Jupiter Topco LLC Takes Position in Commercial Metals Company $CMC

Key Points

• Jupiter Topco LLC acquired 586,474 shares of Commercial Metals, worth approximately $36.8 million and representing a 0.53% stake. Institutional investors collectively own 86.9% of the company.
• Commercial Metals exceeded quarterly expectations, reporting $1.73 in earnings per share on $2.48 billion in revenue, with revenue up 22.9% year over year.
• The company approved a $600 million share-repurchase program, while analysts maintain a “Moderate Buy” consensus with an average price target of $81.18 versus the stock’s reported $67.55 price.

Jupiter Topco LLC purchased a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 586,474 shares of the basic materials company's stock, valued at approximately $36,800,000. Jupiter Topco LLC owned 0.53% of Commercial Metals as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently modified their holdings of CMC. Hsbc Holdings PLC acquired a new stake in Commercial Metals in the second quarter valued at $662,000. Expect Equity LLC acquired a new position in Commercial Metals during the 2nd quarter worth about $2,565,000. Palisade Capital Management LP bought a new stake in shares of Commercial Metals in the 2nd quarter valued at about $11,197,000. Legal & General Group Plc acquired a new stake in shares of Commercial Metals in the second quarter valued at about $10,245,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in shares of Commercial Metals in the second quarter valued at about $6,571,000. Institutional investors own 86.90% of the company's stock.

Commercial Metals Trading Down 1.8%

NYSE CMC opened at $67.55 on Friday. The business has a 50 day simple moving average of $68.02 and a 200 day simple moving average of $69.40. Commercial Metals Company has a one year low of $53.08 and a one year high of $84.87. The stock has a market capitalization of $7.47 billion, a P/E ratio of 12.72, a P/E/G ratio of 0.40 and a beta of 1.52. 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 issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share for the quarter, topping analysts' consensus estimates of $1.70 by $0.03. The business had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.40 billion. Commercial Metals had a return on equity of 15.69% and a net margin of 6.72%.The firm's revenue for the quarter was up 22.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.74 earnings per share. Research analysts expect that Commercial Metals Company will post 6.64 earnings per share for the current year.

Commercial Metals Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders 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 payout ratio is currently 15.07%.

Commercial Metals announced that its Board of Directors has approved a stock buyback 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 repurchase up to 7.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Zacks Research raised Commercial Metals from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Barclays increased their target price on shares of Commercial Metals from $75.00 to $80.00 and gave the company an "equal weight" rating in a research report on Friday, August 7th. Wells Fargo & Company raised their price target on shares of Commercial Metals from $77.00 to $80.00 and gave the stock an "equal weight" rating in a report on Friday, June 26th. BMO Capital Markets boosted their price target on shares of 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, Citigroup reduced their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $81.18.

Insiders Place Their Bets

In related news, Director John R. Mcpherson bought 1,390 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were bought at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the transaction, the director directly owned 21,927 shares of the company's stock, valued at approximately $1,576,989.84. The trade was a 6.77% 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 this hyperlink. Also, CEO Peter R. Matt bought 8,230 shares of the business's stock in a transaction that occurred on Friday, July 10th. The shares were bought at an average cost of $61.30 per share, for a total transaction of $504,499.00. Following the completion of the purchase, the chief executive officer owned 181,522 shares of the company's stock, valued at $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.62% of the stock is owned by 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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