Commercial Metals Company (NYSE:CMC) Stock Has Average Price Target of $78.73

Key Points

• Analysts’ consensus is “Moderate Buy”: Of 15 analysts covering Commercial Metals, 10 rate it a buy, four a hold and one a sell; the average 12-month price target is $78.73.
• Quarterly results topped expectations: The company reported EPS of $2.09 versus estimates of $1.95 and revenue of $2.66 billion, up 25.7% year over year.
• Capital returns include buybacks and dividends: CMC authorized up to $600 million in share repurchases and pays an annualized dividend of $0.80 per share, a 1.2% yield.

Shares of Commercial Metals Company (NYSE:CMC - Get Free Report) have received an average rating of "Moderate Buy" from the fifteen research firms that are presently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and ten have given a buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $78.73.

A number of equities research analysts have weighed in on CMC shares. BMO Capital Markets cut their target price on Commercial Metals from $75.00 to $73.00 and set a "market perform" rating for the company in a research report on Monday, October 19th. Morgan Stanley lowered their price target on Commercial Metals from $88.00 to $84.00 and set an "overweight" rating on the stock in a research report on Monday, October 19th. Wall Street Zen cut Commercial Metals from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Weiss Ratings raised Commercial Metals from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 16th. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $85.00 price objective on shares of Commercial Metals in a report on Thursday, August 6th.

Commercial Metals Stock Up 0.8%

CMC stock opened at $64.77 on Thursday. Commercial Metals has a 52 week low of $57.01 and a 52 week high of $84.87. The company has a market capitalization of $7.12 billion, a price-to-earnings ratio of 11.03, a price-to-earnings-growth ratio of 3.95 and a beta of 1.55. The firm's 50-day moving average is $65.00 and its two-hundred day moving average is $68.76. The company has a current ratio of 2.34, a quick ratio of 1.66 and a debt-to-equity ratio of 0.71.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings results on Thursday, October 15th. The basic materials company reported $2.09 earnings per share for the quarter, topping analysts' consensus estimates of $1.95 by $0.14. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.56 billion. During the same period in the prior year, the business posted $1.37 EPS. The business's revenue for the quarter was up 25.7% compared to the same quarter last year. On average, analysts forecast that Commercial Metals will post 6.69 earnings per share for the current fiscal year.

Commercial Metals declared that its board has initiated a share repurchase program on Wednesday, August 5th that permits the company to buy back $600 million in shares. This buyback authorization permits the basic materials company to buy up to 7.5% of its shares through open market purchases. Share buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Commercial Metals Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 11th. Investors of record on Wednesday, October 28th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Wednesday, October 28th. Commercial Metals's payout ratio is presently 13.63%.

Institutional Investors Weigh In On Commercial Metals

A number of institutional investors and hedge funds have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Commercial Metals in the 2nd quarter worth approximately $2,354,000. Engineers Gate Manager LP acquired a new stake in Commercial Metals during the second quarter valued at approximately $2,620,000. California Public Employees Retirement System boosted its holdings in Commercial Metals by 11.5% during the first quarter. California Public Employees Retirement System now owns 277,877 shares of the basic materials company's stock worth $17,070,000 after buying an additional 28,693 shares in the last quarter. State of Alaska Department of Revenue boosted its holdings in Commercial Metals by 78.6% during the third quarter. State of Alaska Department of Revenue now owns 28,095 shares of the basic materials company's stock worth $1,743,000 after buying an additional 12,368 shares in the last quarter. Finally, Bank of America Corp DE bought a new stake in Commercial Metals during the second quarter worth approximately $84,320,000. 86.90% of the stock is owned by institutional investors and hedge funds.

Commercial Metals Company Profile

Commercial Metals Company (CMC) is a metals recycling, manufacturing and construction-services company. Its operations span the collection and processing of ferrous and nonferrous scrap, which can be used as raw material for steelmaking, and the production of steel and other metal products. CMC manufactures products including reinforcing bar, merchant bar, wire rod and other steel products used in construction and industrial applications. The company also provides construction-related products and services, including steel fabrication and engineered solutions for infrastructure projects.

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