T. Rowe Price Investment Management Inc. Makes New Investment in Commercial Metals Company $CMC

Key Points

• T. Rowe Price Investment Management Inc. has acquired 135,896 shares of Commercial Metals Company (NYSE: CMC), valued at approximately $6.25 million, representing 0.12% ownership as of its latest SEC filing.
• Commercial Metals reported $0.74 earnings per share for its recent quarter, falling short of the consensus estimate of $0.85, with a year-over-year revenue decline of 2.8%.
• The company recently announced a quarterly dividend of $0.18 per share, resulting in an annualized yield of 1.2% despite a high payout ratio of 232.26%.

T. Rowe Price Investment Management Inc. bought a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) during the 1st quarter, according to its most recent 13F filing with the SEC. The firm bought 135,896 shares of the basic materials company's stock, valued at approximately $6,253,000. T. Rowe Price Investment Management Inc. owned 0.12% of Commercial Metals as of its most recent filing with the SEC.

Several other hedge funds have also recently bought and sold shares of CMC. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Commercial Metals by 12.4% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 25,853 shares of the basic materials company's stock valued at $1,189,000 after purchasing an additional 2,846 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Commercial Metals by 25.6% in the first quarter. GAMMA Investing LLC now owns 3,280 shares of the basic materials company's stock valued at $151,000 after purchasing an additional 669 shares during the last quarter. SG Americas Securities LLC raised its holdings in shares of Commercial Metals by 460.1% in the first quarter. SG Americas Securities LLC now owns 12,383 shares of the basic materials company's stock valued at $570,000 after purchasing an additional 10,172 shares during the last quarter. State of Alaska Department of Revenue raised its holdings in shares of Commercial Metals by 2.5% in the first quarter. State of Alaska Department of Revenue now owns 13,316 shares of the basic materials company's stock valued at $612,000 after purchasing an additional 325 shares during the last quarter. Finally, Envestnet Asset Management Inc. raised its holdings in shares of Commercial Metals by 6.3% in the first quarter. Envestnet Asset Management Inc. now owns 385,527 shares of the basic materials company's stock valued at $17,738,000 after purchasing an additional 22,682 shares during the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

Commercial Metals Stock Up 1.4%

Shares of NYSE:CMC traded up $0.81 during midday trading on Thursday, hitting $57.82. The stock had a trading volume of 1,066,140 shares, compared to its average volume of 1,097,000. Commercial Metals Company has a 12 month low of $37.92 and a 12 month high of $64.53. The company has a quick ratio of 2.00, a current ratio of 2.86 and a debt-to-equity ratio of 0.32. The business's 50-day simple moving average is $52.97 and its 200-day simple moving average is $48.83. The company has a market cap of $6.47 billion, a P/E ratio of 186.52, a PEG ratio of 2.66 and a beta of 1.28.

Commercial Metals (NYSE:CMC - Get Free Report) last released its earnings results on Monday, June 23rd. The basic materials company reported $0.74 earnings per share for the quarter, missing the consensus estimate of $0.85 by ($0.11). Commercial Metals had a net margin of 0.48% and a return on equity of 7.45%. The firm had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same period in the prior year, the business posted $1.02 earnings per share. Commercial Metals's quarterly revenue was down 2.8% compared to the same quarter last year. On average, sell-side analysts forecast that Commercial Metals Company will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 9th. Shareholders of record on Monday, June 30th were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Monday, June 30th. Commercial Metals's payout ratio is 232.26%.

Analyst Ratings Changes

A number of research firms have recently issued reports on CMC. Wells Fargo & Company upgraded shares of Commercial Metals to a "strong-buy" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. lifted their price objective on shares of Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a report on Monday, July 14th. UBS Group lifted their price objective on shares of Commercial Metals from $48.00 to $56.00 and gave the company a "neutral" rating in a report on Wednesday, August 13th. Jefferies Financial Group reiterated a "buy" rating on shares of Commercial Metals in a report on Friday, June 20th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $55.00 price objective (down from $57.00) on shares of Commercial Metals in a report on Tuesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $58.81.

Commercial Metals Profile

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.