Tema Etfs LLC Buys New Position in Commercial Metals Company $CMC

Key Points

• Tema Etfs LLC initiated a new position in Commercial Metals (NYSE: CMC), purchasing 45,380 shares in Q4 valued at about $3.14 million.
• Notable insider moves: director Dennis V. Arriola bought 2,000 shares, while insider Jennifer J. Durbin sold 25,050 shares (a 32.14% reduction) for roughly $2.00 million.
• Commercial Metals reported Q earnings of $1.16 EPS (missing estimates) with revenue of $2.13B (beating estimates and up 21.5% YoY), raised its quarterly dividend to $0.20, and carries a consensus rating of Moderate Buy with an average target of $72.

Tema Etfs LLC bought a new position in shares of Commercial Metals Company (NYSE:CMC - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 45,380 shares of the basic materials company's stock, valued at approximately $3,141,000.

A number of other hedge funds have also added to or reduced their stakes in the business. Royal Bank of Canada lifted its stake in Commercial Metals by 1.4% in the first quarter. Royal Bank of Canada now owns 90,989 shares of the basic materials company's stock valued at $4,186,000 after buying an additional 1,219 shares during the period. Amundi grew its position in shares of Commercial Metals by 13.3% during the 1st quarter. Amundi now owns 2,480 shares of the basic materials company's stock worth $114,000 after buying an additional 291 shares during the period. Jones Financial Companies Lllp increased its stake in shares of Commercial Metals by 614.9% in the 1st quarter. Jones Financial Companies Lllp now owns 11,767 shares of the basic materials company's stock valued at $541,000 after acquiring an additional 10,121 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Commercial Metals by 5.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,033,514 shares of the basic materials company's stock valued at $47,552,000 after acquiring an additional 56,875 shares in the last quarter. Finally, Empowered Funds LLC lifted its position in shares of Commercial Metals by 1.8% during the 1st quarter. Empowered Funds LLC now owns 53,305 shares of the basic materials company's stock valued at $2,453,000 after acquiring an additional 941 shares during the period. 86.90% of the stock is currently owned by institutional investors.

Insider Activity

In related news, insider Jennifer J. Durbin sold 25,050 shares of the firm's stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total value of $2,003,248.50. Following the transaction, the insider owned 52,880 shares of the company's stock, valued at approximately $4,228,813.60. This trade represents a 32.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Dennis V. Arriola purchased 2,000 shares of the business's stock in a transaction on Tuesday, January 20th. The shares were bought at an average price of $74.69 per share, with a total value of $149,380.00. Following the purchase, the director directly owned 9,238 shares in the company, valued at approximately $689,986.22. The trade was a 27.63% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.62% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

CMC has been the topic of several research analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of Commercial Metals in a research note on Wednesday, January 21st. The Goldman Sachs Group started coverage on shares of Commercial Metals in a research note on Wednesday. They issued a "neutral" rating and a $74.00 price target for the company. 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 target price on Commercial Metals from $68.00 to $85.00 and gave the company an "overweight" rating in a research note on Friday, January 9th. Finally, Jefferies Financial Group set a $85.00 target price on Commercial Metals and gave the company a "buy" rating in a research report on Thursday, January 8th. Seven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $72.00.

Commercial Metals Stock Performance

NYSE CMC opened at $62.97 on Thursday. The company has a fifty day simple moving average of $71.73 and a 200 day simple moving average of $66.62. Commercial Metals Company has a 12-month low of $37.92 and a 12-month high of $84.87. The company has a current ratio of 2.38, a quick ratio of 1.55 and a debt-to-equity ratio of 0.75. The company has a market cap of $6.98 billion, a P/E ratio of 14.03, a PEG ratio of 0.34 and a beta of 1.47.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings data on Thursday, March 26th. The basic materials company reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.12). Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The business had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.10 billion. During the same quarter in the previous year, the company posted $0.26 EPS. The business's quarterly revenue was up 21.5% on a year-over-year basis. Sell-side analysts predict that Commercial Metals Company will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Monday, April 6th will be issued a $0.20 dividend. The ex-dividend date is Monday, April 6th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.3%. This is a boost from Commercial Metals's previous quarterly dividend of $0.18. Commercial Metals's dividend payout ratio (DPR) is currently 16.04%.

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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