American Century Companies Inc. Grows Stake in Commercial Metals Company $CMC

Key Points

• American Century Companies Inc. increased its stake in Commercial Metals Company by 86.1%, acquiring an additional 734,265 shares during the first quarter, bringing its total ownership to 1,587,259 shares valued at approximately $73 million.
• Commercial Metals recently reported quarterly earnings of $0.74 per share, missing analysts' expectations of $0.85, while also experiencing a 2.8% revenue decline compared to the previous year.
• The company's stock has a market capitalization of $6.36 billion, with a current price of $56.86 and a dividend yield of 1.3%, reflecting a quarterly dividend of $0.18 per share.

American Century Companies Inc. raised its holdings in shares of Commercial Metals Company (NYSE:CMC - Free Report) by 86.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,587,259 shares of the basic materials company's stock after acquiring an additional 734,265 shares during the quarter. American Century Companies Inc. owned approximately 1.40% of Commercial Metals worth $73,030,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Wealth Enhancement Advisory Services LLC raised its holdings in Commercial Metals by 12.4% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 25,853 shares of the basic materials company's stock valued at $1,189,000 after acquiring an additional 2,846 shares during the period. GAMMA Investing LLC raised its holdings in Commercial Metals by 25.6% during the first quarter. GAMMA Investing LLC now owns 3,280 shares of the basic materials company's stock valued at $151,000 after acquiring an additional 669 shares during the period. SG Americas Securities LLC raised its holdings in Commercial Metals by 460.1% during the first quarter. SG Americas Securities LLC now owns 12,383 shares of the basic materials company's stock valued at $570,000 after acquiring an additional 10,172 shares during the period. State of Alaska Department of Revenue raised its holdings in Commercial Metals by 2.5% during the first quarter. State of Alaska Department of Revenue now owns 13,316 shares of the basic materials company's stock valued at $612,000 after acquiring an additional 325 shares during the period. Finally, Envestnet Asset Management Inc. raised its holdings in Commercial Metals by 6.3% during the first quarter. Envestnet Asset Management Inc. now owns 385,527 shares of the basic materials company's stock valued at $17,738,000 after acquiring an additional 22,682 shares during the period. 86.90% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have commented on CMC. Wells Fargo & Company raised Commercial Metals to a "strong-buy" rating in a report on Thursday, August 14th. BMO Capital Markets restated a "market perform" rating and set a $55.00 price objective (down previously from $57.00) on shares of Commercial Metals in a research report on Tuesday, June 24th. Morgan Stanley set a $57.50 price objective on Commercial Metals in a research report on Wednesday, June 25th. JPMorgan Chase & Co. raised their price objective on Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. Finally, Wolfe Research upgraded Commercial Metals from a "peer perform" rating to an "outperform" rating in a research report on Friday, June 20th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $58.81.

Commercial Metals Price Performance

Shares of Commercial Metals stock traded up $2.6420 during trading on Friday, reaching $58.9520. 1,097,630 shares of the stock traded hands, compared to its average volume of 874,668. The company has a market capitalization of $6.60 billion, a price-to-earnings ratio of 190.17, a P/E/G ratio of 2.72 and a beta of 1.28. The business has a fifty day simple moving average of $52.44 and a two-hundred day simple moving average of $48.66. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.86 and a quick ratio of 2.00. Commercial Metals Company has a 52-week low of $37.92 and a 52-week high of $64.53.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings results on Monday, June 23rd. The basic materials company reported $0.74 EPS for the quarter, missing the consensus estimate of $0.85 by ($0.11). The company had revenue of $2.02 billion during the quarter, compared to analysts' expectations of $2.04 billion. Commercial Metals had a return on equity of 7.45% and a net margin of 0.48%.The company's revenue was down 2.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.02 EPS. Sell-side analysts expect that Commercial Metals Company will post 3.09 EPS for the current year.

Commercial Metals Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 9th. Investors of record on Monday, June 30th were given a $0.18 dividend. The ex-dividend date was Monday, June 30th. This represents a $0.72 annualized dividend and a yield of 1.2%. Commercial Metals's dividend payout ratio (DPR) is currently 232.26%.

Commercial Metals Profile

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.