949,359 Shares in Commercial Metals Company $CMC Purchased by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon purchased 949,359 shares of Commercial Metals, worth approximately $59.6 million, giving it a 0.86% stake. Institutional investors and hedge funds collectively own 86.9% of CMC.
• Commercial Metals exceeded quarterly expectations, reporting $1.73 in EPS and $2.48 billion in revenue, with revenue up 22.9% year over year. Analysts expect $6.64 in EPS for the current fiscal year.
• The company maintains a $0.20 quarterly dividend and authorized a $600 million share-repurchase program covering up to 7.5% of outstanding shares. Analysts have a “Moderate Buy” consensus rating and an average price target of $81.18.

Bank of New York Mellon Corp 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 949,359 shares of the basic materials company's stock, valued at approximately $59,572,000. Bank of New York Mellon Corp owned 0.86% of Commercial Metals at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of CMC. State Street Corp boosted its stake in shares of Commercial Metals by 1.5% in the fourth quarter. State Street Corp now owns 6,361,477 shares of the basic materials company's stock valued at $440,341,000 after purchasing an additional 91,104 shares during the period. Boston Partners increased its stake in Commercial Metals by 1.9% during the 3rd quarter. Boston Partners now owns 3,641,930 shares of the basic materials company's stock worth $208,629,000 after buying an additional 67,139 shares during the period. Geode Capital Management LLC increased its stake in Commercial Metals by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company's stock worth $202,626,000 after buying an additional 86,749 shares during the period. Invesco Ltd. lifted its holdings in Commercial Metals by 4.8% during the 3rd quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company's stock worth $95,144,000 after buying an additional 76,365 shares in the last quarter. Finally, Bank of America Corp DE lifted its holdings in Commercial Metals by 87.4% during the 1st quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company's stock worth $100,205,000 after buying an additional 760,985 shares in the last quarter. 86.90% of the stock is owned by institutional investors and hedge funds.

Commercial Metals Price Performance

Commercial Metals stock opened at $68.35 on Thursday. The stock has a market cap of $7.56 billion, a P/E ratio of 12.87, a price-to-earnings-growth ratio of 0.38 and a beta of 1.52. The company has a fifty day simple moving average of $68.19 and a 200-day simple moving average of $69.51. Commercial Metals Company has a 12-month low of $53.08 and a 12-month high of $84.87. The company has a current ratio of 2.33, a quick ratio of 1.54 and a debt-to-equity ratio of 0.73.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, topping analysts' consensus estimates of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter in the previous year, the firm posted $0.74 earnings per share. The company's revenue was up 22.9% compared to the same quarter last year. Equities analysts expect that Commercial Metals Company will post 6.64 EPS for the current fiscal year.

Commercial Metals Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders 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 dividend yield of 1.2%. Commercial Metals's dividend payout ratio is presently 15.07%.

Commercial Metals declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the basic materials company to buy up to 7.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

CMC has been the subject of several research reports. Morgan Stanley boosted their price target on shares of Commercial Metals from $83.00 to $88.00 and gave the stock an "overweight" rating in a research note on Monday, June 22nd. Deutsche Bank Aktiengesellschaft upgraded Commercial Metals to a "buy" rating in a report on Friday, May 22nd. Citigroup lowered their target price on Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Barclays upped their price target on Commercial Metals from $75.00 to $80.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. Finally, Wells Fargo & Company increased their price target 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. Ten investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Commercial Metals currently has a consensus rating of "Moderate Buy" and an average price target of $81.18.

Insider Transactions at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt bought 8,230 shares of the business's stock in a transaction dated Friday, July 10th. The shares were acquired at an average price of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer owned 181,522 shares of the company's stock, valued at approximately $11,127,298.60. The trade was a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director John R. Mcpherson bought 1,390 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average price of $71.92 per share, with a total value of $99,968.80. Following the purchase, the director owned 21,927 shares of the company's stock, valued at $1,576,989.84. The trade was a 6.77% 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 Company 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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