Bank of America Corp DE Purchases 760,985 Shares of Commercial Metals Company $CMC

Key Points

• Bank of America significantly increased its Commercial Metals stake by purchasing 760,985 shares, raising its position 87.4% to 1.63 million shares worth approximately $100.2 million. Institutional investors collectively own 86.9% of the company.
• Commercial Metals exceeded quarterly expectations, reporting $1.73 in EPS versus the $1.70 consensus and $2.48 billion in revenue, up 22.9% year over year. The company also authorized a $600 million share-repurchase program covering up to 7.5% of outstanding shares and maintains a $0.20 quarterly dividend.
• Analyst sentiment remains positive but measured: the stock has a “Moderate Buy” consensus rating, with 10 Buy and five Hold ratings and an average price target of $81.18, compared with a recent share price of $75.17.

Bank of America Corp DE raised its position in Commercial Metals Company (NYSE:CMC - Free Report) by 87.4% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,631,213 shares of the basic materials company's stock after purchasing an additional 760,985 shares during the period. Bank of America Corp DE owned 1.47% of Commercial Metals worth $100,205,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the company. Global Retirement Partners LLC increased its stake in Commercial Metals by 110.7% in the 4th quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company's stock worth $40,000 after acquiring an additional 301 shares during the last quarter. V Square Quantitative Management LLC bought a new position in shares of Commercial Metals in the fourth quarter worth approximately $54,000. Caitong International Asset Management Co. Ltd increased its position in shares of Commercial Metals by 617.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company's stock worth $58,000 after purchasing an additional 716 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in Commercial Metals in the fourth quarter valued at approximately $59,000. Finally, EverSource Wealth Advisors LLC raised its stake in Commercial Metals by 105.0% in the first quarter. EverSource Wealth Advisors LLC now owns 1,222 shares of the basic materials company's stock valued at $75,000 after purchasing an additional 626 shares in the last quarter. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Commercial Metals Stock Up 2.0%

Shares of NYSE CMC opened at $75.17 on Friday. 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 Company has a 12 month low of $52.74 and a 12 month high of $84.87. The firm has a market capitalization of $8.32 billion, a PE ratio of 14.16, a price-to-earnings-growth ratio of 0.42 and a beta of 1.52. The firm has a fifty day simple moving average of $69.80 and a two-hundred day simple moving average of $70.32.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (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 analysts' expectations of $2.40 billion. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. Commercial Metals's quarterly revenue was up 22.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.74 earnings per share. Equities analysts expect that Commercial Metals Company will post 6.64 earnings per share for the current year.

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

Commercial Metals Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, July 6th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Monday, July 6th. Commercial Metals's dividend payout ratio is presently 15.07%.

Insider Transactions at Commercial Metals

In other news, CEO Peter R. Matt acquired 8,230 shares of the stock in a transaction on Friday, July 10th. The stock was acquired at an average price of $61.30 per share, with a total value of $504,499.00. Following the completion of the transaction, 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 position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.62% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Zacks Research upgraded shares of Commercial Metals from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Barclays lifted their price objective on Commercial Metals from $75.00 to $80.00 and gave the stock an "equal weight" rating in a report on Friday. 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. Deutsche Bank Aktiengesellschaft upgraded Commercial Metals to a "buy" rating in a research report on Friday, May 22nd. Finally, Wells Fargo & Company lifted their price target on Commercial Metals from $77.00 to $80.00 and gave the stock an "equal weight" rating in a research note on Friday, June 26th. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $81.18.

Commercial Metals News Summary

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

• Positive Sentiment: Share buyback supports the stock: Commercial Metals authorized a program to repurchase up to $600 million of its outstanding shares, representing as much as 7.5% of the company’s stock. The authorization signals management believes the shares are undervalued and could support earnings per share by reducing the share count. Commercial Metals to Repurchase $600 Million in Outstanding Shares
• Positive Sentiment: Zacks raises longer-term EPS estimates: Zacks Research increased its forecasts across several periods, including Q1 2027 EPS to $1.79 from $1.77, FY2027 EPS to $7.13 from $7.08, and FY2028 EPS to $7.32 from $7.27. Estimates for Q4 2027, Q1-Q3 2028 were also raised by $0.01 per share, suggesting slightly improved expectations for future profitability.
• Neutral Sentiment: Analyst target rises, but rating remains cautious: BMO Capital Markets lifted its price target for CMC from $77 to $80 while maintaining a “Market Perform” rating. The higher target offers moderate potential upside, but the unchanged rating indicates BMO does not expect substantial outperformance relative to the broader market. BMO Capital Markets Raises Commercial Metals Price Target

About Commercial Metals

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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