Beacon Pointe Advisors LLC Invests $1.14 Million in Commercial Metals Company $CMC

Key Points

• Beacon Pointe Advisors acquired 18,129 shares of Commercial Metals valued at approximately $1.14 million, while institutional investors collectively own 86.9% of the company.
• Analysts maintain a positive outlook, with a consensus “Moderate Buy” rating and average price target of $81.18 versus CMC’s reported share price of $67.55.
• Commercial Metals beat quarterly earnings expectations, announced a $600 million share-repurchase program, and declared a $0.20 quarterly dividend yielding approximately 1.2%.

Beacon Pointe Advisors LLC bought a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 18,129 shares of the basic materials company's stock, valued at approximately $1,138,000.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. USA Financial Formulas grew its stake in Commercial Metals by 67.6% during the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company's stock worth $30,000 after purchasing an additional 200 shares during the period. Global Retirement Partners LLC bought a new stake in Commercial Metals in the second quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd lifted its stake in 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 valued at $58,000 after buying an additional 716 shares during the period. Los Angeles Capital Management LLC acquired a new position in Commercial Metals in the fourth quarter valued at approximately $59,000. Finally, Colonial Trust Co SC bought a new position in shares of Commercial Metals during the 4th quarter worth approximately $81,000. Institutional investors and hedge funds own 86.90% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Bank of America reduced their price objective on shares of Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. BNP Paribas Exane raised shares of Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 target price on the stock in a research note on Wednesday, July 8th. Morgan Stanley raised their price target on shares of Commercial Metals from $83.00 to $88.00 and gave the stock an "overweight" rating in a report on Monday, June 22nd. Deutsche Bank Aktiengesellschaft raised shares of Commercial Metals to a "buy" rating in a research note on Friday, May 22nd. Finally, Citigroup dropped their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $81.18.

Commercial Metals Price Performance

Shares of CMC opened at $67.55 on Monday. The business's fifty day moving average is $68.02 and its 200 day moving average is $69.30. Commercial Metals Company has a 12-month low of $53.08 and a 12-month high of $84.87. 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 stock has a market cap of $7.47 billion, a P/E ratio of 12.72, a P/E/G ratio of 0.39 and a beta of 1.52.

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

Commercial Metals Dividend Announcement

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

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

Insider Activity

In other Commercial Metals news, CEO Peter R. Matt bought 8,230 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were bought at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the acquisition, the chief executive officer directly 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 position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John R. Mcpherson purchased 1,390 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the transaction, the director owned 21,927 shares in the company, valued at $1,576,989.84. This represents a 6.77% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 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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