Hsbc Holdings PLC Has $662,000 Stock Holdings in Commercial Metals Company $CMC

Key Points

• Hsbc Holdings PLC cut its Commercial Metals position by 91.6% in the second quarter, selling 114,520 shares and retaining 10,556 shares valued at approximately $662,000.
• Commercial Metals maintains strong institutional backing, with institutions owning 86.9% of shares. Analysts give the stock a consensus “Moderate Buy” rating and an average price target of $81.64.
• The company exceeded quarterly earnings expectations, reporting $1.73 in EPS and $2.48 billion in revenue, while also maintaining a $0.20 quarterly dividend and authorizing a $600 million share-repurchase program.

Hsbc Holdings PLC reduced its position in Commercial Metals Company (NYSE:CMC - Free Report) by 91.6% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 10,556 shares of the basic materials company's stock after selling 114,520 shares during the period. Hsbc Holdings PLC's holdings in Commercial Metals were worth $662,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in CMC. Wellington Management Group LLP lifted its stake in shares of Commercial Metals by 17.8% in the 2nd quarter. Wellington Management Group LLP now owns 435,750 shares of the basic materials company's stock valued at $27,343,000 after purchasing an additional 65,863 shares during the period. Archer Investment Corp acquired a new position in Commercial Metals in the second quarter valued at about $90,000. Beacon Pointe Advisors LLC acquired a new position in Commercial Metals in the second quarter valued at about $1,138,000. Empowered Funds LLC bought a new position in Commercial Metals during the second quarter worth about $769,000. Finally, United Capital Financial Advisors LLC acquired a new position in shares of Commercial Metals during the 2nd quarter worth about $216,000. 86.90% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. JPMorgan Chase & Co. decreased their price target on shares of Commercial Metals from $86.00 to $83.00 and set an "overweight" rating for the company in a report on Wednesday, September 9th. Deutsche Bank Aktiengesellschaft upgraded Commercial Metals to a "buy" rating in a report on Friday, May 22nd. Weiss Ratings upgraded Commercial Metals from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday. BMO Capital Markets raised their price target on Commercial Metals from $77.00 to $80.00 and gave the stock a "market perform" rating in a research report on Thursday, August 6th. Finally, Bank of America decreased their price objective on Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Ten investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $81.64.

Commercial Metals Stock Down 3.2%

NYSE:CMC opened at $64.99 on Tuesday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. Commercial Metals Company has a 52-week low of $53.08 and a 52-week high of $84.87. The company has a market cap of $7.19 billion, a PE ratio of 12.24, a PEG ratio of 0.35 and a beta of 1.52. The stock has a 50-day simple moving average of $68.37 and a 200 day simple moving average of $68.49.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings data 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 analyst estimates of $2.40 billion. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The firm's revenue for the quarter was up 22.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.74 earnings per share. On average, sell-side analysts expect that Commercial Metals Company will post 6.62 EPS for the current fiscal year.

Commercial Metals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th were paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Monday, July 6th. Commercial Metals's dividend payout ratio is currently 15.07%.

Commercial Metals announced that its Board of Directors has approved a share repurchase plan on Wednesday, August 5th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the basic materials company to buy up to 7.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Commercial Metals

In related news, CEO Peter Matt acquired 8,230 shares of the firm's stock in a transaction dated Friday, July 10th. The stock was bought at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the acquisition, the chief executive officer directly owned 181,522 shares of the company's stock, valued at approximately $11,127,298.60. The trade was a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John McPherson bought 1,390 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the transaction, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.62% of the company's stock.

Commercial Metals 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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