California State Teachers Retirement System Sells 3,638 Shares of Commercial Metals Company $CMC

Key Points

• CalSTRS reduced its Commercial Metals position by 2.7%, selling 3,638 shares and retaining 130,170 shares valued at approximately $8.17 million. Institutional investors collectively own 86.9% of CMC.
• Commercial Metals reported quarterly EPS of $1.73, exceeding estimates of $1.70, while revenue rose 22.9% year over year to $2.48 billion. The company also authorized a $600 million share repurchase program covering up to 7.5% of outstanding shares.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $81.64, compared with the stock’s recent price of $65.14. CMC also pays a quarterly dividend of $0.20 per share, representing a 1.2% annualized yield.

California State Teachers Retirement System decreased its position in Commercial Metals Company (NYSE:CMC - Free Report) by 2.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 130,170 shares of the basic materials company's stock after selling 3,638 shares during the quarter. California State Teachers Retirement System owned approximately 0.12% of Commercial Metals worth $8,168,168 at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. USA Financial Formulas boosted its stake in shares of Commercial Metals by 67.6% during the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company's stock valued at $30,000 after purchasing an additional 200 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in Commercial Metals in the second quarter valued at about $34,000. Caitong International Asset Management Co. Ltd lifted its stake in shares of Commercial Metals by 617.2% during the 4th 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 period. EverSource Wealth Advisors LLC grew its position 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 acquiring an additional 626 shares in the last quarter. Finally, Archer Investment Corp acquired a new stake in shares of Commercial Metals during the 2nd quarter worth approximately $90,000. Hedge funds and other institutional investors own 86.90% of the company's stock.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, Director John McPherson acquired 1,390 shares of the company's stock in a transaction on Thursday, August 13th. The shares were acquired at an average cost of $71.92 per share, with a total value of $99,968.80. Following the completion of the acquisition, the director directly owned 21,927 shares in the company, valued at $1,576,989.84. This trade represents a 6.77% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Peter Matt bought 8,230 shares of the firm's stock in a transaction that occurred on 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 acquisition, 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 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.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Barclays boosted their target price on shares of Commercial Metals from $75.00 to $80.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Bank of America decreased their target price on Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a research note on Thursday, July 9th. Citigroup reduced their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Zacks Research raised shares of Commercial Metals from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Weiss Ratings raised Commercial Metals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday. Ten equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Commercial Metals currently has a consensus rating of "Moderate Buy" and an average price target of $81.64.

Commercial Metals Price Performance

Shares of NYSE:CMC traded up $0.15 on Tuesday, hitting $65.14. The company had a trading volume of 497,988 shares, compared to its average volume of 1,196,745. The company has a current ratio of 2.33, a quick ratio of 1.54 and a debt-to-equity ratio of 0.73. The company has a market cap of $7.21 billion, a PE ratio of 12.27, a PEG ratio of 0.35 and a beta of 1.52. The business has a 50 day moving average of $68.37 and a 200 day moving average of $68.49. Commercial Metals Company has a 52-week low of $53.08 and a 52-week high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share 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 company had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period in the prior year, the business posted $0.74 EPS. The business's revenue for the quarter was up 22.9% compared to the same quarter last year. As a group, equities analysts anticipate that Commercial Metals Company will post 6.62 earnings per share for the current fiscal year.

Commercial Metals announced that its board has approved a share repurchase program on Wednesday, August 5th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the basic materials company to buy up to 7.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

Commercial Metals Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were issued 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 yield of 1.2%. Commercial Metals's payout ratio is presently 15.07%.

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a steel and metals manufacturing and recycling company headquartered in Irving, Texas. Founded in 1915, the company began as a scrap-metal business and has grown into an integrated producer, recycler and fabricator serving construction and industrial markets.

CMC manufactures and distributes a range of steel products, including reinforcing bar, merchant bar, wire rod, structural products, wire mesh and other products used in concrete construction and infrastructure projects.

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