Commercial Metals (NYSE:CMC) Trading Down 3.6% - Should You Sell?

Shares of Commercial Metals (NYSE:CMC - Get Free Report) dropped 3.6% during mid-day trading on Wednesday . The company traded as low as $48.01 and last traded at $48.85. Approximately 171,304 shares traded hands during trading, a decline of 82% from the average daily volume of 973,777 shares. The stock had previously closed at $50.67.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. BMO Capital Markets cut their target price on Commercial Metals from $58.00 to $54.00 and set a "market perform" rating on the stock in a research note on Friday, March 21st. UBS Group lowered their price target on shares of Commercial Metals from $54.00 to $49.00 and set a "neutral" rating on the stock in a report on Monday, March 24th. JPMorgan Chase & Co. assumed coverage on shares of Commercial Metals in a report on Friday, May 30th. They issued a "neutral" rating and a $52.00 price target on the stock. Wolfe Research raised shares of Commercial Metals from a "peer perform" rating to an "outperform" rating and set a $50.00 price target on the stock in a report on Tuesday, May 27th. Finally, Morgan Stanley lowered their price target on shares of Commercial Metals from $56.00 to $53.00 and set an "equal weight" rating on the stock in a report on Friday, March 7th. Six equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, Commercial Metals has a consensus rating of "Hold" and an average target price of $58.00.

Commercial Metals Trading Down 0.6%

The stock has a market cap of $5.46 billion, a P/E ratio of 43.57, a PEG ratio of 2.62 and a beta of 1.27. The firm's fifty day moving average price is $45.89 and its two-hundred day moving average price is $48.74. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.76 and a quick ratio of 1.94.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings results on Thursday, March 20th. The basic materials company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.05). The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.73 billion. Commercial Metals had a return on equity of 9.88% and a net margin of 1.70%. The company's revenue for the quarter was down 5.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.88 EPS. As a group, equities research analysts forecast that Commercial Metals will post 3.09 EPS for the current year.

Commercial Metals Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 9th. Stockholders of record on Monday, March 31st were issued a $0.18 dividend. The ex-dividend date was Monday, March 31st. This represents a $0.72 annualized dividend and a dividend yield of 1.49%. Commercial Metals's payout ratio is currently 120.00%.

Insider Transactions at Commercial Metals

In other news, Director John R. Mcpherson bought 2,475 shares of Commercial Metals stock in a transaction that occurred on Friday, April 4th. The shares were acquired at an average price of $40.42 per share, with a total value of $100,039.50. Following the completion of the purchase, the director now directly owns 15,141 shares in the company, valued at $611,999.22. The trade was a 19.54% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 0.46% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. National Bank of Canada FI increased its stake in 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 valued at $25,000 after acquiring an additional 244 shares during the last quarter. Park Square Financial Group LLC purchased a new stake in Commercial Metals during the fourth quarter valued at about $33,000. Heck Capital Advisors LLC purchased a new stake in Commercial Metals during the fourth quarter valued at about $34,000. V Square Quantitative Management LLC boosted its position in Commercial Metals by 60.7% during the fourth quarter. V Square Quantitative Management LLC now owns 707 shares of the basic materials company's stock valued at $35,000 after buying an additional 267 shares during the period. Finally, UMB Bank n.a. boosted its position in Commercial Metals by 51.9% during the first 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 period. Institutional investors own 86.90% of the company's stock.

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.