JPMorgan Chase & Co. Increases Stake in Commercial Metals Company $CMC

Key Points

• JPMorgan Chase raised its stake in Commercial Metals by 7.9% in Q3 to 884,604 shares (about 0.80% of the company), valued at roughly $50.7 million, with institutional investors owning 86.9% of the stock.
• Commercial Metals topped expectations last quarter with $1.84 EPS versus $1.55 expected and $2.12 billion in revenue (up 11% YoY); analysts hold a "Moderate Buy" consensus with an average target of $72.80 and Morgan Stanley increasing its target to $85.
• The company pays a quarterly dividend of $0.18 (annualized $0.72, yield ~1.2%), and recent insider activity included an executive selling 25,050 shares while a director purchased 2,000 shares.

JPMorgan Chase & Co. lifted its holdings in shares of Commercial Metals Company (NYSE:CMC - Free Report) by 7.9% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 884,604 shares of the basic materials company's stock after purchasing an additional 64,491 shares during the period. JPMorgan Chase & Co. owned about 0.80% of Commercial Metals worth $50,670,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in CMC. Drummond Knight Asset Management Pty Ltd purchased a new stake in Commercial Metals during the 3rd quarter valued at about $15,579,000. Allspring Global Investments Holdings LLC increased its stake in Commercial Metals by 11.1% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 225,817 shares of the basic materials company's stock worth $13,312,000 after purchasing an additional 22,587 shares during the period. Mitsubishi UFJ Trust & Banking Corp increased its stake in Commercial Metals by 430.9% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 29,247 shares of the basic materials company's stock worth $1,675,000 after purchasing an additional 23,738 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Commercial Metals by 6.9% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 29,033 shares of the basic materials company's stock valued at $1,420,000 after purchasing an additional 1,868 shares during the last quarter. Finally, Rhumbline Advisers boosted its stake in shares of Commercial Metals by 1.3% during the second quarter. Rhumbline Advisers now owns 393,334 shares of the basic materials company's stock valued at $19,238,000 after purchasing an additional 5,147 shares during the period. 86.90% of the stock is owned by institutional investors.

Commercial Metals Stock Down 1.6%

Shares of Commercial Metals stock opened at $60.15 on Friday. Commercial Metals Company has a 1 year low of $37.92 and a 1 year high of $84.87. The firm has a market cap of $6.67 billion, a price-to-earnings ratio of 15.50, a PEG ratio of 0.33 and a beta of 1.47. The company has a 50-day moving average of $73.91 and a 200 day moving average of $66.40. The company has a debt-to-equity ratio of 0.77, a current ratio of 4.47 and a quick ratio of 3.70.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its quarterly earnings data on Thursday, January 8th. The basic materials company reported $1.84 EPS for the quarter, topping the consensus estimate of $1.55 by $0.29. The business had revenue of $2.12 billion for the quarter, compared to analyst estimates of $2.06 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. Commercial Metals's quarterly revenue was up 11.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.78 earnings per share. As a group, sell-side analysts anticipate that Commercial Metals Company will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, February 2nd. Stockholders of record on Monday, January 19th were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, January 16th. Commercial Metals's payout ratio is currently 18.56%.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CMC. Weiss Ratings restated a "hold (c)" rating on shares of Commercial Metals in a report on Wednesday, January 21st. Zacks Research cut shares of Commercial Metals from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 3rd. Morgan Stanley raised their price target on shares of Commercial Metals from $68.00 to $85.00 and gave the stock an "overweight" rating in a report on Friday, January 9th. Wall Street Zen raised shares of Commercial Metals from a "buy" rating to a "strong-buy" rating in a research note on Friday, November 28th. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $84.00 target price on shares of Commercial Metals in a report on Tuesday, December 30th. Eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $72.80.

Insider Activity at Commercial Metals

In other Commercial Metals news, insider Jennifer J. Durbin sold 25,050 shares of Commercial Metals stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total transaction of $2,003,248.50. Following the completion of the transaction, the insider owned 52,880 shares in the company, valued at approximately $4,228,813.60. The trade was a 32.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Dennis V. Arriola bought 2,000 shares of the company's stock in a transaction on Tuesday, January 20th. The stock was bought at an average cost of $74.69 per share, for a total transaction of $149,380.00. Following the completion of the acquisition, the director directly owned 9,238 shares of the company's stock, valued at approximately $689,986.22. This represents a 27.63% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.62% of the company's stock.

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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