Jennison Associates LLC Purchases New Stake in Commercial Metals Company $CMC

Key Points

• Jennison Associates LLC initiated a new stake in Commercial Metals during the first quarter, buying 17,233 shares worth about $1.06 million.
• Commercial Metals reported better-than-expected quarterly results, with EPS of $1.73 versus $1.70 expected and revenue of $2.48 billion, up 22.9% year over year.
• The company also paid a quarterly dividend of $0.20 per share and has seen a generally positive analyst outlook, with a consensus rating of Moderate Buy and a target price of $79.45.

Jennison Associates LLC purchased a new position in Commercial Metals Company (NYSE:CMC - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 17,233 shares of the basic materials company's stock, valued at approximately $1,059,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of CMC. California Public Employees Retirement System boosted its holdings in shares of Commercial Metals by 11.5% during the first quarter. California Public Employees Retirement System now owns 277,877 shares of the basic materials company's stock worth $17,070,000 after purchasing an additional 28,693 shares during the period. D.A. Davidson & CO. purchased a new stake in Commercial Metals in the 1st quarter worth approximately $213,000. Bank of New York Mellon Corp grew its position in shares of Commercial Metals by 0.9% in the 1st quarter. Bank of New York Mellon Corp now owns 977,024 shares of the basic materials company's stock worth $60,019,000 after buying an additional 8,911 shares during the last quarter. Illinois Municipal Retirement Fund increased its stake in shares of Commercial Metals by 99.4% during the first quarter. Illinois Municipal Retirement Fund now owns 19,544 shares of the basic materials company's stock valued at $1,201,000 after buying an additional 9,743 shares during the period. Finally, Sanctuary Advisors LLC purchased a new position in shares of Commercial Metals during the first quarter valued at approximately $254,000. 86.90% of the stock is owned by institutional investors.

Commercial Metals Stock Up 0.6%

Shares of Commercial Metals stock opened at $68.13 on Thursday. Commercial Metals Company has a 1 year low of $49.66 and a 1 year high of $84.87. The firm has a market cap of $7.54 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 0.39 and a beta of 1.54. The company has a 50-day moving average of $70.28 and a 200 day moving average of $70.53. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its quarterly earnings data on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, topping the consensus estimate of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same quarter in the previous year, the firm posted $0.74 earnings per share. Commercial Metals's quarterly revenue was up 22.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Commercial Metals Company will post 6.63 earnings per share for the current fiscal year.

Commercial Metals Announces Dividend

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

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. The Goldman Sachs Group started coverage on shares of Commercial Metals in a report on Wednesday, April 1st. They issued a "neutral" rating and a $74.00 price target on the stock. Morgan Stanley lifted their target price on shares of Commercial Metals from $83.00 to $88.00 and gave the company an "overweight" rating in a research note on Monday, June 22nd. Deutsche Bank Aktiengesellschaft raised shares of Commercial Metals to a "buy" rating in a research note on Friday, May 22nd. Bank of America cut their price objective 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. Finally, UBS Group raised Commercial Metals from a "neutral" rating to a "buy" rating and increased their target price for the stock from $79.00 to $89.00 in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Commercial Metals has a consensus rating of "Moderate Buy" and a consensus target price of $79.45.

Insiders Place Their Bets

In related news, CEO Peter R. Matt acquired 8,230 shares of Commercial Metals stock in a transaction that occurred on Friday, July 10th. The stock was bought at an average price of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer directly owned 181,522 shares in the company, valued at approximately $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.62% of the stock is currently owned by company insiders.

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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