Commercial Metals Company $CMC Stake Decreased by Drummond Knight Asset Management Pty Ltd

Key Points

• Drummond Knight Asset Management cut its position in Commercial Metals by 20.9%, selling 56,819 shares and now holds 215,166 shares (about 0.19% of the company) valued at roughly $14.9 million, making it the firm's 9th largest holding.
• Several analysts have increased price targets (some to $85) and MarketBeat shows a consensus rating of Moderate Buy with a consensus target of $72 for CMC.
• Commercial Metals missed Q earnings estimates (EPS $1.16 vs. $1.28 expected) but beat on revenue ($2.13B, +21.5% YoY) and raised its quarterly dividend to $0.20 (annualized $0.80, ~1.3% yield).

Drummond Knight Asset Management Pty Ltd decreased its position in shares of Commercial Metals Company (NYSE:CMC - Free Report) by 20.9% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 215,166 shares of the basic materials company's stock after selling 56,819 shares during the period. Commercial Metals comprises about 4.2% of Drummond Knight Asset Management Pty Ltd's holdings, making the stock its 9th largest holding. Drummond Knight Asset Management Pty Ltd owned about 0.19% of Commercial Metals worth $14,894,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. Tema Etfs LLC purchased a new position in shares of Commercial Metals during the 4th quarter worth approximately $3,141,000. Foster & Motley Inc. grew its holdings in shares of Commercial Metals by 30.7% during the 4th quarter. Foster & Motley Inc. now owns 10,453 shares of the basic materials company's stock worth $724,000 after acquiring an additional 2,454 shares during the period. Vaughan Nelson Investment Management L.P. grew its holdings in shares of Commercial Metals by 2.9% during the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 977,385 shares of the basic materials company's stock worth $67,655,000 after acquiring an additional 27,775 shares during the period. Baron Wealth Management LLC grew its holdings in shares of Commercial Metals by 6.7% during the 4th quarter. Baron Wealth Management LLC now owns 3,814 shares of the basic materials company's stock worth $264,000 after acquiring an additional 241 shares during the period. Finally, Exchange Traded Concepts LLC purchased a new position in shares of Commercial Metals during the 4th quarter worth approximately $93,000. Hedge funds and other institutional investors own 86.90% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Morgan Stanley boosted their price target on Commercial Metals from $68.00 to $85.00 and gave the stock an "overweight" rating in a research report on Friday, January 9th. KeyCorp assumed coverage on Commercial Metals in a research report on Wednesday, March 25th. They issued a "sector weight" rating on the stock. Jefferies Financial Group set a $85.00 price target on Commercial Metals and gave the stock a "buy" rating in a research report on Thursday, January 8th. The Goldman Sachs Group assumed coverage on Commercial Metals in a research report on Wednesday, April 1st. They issued a "neutral" rating and a $74.00 price target on the stock. Finally, Citigroup boosted their price target on Commercial Metals from $65.00 to $85.00 and gave the stock a "buy" rating in a research report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $72.00.

Insider Activity at Commercial Metals

In other Commercial Metals news, Director Dennis V. Arriola acquired 2,000 shares of the stock in a transaction that occurred on Tuesday, January 20th. The shares were acquired at an average cost of $74.69 per share, with a total value of $149,380.00. Following the transaction, the director owned 9,238 shares of the company's stock, valued at $689,986.22. The trade was a 27.63% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jennifer J. Durbin sold 25,050 shares of the company's stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total value of $2,003,248.50. Following the completion of the transaction, the insider directly owned 52,880 shares in the company, valued at $4,228,813.60. This trade represents a 32.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.62% of the company's stock.

Commercial Metals Stock Performance

CMC stock opened at $61.29 on Tuesday. The stock has a market capitalization of $6.80 billion, a PE ratio of 13.65, a price-to-earnings-growth ratio of 0.35 and a beta of 1.47. Commercial Metals Company has a 12-month low of $38.02 and a 12-month high of $84.87. The company has a current ratio of 2.38, a quick ratio of 1.55 and a debt-to-equity ratio of 0.75. The stock's 50 day simple moving average is $70.81 and its 200 day simple moving average is $66.74.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings data on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.28 by ($0.12). The business had revenue of $2.13 billion during the quarter, compared to the consensus estimate of $2.10 billion. Commercial Metals had a net margin of 6.02% and a return on equity of 13.54%. The business's revenue was up 21.5% compared to the same quarter last year. During the same period last year, the company posted $0.26 earnings per share. As a group, research analysts forecast that Commercial Metals Company will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Monday, April 6th will be given a $0.20 dividend. This is a boost from Commercial Metals's previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Monday, April 6th. This represents a $0.80 annualized dividend and a yield of 1.3%. Commercial Metals's payout ratio is currently 16.04%.

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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