29,479 Shares in Commercial Metals Company $CMC Purchased by Freestone Grove Partners LP

Key Points

• Freestone Grove Partners LP acquired 29,479 shares of Commercial Metals, worth approximately $1.85 million, while institutional investors collectively own 86.9% of the company.
• Commercial Metals reported better-than-expected quarterly results, with EPS of $1.73 versus the $1.70 consensus estimate and revenue of $2.48 billion, up 22.9% year over year.
• The company maintains a $0.20 quarterly dividend and authorized a $600 million stock-repurchase program covering up to 7.5% of outstanding shares; analysts rate the stock “Moderate Buy” with an average price target of $81.18.

Freestone Grove Partners LP bought a new stake in shares of Commercial Metals Company (NYSE:CMC - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 29,479 shares of the basic materials company's stock, valued at approximately $1,850,000.

Several other institutional investors also recently bought and sold shares of CMC. Royal Bank of Canada increased its stake in Commercial Metals by 1.4% during the first quarter. Royal Bank of Canada now owns 90,989 shares of the basic materials company's stock worth $4,186,000 after purchasing an additional 1,219 shares during the period. Amundi grew its holdings in shares of Commercial Metals by 13.3% in the first quarter. Amundi now owns 2,480 shares of the basic materials company's stock valued at $114,000 after purchasing an additional 291 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Commercial Metals by 614.9% in the first quarter. Jones Financial Companies Lllp now owns 11,767 shares of the basic materials company's stock valued at $541,000 after purchasing an additional 10,121 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Commercial Metals by 5.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,033,514 shares of the basic materials company's stock worth $47,552,000 after buying an additional 56,875 shares during the period. Finally, Empowered Funds LLC increased its stake in Commercial Metals by 1.8% during the 1st quarter. Empowered Funds LLC now owns 53,305 shares of the basic materials company's stock worth $2,453,000 after buying an additional 941 shares during the period. 86.90% of the stock is owned by institutional investors and hedge funds.

Commercial Metals Stock Down 1.8%

Shares of Commercial Metals stock opened at $67.55 on Friday. Commercial Metals Company has a 52-week low of $53.08 and a 52-week high of $84.87. The company has a 50 day moving average of $68.02 and a 200 day moving average of $69.40. 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 company has a market capitalization of $7.47 billion, a P/E ratio of 12.72, a P/E/G ratio of 0.40 and a beta of 1.52.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 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 company had revenue of $2.48 billion during the quarter, compared to analysts' expectations of $2.40 billion. During the same quarter in the previous year, the business posted $0.74 EPS. The firm's revenue was up 22.9% on a year-over-year basis. As a group, research analysts forecast that Commercial Metals Company will post 6.64 EPS for the current fiscal year.

Commercial Metals Dividend Announcement

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

Commercial Metals announced that its board has authorized a stock repurchase program on Wednesday, August 5th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Morgan Stanley raised their price target on shares of Commercial Metals from $83.00 to $88.00 and gave the company an "overweight" rating in a research report on Monday, June 22nd. Barclays upped their price objective on Commercial Metals from $75.00 to $80.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Weiss Ratings cut Commercial Metals from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday. Wells Fargo & Company lifted their target price on Commercial Metals from $77.00 to $80.00 and gave the company an "equal weight" rating in a report on Friday, June 26th. Finally, BMO Capital Markets boosted their target price 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. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, Commercial Metals presently has an average rating of "Moderate Buy" and an average target price of $81.18.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, Director John R. Mcpherson bought 1,390 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $71.92 per share, with a total value of $99,968.80. Following the completion of the acquisition, the director directly owned 21,927 shares of the company's stock, valued at $1,576,989.84. This represents a 6.77% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Peter R. Matt purchased 8,230 shares of the business's stock in a transaction on Friday, July 10th. The stock was 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 of the company's stock, valued at $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.62% of the company's stock.

Commercial Metals Profile

Commercial Metals Company NYSE: CMC is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.

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