Kettle Hill Capital Management LLC Acquires Shares of 165,515 Commercial Metals Company $CMC

Key Points

• Kettle Hill Capital Management opened a new position in Commercial Metals, buying 165,515 shares valued at about $11.46 million. The stake represented 2.6% of the fund’s portfolio and about 0.15% of CMC’s shares outstanding.
• Commercial Metals reported mixed quarterly results, with EPS of $1.16 falling short of estimates while revenue of $2.13 billion slightly beat expectations. Revenue also rose 21.5% year over year, and analysts currently expect full-year EPS of 6.4.
• The company raised its quarterly dividend to $0.20 per share from $0.18, bringing the annualized payout to $0.80 and a yield of about 1.0%. Meanwhile, analysts maintain a consensus rating of Moderate Buy with an average price target of $77.10.

Kettle Hill Capital Management LLC bought a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) during the fourth quarter, according to its most recent filing with the SEC. The fund bought 165,515 shares of the basic materials company's stock, valued at approximately $11,457,000. Commercial Metals accounts for 2.6% of Kettle Hill Capital Management LLC's investment portfolio, making the stock its 16th largest holding. Kettle Hill Capital Management LLC owned about 0.15% of Commercial Metals at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Squarepoint Ops LLC increased its holdings in Commercial Metals by 892.2% during the fourth quarter. Squarepoint Ops LLC now owns 141,009 shares of the basic materials company's stock worth $9,761,000 after buying an additional 158,809 shares during the last quarter. Vanguard Personalized Indexing Management LLC grew its position in shares of Commercial Metals by 6.6% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 14,893 shares of the basic materials company's stock valued at $1,031,000 after acquiring an additional 917 shares during the period. Mariner LLC grew its position in shares of Commercial Metals by 151.5% during the 4th quarter. Mariner LLC now owns 27,936 shares of the basic materials company's stock valued at $1,934,000 after acquiring an additional 16,830 shares during the period. NFJ Investment Group LLC bought a new position in shares of Commercial Metals during the 4th quarter valued at approximately $12,600,000. Finally, Fieldview Capital Management LLC purchased a new stake in shares of Commercial Metals during the 4th quarter worth approximately $768,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

Commercial Metals Price Performance

Shares of NYSE CMC opened at $77.06 on Tuesday. The stock has a market cap of $8.55 billion, a PE ratio of 17.16, a price-to-earnings-growth ratio of 0.47 and a beta of 1.50. Commercial Metals Company has a fifty-two week low of $47.06 and a fifty-two week high of $84.87. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.55 and a current ratio of 2.38. The stock has a fifty day moving average of $70.51 and a 200-day moving average of $70.80.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings data on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.28 by ($0.12). The company had revenue of $2.13 billion for the quarter, compared to analysts' expectations of $2.10 billion. Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The business's revenue for the quarter was up 21.5% on a year-over-year basis. During the same period last year, the company posted $0.26 EPS. Equities research analysts anticipate that Commercial Metals Company will post 6.4 earnings per share for the current year.

Commercial Metals Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Monday, April 6th were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.0%. This is an increase from Commercial Metals's previous quarterly dividend of $0.18. The ex-dividend date was Monday, April 6th. Commercial Metals's dividend payout ratio (DPR) is 16.04%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on CMC shares. Jefferies Financial Group raised shares of Commercial Metals from a "buy" rating to a "buy" rating in a report on Friday, June 5th. Wall Street Zen downgraded Commercial Metals from a "strong-buy" rating to a "buy" rating in a research report on Saturday, April 4th. Deutsche Bank Aktiengesellschaft raised Commercial Metals to a "buy" rating in a research report on Friday, May 22nd. Zacks Research downgraded Commercial Metals from a "hold" rating to a "strong sell" rating in a research note on Friday. Finally, The Goldman Sachs Group initiated coverage on Commercial Metals in a report on Wednesday, April 1st. They issued a "neutral" rating and a $74.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus 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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