Geode Capital Management LLC Grows Holdings in Commercial Metals Company $CMC

Key Points

• Geode Capital Management increased its stake in Commercial Metals by 3.1% in the fourth quarter, bringing its holdings to 2.93 million shares valued at about $202.6 million.
• Commercial Metals reported quarterly earnings of $1.16 per share, missing estimates, but revenue rose 21.5% year over year to $2.13 billion and topped forecasts.
• The company raised its quarterly dividend to $0.20 per share from $0.18, while analysts currently rate the stock Moderate Buy with an average price target of $77.10.

Geode Capital Management LLC grew its holdings in Commercial Metals Company (NYSE:CMC - Free Report) by 3.1% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,926,864 shares of the basic materials company's stock after purchasing an additional 86,749 shares during the period. Geode Capital Management LLC owned about 2.64% of Commercial Metals worth $202,626,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Ashton Thomas Private Wealth LLC increased its stake in Commercial Metals by 3.1% in the fourth quarter. Ashton Thomas Private Wealth LLC now owns 4,904 shares of the basic materials company's stock worth $339,000 after purchasing an additional 149 shares during the period. Quadrant Capital Group LLC increased its stake in Commercial Metals by 2.9% in the third quarter. Quadrant Capital Group LLC now owns 6,626 shares of the basic materials company's stock worth $380,000 after purchasing an additional 188 shares during the period. Captrust Financial Advisors increased its stake in Commercial Metals by 4.4% in the second quarter. Captrust Financial Advisors now owns 4,813 shares of the basic materials company's stock worth $235,000 after purchasing an additional 202 shares during the period. Wealth Enhancement Advisory Services LLC increased its stake in Commercial Metals by 1.1% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 18,543 shares of the basic materials company's stock worth $1,383,000 after purchasing an additional 206 shares during the period. Finally, Flagship Harbor Advisors LLC increased its stake in Commercial Metals by 4.7% in the third quarter. Flagship Harbor Advisors LLC now owns 4,775 shares of the basic materials company's stock worth $274,000 after purchasing an additional 213 shares during the period. Hedge funds and other institutional investors own 86.90% of the company's stock.

Commercial Metals Price Performance

CMC opened at $76.66 on Wednesday. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.38 and a quick ratio of 1.55. The firm has a market capitalization of $8.50 billion, a PE ratio of 17.07, a price-to-earnings-growth ratio of 0.45 and a beta of 1.50. The business's 50-day moving average is $67.56 and its two-hundred day moving average is $69.63. Commercial Metals Company has a 1 year low of $47.06 and a 1 year high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share 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 analyst estimates of $2.10 billion. Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.Commercial Metals's revenue was up 21.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.26 EPS. Research analysts anticipate that Commercial Metals Company will post 6.45 earnings per share for the current fiscal year.

Commercial Metals Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th were issued a $0.20 dividend. This is a boost from Commercial Metals's previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Monday, April 6th. Commercial Metals's dividend payout ratio is 16.04%.

Analysts Set New Price Targets

A number of research firms have weighed in on CMC. Deutsche Bank Aktiengesellschaft upgraded Commercial Metals to a "buy" rating in a research note on Friday, May 22nd. Barclays started coverage on Commercial Metals in a research note on Thursday, May 21st. They set an "equal weight" rating and a $75.00 price target on the stock. UBS Group upgraded Commercial Metals from a "neutral" rating to a "buy" rating and raised their price target for the company from $79.00 to $89.00 in a research note on Wednesday, May 13th. JPMorgan Chase & Co. cut their price target on Commercial Metals from $83.00 to $78.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 14th. Finally, The Goldman Sachs Group started coverage on Commercial Metals in a research note on Wednesday, April 1st. They set a "neutral" rating and a $74.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $77.10.

About Commercial Metals

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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