Commercial Metals (NYSE:CMC) Stock Price Down 7.4% - Should You Sell?

Key Points

• Commercial Metals Company's (NYSE:CMC) stock price fell by 7.4%, dropping from a previous close of $59.68 to $55.28, amid lower trading volume.
• Despite the recent downturn, several analysts maintain a "buy" rating for the stock, with a consensus price target of $61.39.
• The company reported earnings of $1.37 per share for the last quarter, surpassing estimates, and announced a quarterly dividend of $0.18 per share.

Shares of Commercial Metals Company (NYSE:CMC - Get Free Report) traded down 7.4% during mid-day trading on Thursday . The stock traded as low as $54.72 and last traded at $55.28. 800,303 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 1,081,379 shares. The stock had previously closed at $59.68.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Jefferies Financial Group restated a "buy" rating on shares of Commercial Metals in a report on Friday, June 20th. Morgan Stanley set a $57.50 target price on shares of Commercial Metals in a report on Wednesday, June 25th. Zacks Research upgraded shares of Commercial Metals from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Wall Street Zen upgraded shares of Commercial Metals from a "hold" rating to a "buy" rating in a report on Sunday. Finally, BMO Capital Markets restated a "market perform" rating and issued a $55.00 target price (down previously from $57.00) on shares of Commercial Metals in a report on Tuesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $61.39.

Commercial Metals Trading Down 8.8%

The stock has a fifty day moving average of $57.75 and a 200 day moving average of $51.27. The company has a market capitalization of $6.10 billion, a P/E ratio of 175.24, a PEG ratio of 2.06 and a beta of 1.32. 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 released its earnings results on Thursday, October 16th. The basic materials company reported $1.37 earnings per share for the quarter, beating analysts' consensus estimates of $1.32 by $0.05. Commercial Metals had a net margin of 0.48% and a return on equity of 7.45%. During the same quarter in the previous year, the business posted $0.90 EPS. The business's quarterly revenue was up 5.9% compared to the same quarter last year. As a group, equities research analysts anticipate that Commercial Metals Company will post 3.09 EPS for the current fiscal year.

Commercial Metals Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 13th. Investors of record on Thursday, October 30th will be paid a dividend of $0.18 per share. The ex-dividend date is Thursday, October 30th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.3%. Commercial Metals's payout ratio is 232.26%.

Institutional Trading of Commercial Metals

Several hedge funds have recently bought and sold shares of the stock. Blue Trust Inc. lifted its stake in Commercial Metals by 2.3% in the 3rd quarter. Blue Trust Inc. now owns 7,867 shares of the basic materials company's stock worth $451,000 after purchasing an additional 180 shares in the last quarter. CWM LLC lifted its stake in Commercial Metals by 64.9% in the 3rd quarter. CWM LLC now owns 6,392 shares of the basic materials company's stock worth $366,000 after purchasing an additional 2,516 shares in the last quarter. Pacer Advisors Inc. purchased a new stake in Commercial Metals in the 3rd quarter worth $845,000. Green Alpha Advisors LLC lifted its stake in Commercial Metals by 4.2% in the 3rd quarter. Green Alpha Advisors LLC now owns 20,457 shares of the basic materials company's stock worth $1,172,000 after purchasing an additional 832 shares in the last quarter. Finally, Drummond Knight Asset Management Pty Ltd purchased a new stake in Commercial Metals in the 3rd quarter worth $15,579,000. Hedge funds and other 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.

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