Deutsche Bank AG Buys Shares of 133,346 Commercial Metals Company $CMC

Key Points

• Deutsche Bank acquired 133,346 shares of Commercial Metals Company during the second quarter, valued at approximately $8.4 million. Institutional investors collectively own 86.9% of CMC’s outstanding shares.
• Commercial Metals exceeded quarterly expectations, reporting $1.73 in EPS and $2.48 billion in revenue, up 22.9% year over year. The company also authorized a $600 million share repurchase program and maintains a $0.20 quarterly dividend.
• Analysts remain moderately bullish, with ten Buy ratings and five Holds and an average price target of $81.18, compared with the stock’s reported $66.36 opening price.

Deutsche Bank AG purchased a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 133,346 shares of the basic materials company's stock, valued at approximately $8,367,000. Deutsche Bank AG owned about 0.12% of Commercial Metals at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Global Retirement Partners LLC acquired a new position in shares of Commercial Metals in the second quarter valued at approximately $34,000. Bank of New York Mellon Corp acquired a new stake in Commercial Metals during the second quarter worth approximately $59,572,000. State of Wyoming acquired a new stake in Commercial Metals during the second quarter worth approximately $125,000. GSA Capital Partners LLP purchased a new stake in Commercial Metals in the 2nd quarter worth approximately $2,096,000. Finally, USA Financial Formulas grew its stake in Commercial Metals by 67.6% in the 1st quarter. USA Financial Formulas now owns 496 shares of the basic materials company's stock worth $30,000 after acquiring an additional 200 shares during the period. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Commercial Metals Stock Performance

Shares of CMC stock opened at $66.36 on Monday. Commercial Metals Company has a one year low of $53.08 and a one year high of $84.87. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. The company has a 50 day moving average price of $68.73 and a 200 day moving average price of $69.83. The firm has a market capitalization of $7.34 billion, a price-to-earnings ratio of 12.50, a price-to-earnings-growth ratio of 0.38 and a beta of 1.52.

Commercial Metals (NYSE:CMC - Get Free Report) last posted 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 for the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter last year, the firm posted $0.74 earnings per share. Commercial Metals's revenue was up 22.9% on a year-over-year basis. Sell-side analysts anticipate that Commercial Metals Company will post 6.64 EPS for the current year.

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

Commercial Metals Dividend Announcement

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

Insider Buying and Selling at Commercial Metals

In other news, Director John R. Mcpherson bought 1,390 shares of Commercial Metals stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the acquisition, the director owned 21,927 shares of the company's stock, valued at $1,576,989.84. The trade was a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Peter R. Matt purchased 8,230 shares of the stock in a transaction on Friday, July 10th. The shares were purchased at an average cost of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer owned 181,522 shares of the company's stock, valued at $11,127,298.60. This trade represents a 4.75% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.62% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CMC. BMO Capital Markets increased their price target on Commercial Metals from $77.00 to $80.00 and gave the stock a "market perform" rating in a research note on Thursday, August 6th. Citigroup decreased their price objective on Commercial Metals from $85.00 to $75.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Weiss Ratings raised Commercial Metals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 30th. The Goldman Sachs Group reiterated a "buy" rating and issued a $85.00 target price on shares of Commercial Metals in a research note on Thursday, August 6th. Finally, Bank of America reduced their target price on Commercial Metals from $84.00 to $78.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Ten research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $81.18.

Commercial Metals Company 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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