1,343,738 Shares in Commercial Metals Company $CMC Purchased by Bank of America Corp DE

Key Points

• Bank of America acquired 1.34 million shares of Commercial Metals, valued at approximately $84.3 million and representing about 1.21% of the company. Institutional investors collectively own 86.9% of CMC.
• Analysts maintain a generally positive outlook, with 10 Buy ratings and five Holds; the consensus rating is “Moderate Buy,” with an average price target of $81.64.
• Commercial Metals reported quarterly earnings of $1.73 per share and revenue of $2.48 billion, while also declaring a $0.20 quarterly dividend and authorizing a $600 million share repurchase program.

Bank of America Corp DE bought a new stake in Commercial Metals Company (NYSE:CMC - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 1,343,738 shares of the basic materials company's stock, valued at approximately $84,320,000. Bank of America Corp DE owned about 1.21% of Commercial Metals at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Freestone Grove Partners LP acquired a new stake in shares of Commercial Metals during the second quarter worth $1,850,000. Gallagher Fiduciary Advisors LLC acquired a new stake in Commercial Metals in the 2nd quarter worth about $967,000. Man Group plc acquired a new stake in Commercial Metals in the 2nd quarter worth about $3,286,000. Jupiter Topco LLC acquired a new stake in Commercial Metals in the 2nd quarter worth about $36,800,000. Finally, Hsbc Holdings PLC purchased a new stake in Commercial Metals in the 2nd quarter valued at about $662,000. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently commented on CMC shares. Bank of America dropped their price target on shares of Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Zacks Research upgraded shares of Commercial Metals from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Citigroup lowered their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Wells Fargo & Company upped their price objective on Commercial Metals from $77.00 to $80.00 and gave the stock an "equal weight" rating in a report on Friday, June 26th. Finally, JPMorgan Chase & Co. cut their target price on Commercial Metals from $86.00 to $83.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 9th. Ten equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $81.64.

Commercial Metals Price Performance

Commercial Metals stock opened at $64.53 on Friday. The firm has a fifty day moving average of $68.70 and a 200-day moving average of $68.29. Commercial Metals Company has a 52-week low of $53.08 and a 52-week high of $84.87. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73. The firm has a market capitalization of $7.14 billion, a P/E ratio of 12.15, a PEG ratio of 0.34 and a beta of 1.52.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings data on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, beating the consensus estimate of $1.70 by $0.03. The company had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.40 billion. Commercial Metals had a return on equity of 15.69% and a net margin of 6.72%.The firm's revenue was up 22.9% compared to the same quarter last year. During the same period last year, the company posted $0.74 earnings per share. As a group, analysts predict that Commercial Metals Company will post 6.62 EPS for the current year.

Commercial Metals Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were issued a $0.20 dividend. The ex-dividend date was Monday, July 6th. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. Commercial Metals's payout ratio is currently 15.07%.

Commercial Metals announced that its board has authorized a stock buyback 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 reacquire up to 7.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Transactions at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt purchased 8,230 shares of the business's stock in a transaction that occurred on Friday, July 10th. The shares were acquired at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the completion of the purchase, the chief executive officer owned 181,522 shares in the company, valued at $11,127,298.60. The trade was a 4.75% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John R. Mcpherson bought 1,390 shares of the business's stock in a transaction on Thursday, August 13th. The stock was acquired at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the transaction, the director owned 21,927 shares in the company, valued at $1,576,989.84. This represents a 6.77% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.62% of the company's stock.

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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