Commercial Metals Company (NYSE:CMC) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Commercial Metals has a “Moderate Buy” consensus rating from 15 analysts, with 10 buys and 5 holds. The average 12-month price target is $81.64, implying upside from the reported $65.01 share price.
• The company exceeded quarterly expectations, reporting $1.73 in EPS versus the $1.70 estimate and $2.48 billion in revenue, up 22.9% year over year. Its board also authorized a $600 million share-repurchase program, covering up to 7.5% of outstanding shares.
• Insiders recently increased their holdings through purchases by the CEO and a director, while institutional investors own 86.9% of the stock.

Commercial Metals Company (NYSE:CMC - Get Free Report) has earned a consensus rating of "Moderate Buy" from the fifteen analysts that are currently covering the stock, Marketbeat.com reports. Five research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $81.6364.

Several equities analysts recently issued reports on CMC shares. Wells Fargo & Company upped their price objective on Commercial Metals from $77.00 to $80.00 and gave the company an "equal weight" rating in a research report on Friday, June 26th. Jefferies Financial Group raised Commercial Metals from a "buy" rating to a "buy" rating in a report on Friday, June 5th. BMO Capital Markets boosted their price target on Commercial Metals from $77.00 to $80.00 and gave the stock a "market perform" rating in a research note on Thursday, August 6th. Morgan Stanley upped their price target on Commercial Metals from $83.00 to $88.00 and gave the company an "overweight" rating in a report on Monday, June 22nd. Finally, Citigroup reduced their price objective on Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a report on Tuesday, July 7th.

Insider Buying and Selling

In related news, CEO Peter Matt acquired 8,230 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were bought at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the completion of the transaction, the chief executive officer directly owned 181,522 shares in the company, valued at approximately $11,127,298.60. This trade represents a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John McPherson bought 1,390 shares of the business's stock in a transaction on Thursday, August 13th. The stock was bought at an average cost of $71.92 per share, with a total value of $99,968.80. Following the transaction, the director owned 21,927 shares in the company, valued at $1,576,989.84. This trade represents a 6.77% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.62% of the stock is owned by corporate insiders.

Institutional Trading of Commercial Metals

A number of hedge funds have recently bought and sold shares of the company. USA Financial Formulas lifted its position in shares of Commercial Metals by 67.6% in the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company's stock valued at $30,000 after acquiring an additional 200 shares in the last quarter. Global Retirement Partners LLC purchased a new stake in shares of Commercial Metals during the second quarter worth about $34,000. Caitong International Asset Management Co. Ltd grew its position in shares of Commercial Metals by 617.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company's stock worth $58,000 after purchasing an additional 716 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Commercial Metals during the 2nd quarter valued at approximately $63,000. Finally, EverSource Wealth Advisors LLC raised its stake in Commercial Metals by 105.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,222 shares of the basic materials company's stock valued at $75,000 after purchasing an additional 626 shares during the period. Hedge funds and other institutional investors own 86.90% of the company's stock.

Commercial Metals Stock Performance

Shares of Commercial Metals stock opened at $65.01 on Wednesday. The stock has a market cap of $7.19 billion, a price-to-earnings ratio of 12.24, a PEG ratio of 0.34 and a beta of 1.52. The firm's 50-day moving average is $68.69 and its 200 day moving average is $68.16. Commercial Metals has a 1 year low of $53.08 and a 1 year high of $84.87. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The business had revenue of $2.48 billion during the quarter, compared to analysts' expectations of $2.40 billion. During the same period in the previous year, the company earned $0.74 earnings per share. The business's revenue for the quarter was up 22.9% compared to the same quarter last year. Sell-side analysts anticipate that Commercial Metals will post 6.62 EPS for the current fiscal year.

Commercial Metals announced that its Board of Directors has approved a share repurchase program on Wednesday, August 5th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the basic materials company to repurchase up to 7.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

About Commercial Metals

Commercial Metals Company NYSE: CMC is a steel and metals manufacturing and recycling company headquartered in Irving, Texas. Founded in 1915, the company began as a scrap-metal business and has grown into an integrated producer, recycler and fabricator serving construction and industrial markets.

CMC manufactures and distributes a range of steel products, including reinforcing bar, merchant bar, wire rod, structural products, wire mesh and other products used in concrete construction and infrastructure projects.

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