Commercial Metals (NYSE:CMC) Upgraded at Wells Fargo & Company

Key Points

• Wells Fargo & Company has upgraded Commercial Metals (NYSE:CMC) to a "strong-buy" rating, reflecting positive analyst sentiment towards the stock.
• Commercial Metals reported an EPS of $0.74 for the last quarter, missing consensus estimates by $0.11, while revenue decreased by 2.8% year-over-year.
• The company's average rating is currently categorized as a "Moderate Buy" with a consensus target price of $58.81.

Wells Fargo & Company upgraded shares of Commercial Metals (NYSE:CMC - Free Report) to a strong-buy rating in a report released on Thursday morning,Zacks.com reports.

A number of other equities research analysts have also recently weighed in on the company. BMO Capital Markets restated a "market perform" rating and issued a $55.00 price target (down previously from $57.00) on shares of Commercial Metals in a research note on Tuesday, June 24th. Wolfe Research raised shares of Commercial Metals from a "peer perform" rating to an "outperform" rating in a research 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. Jefferies Financial Group reiterated a "buy" rating on shares of Commercial Metals in a research note on Friday, June 20th. Finally, UBS Group raised their price objective 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. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Commercial Metals has a consensus rating of "Moderate Buy" and an average target price of $58.81.

Commercial Metals Stock Performance

Shares of CMC stock traded down $0.59 on Thursday, reaching $56.96. The stock had a trading volume of 153,340 shares, compared to its average volume of 1,098,378. Commercial Metals has a 12 month low of $37.92 and a 12 month high of $64.53. The firm has a market capitalization of $6.38 billion, a price-to-earnings ratio of 183.73, a P/E/G ratio of 2.63 and a beta of 1.28. The firm's 50-day moving average is $51.92 and its two-hundred day moving average is $48.48. The company has a quick ratio of 2.00, a current ratio of 2.86 and a debt-to-equity ratio of 0.32.

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

Commercial Metals Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 9th. Investors of record on Monday, June 30th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Monday, June 30th. Commercial Metals's payout ratio is 232.26%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. State Street Corp boosted its holdings in shares of Commercial Metals by 1.2% in the 2nd quarter. State Street Corp now owns 6,109,178 shares of the basic materials company's stock valued at $299,898,000 after purchasing an additional 71,703 shares in the last quarter. Fuller & Thaler Asset Management Inc. lifted its position in shares of Commercial Metals by 14.9% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 4,161,292 shares of the basic materials company's stock worth $191,461,000 after buying an additional 539,309 shares during the last quarter. Franklin Resources Inc. lifted its position in shares of Commercial Metals by 10.0% during the 2nd quarter. Franklin Resources Inc. now owns 3,193,930 shares of the basic materials company's stock worth $156,215,000 after buying an additional 290,256 shares during the last quarter. Victory Capital Management Inc. boosted its stake in Commercial Metals by 27.5% in the first quarter. Victory Capital Management Inc. now owns 3,089,313 shares of the basic materials company's stock valued at $142,139,000 after buying an additional 666,886 shares in the last quarter. Finally, First Trust Advisors LP grew its position in Commercial Metals by 34.1% in the fourth quarter. First Trust Advisors LP now owns 1,754,840 shares of the basic materials company's stock valued at $87,040,000 after acquiring an additional 446,317 shares during the last quarter. 86.90% of the stock is owned by 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.