. During the same period in the previous year, the firm earned $0.26 EPS. The firm's quarterly revenue was up 21.5% on a year-over-year basis. Analysts predict that Commercial Metals will post 3.09 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Jennifer J. Durbin sold 25,050 shares of the stock in a transaction that occurred on 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 approximately $4,228,813.60. This represents a 32.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dennis V. Arriola acquired 2,000 shares of the firm's stock in a transaction on Tuesday, January 20th. The shares were acquired 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 approximately $689,986.22. This trade represents a 27.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.62% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Commercial Metals

Several hedge funds have recently added to or reduced their stakes in CMC. State Street Corp boosted its stake in shares of Commercial Metals by 1.5% in the fourth quarter. State Street Corp now owns 6,361,477 shares of the basic materials company's stock worth $440,341,000 after buying an additional 91,104 shares during the last quarter. Boston Partners raised its position in Commercial Metals by 1.9% during the third quarter. Boston Partners now owns 3,641,930 shares of the basic materials company's stock valued at $208,629,000 after acquiring an additional 67,139 shares in the last quarter. Geode Capital Management LLC raised its position in Commercial Metals by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company's stock valued at $202,626,000 after acquiring an additional 86,749 shares in the last quarter. American Century Companies Inc. lifted its holdings in Commercial Metals by 6.6% in the third quarter. American Century Companies Inc. now owns 1,823,923 shares of the basic materials company's stock valued at $104,474,000 after acquiring an additional 112,267 shares during the period. Finally, Invesco Ltd. lifted its holdings in Commercial Metals by 4.8% in the third quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company's stock valued at $95,144,000 after acquiring an additional 76,365 shares during the period. 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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