Engineers Gate Manager LP Makes New Investment in Commercial Metals Company $CMC

Key Points

• Engineers Gate Manager LP acquired 41,746 shares of Commercial Metals Company during the second quarter, valued at approximately $2.62 million. Institutional investors and hedge funds collectively own 86.9% of CMC.
• CMC reported quarterly earnings of $1.73 per share, exceeding estimates of $1.70, while revenue rose 22.9% year over year to $2.48 billion.
• The company authorized a $600 million share-repurchase program covering up to 7.5% of outstanding shares and maintains a quarterly dividend of $0.20 per share, representing a 1.2% yield.

Engineers Gate Manager LP acquired a new stake in Commercial Metals Company (NYSE:CMC - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 41,746 shares of the basic materials company's stock, valued at approximately $2,620,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. USA Financial Formulas increased its position in Commercial Metals by 67.6% during the 1st quarter. USA Financial Formulas now owns 496 shares of the basic materials company's stock worth $30,000 after purchasing an additional 200 shares in the last quarter. Global Retirement Partners LLC acquired a new position in Commercial Metals during the second quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd lifted its position in Commercial Metals by 617.2% during 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 in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in Commercial Metals during the second quarter worth approximately $63,000. Finally, EverSource Wealth Advisors LLC grew its stake in Commercial Metals by 105.0% during the first quarter. EverSource Wealth Advisors LLC now owns 1,222 shares of the basic materials company's stock worth $75,000 after buying an additional 626 shares during the period. 86.90% of the stock is owned by institutional investors and hedge funds.

Commercial Metals Stock Down 3.2%

Shares of NYSE:CMC opened at $64.99 on Tuesday. The company has a market capitalization of $7.19 billion, a price-to-earnings ratio of 12.24, a price-to-earnings-growth ratio of 0.35 and a beta of 1.52. The company has a 50 day moving average of $68.37 and a two-hundred 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. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its earnings results on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, topping analysts' consensus estimates of $1.70 by $0.03. The business 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%. The business's revenue for the quarter was up 22.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.74 earnings per share. As a group, analysts forecast that Commercial Metals Company will post 6.62 earnings per share for the current fiscal year.

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

Commercial Metals Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. 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 Commercial Metals news, CEO Peter R. Matt bought 8,230 shares of the company's stock in a transaction dated Friday, July 10th. The shares were acquired at an average cost 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 in the company, valued at $11,127,298.60. The trade was a 4.75% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John R. Mcpherson purchased 1,390 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the purchase, the director owned 21,927 shares of the company's stock, valued at approximately $1,576,989.84. This represents a 6.77% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.62% of the company's stock.

Analyst Ratings Changes

CMC has been the subject of several recent research reports. Morgan Stanley increased their price objective on shares of Commercial Metals from $83.00 to $88.00 and gave the stock an "overweight" rating in a research report on Monday, June 22nd. Citigroup decreased their price target on shares of Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a research report on Tuesday, July 7th. Weiss Ratings upgraded Commercial Metals from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday. Barclays increased their price target on Commercial Metals from $75.00 to $80.00 and gave the company an "equal weight" rating in a report on Friday, August 7th. Finally, BMO Capital Markets boosted their price objective 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. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Commercial Metals currently has an average rating of "Moderate Buy" and an average price target of $81.64.

About Commercial Metals

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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