599,871 Shares in Commercial Metals Company $CMC Bought by Encompass Capital Advisors LLC

Key Points

• Encompass Capital Advisors opened a new position in Commercial Metals, buying 599,871 shares valued at about $41.5 million. The stake represents 1.7% of the fund’s portfolio and about 0.54% of CMC.
• Analyst sentiment is mixed but leans positive: Commercial Metals currently carries a “Moderate Buy” consensus with an average price target of $77.10. Recent firm-level moves included a Deutsche Bank upgrade to Buy, while Goldman Sachs and Barclays started coverage at neutral/equal weight.
• The company reported Q3 revenue growth of 21.5% year over year to $2.13 billion, though earnings per share of $1.16 missed estimates. Commercial Metals also raised its quarterly dividend to $0.20 per share, or $0.80 annualized.

Encompass Capital Advisors LLC acquired a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 599,871 shares of the basic materials company's stock, valued at approximately $41,523,000. Commercial Metals comprises 1.7% of Encompass Capital Advisors LLC's investment portfolio, making the stock its 16th biggest position. Encompass Capital Advisors LLC owned 0.54% of Commercial Metals at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Rothschild Investment LLC lifted its stake in Commercial Metals by 169.6% during the third quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company's stock worth $29,000 after purchasing an additional 324 shares during the last quarter. Global Retirement Partners LLC lifted its stake in Commercial Metals by 110.7% during the fourth quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company's stock worth $40,000 after purchasing an additional 301 shares during the last quarter. V Square Quantitative Management LLC bought a new position in Commercial Metals during the fourth quarter worth $54,000. Los Angeles Capital Management LLC bought a new position in Commercial Metals during the fourth quarter worth $59,000. Finally, Colonial Trust Co SC bought a new position in Commercial Metals during the fourth quarter worth $81,000. 86.90% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently issued reports on CMC. Wall Street Zen cut Commercial Metals from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 4th. The Goldman Sachs Group began coverage on Commercial Metals in a research note on Wednesday, April 1st. They set a "neutral" rating and a $74.00 price objective on the stock. Barclays began coverage on Commercial Metals in a research note on Thursday, May 21st. They set an "equal weight" rating and a $75.00 price objective on the stock. Deutsche Bank Aktiengesellschaft upgraded Commercial Metals to a "buy" rating in a research note on Friday, May 22nd. Finally, Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $77.00 target price on shares of Commercial Metals in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Commercial Metals presently has a consensus rating of "Moderate Buy" and an average target price of $77.10.

Commercial Metals Price Performance

Shares of NYSE CMC opened at $73.28 on Thursday. Commercial Metals Company has a 1-year low of $47.06 and a 1-year high of $84.87. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.38 and a quick ratio of 1.55. The business's fifty day moving average price is $71.05 and its two-hundred day moving average price is $70.96. The firm has a market capitalization of $8.13 billion, a PE ratio of 16.32, a P/E/G ratio of 0.44 and a beta of 1.50.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.12). Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The company had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.10 billion. During the same period in the prior year, the business earned $0.26 earnings per share. Commercial Metals's quarterly revenue was up 21.5% on a year-over-year basis. On average, research analysts expect that Commercial Metals Company will post 6.58 EPS for the current year.

Commercial Metals Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Monday, April 6th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.1%. This is a positive change from Commercial Metals's previous quarterly dividend of $0.18. The ex-dividend date of this dividend was Monday, April 6th. Commercial Metals's dividend payout ratio is 17.82%.

Key Stories Impacting Commercial Metals

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: One Zacks update was mildly constructive, with the firm raising its Q2 2027 EPS estimate to $1.36 from $1.33, suggesting slightly better near-term profitability expectations.
• Neutral Sentiment: Most of the recent changes were small downward tweaks rather than major cuts, so the revisions do not point to a dramatic change in the company’s outlook.
• Negative Sentiment: Zacks Research lowered earnings estimates across several future periods and maintained a Strong Sell rating, a combination that may weigh on sentiment toward Commercial Metals Company NYSE: CMC.

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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