Van ECK Associates Corp Purchases 505,599 Shares of Commercial Metals Company $CMC

Key Points

• Van ECK Associates increased its Commercial Metals stake by 180.2% in the second quarter, acquiring 505,599 additional shares and bringing its holdings to 786,142 shares valued at approximately $49.3 million.
• Analysts maintain a generally positive view, with nine Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $81.18, compared with the stock’s recent price of $67.55.
• Commercial Metals exceeded quarterly earnings and revenue expectations, while also declaring a $0.20 quarterly dividend and authorizing a $600 million share-repurchase program covering up to 7.5% of outstanding shares.

Van ECK Associates Corp lifted its position in Commercial Metals Company (NYSE:CMC - Free Report) by 180.2% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 786,142 shares of the basic materials company's stock after acquiring an additional 505,599 shares during the quarter. Van ECK Associates Corp owned 0.71% of Commercial Metals worth $49,330,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the business. Wellington Management Group LLP grew its holdings in Commercial Metals by 17.8% during the 2nd quarter. Wellington Management Group LLP now owns 435,750 shares of the basic materials company's stock worth $27,343,000 after acquiring an additional 65,863 shares in the last quarter. Archer Investment Corp bought a new stake in shares of Commercial Metals in the 2nd quarter valued at about $90,000. Beacon Pointe Advisors LLC bought a new stake in shares of Commercial Metals in the 2nd quarter valued at about $1,138,000. Empowered Funds LLC purchased a new stake in shares of Commercial Metals in the 2nd quarter worth approximately $769,000. Finally, United Capital Financial Advisors LLC purchased a new stake in shares of Commercial Metals in the 2nd quarter worth approximately $216,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. The Goldman Sachs Group reissued a "buy" rating and issued a $85.00 price objective on shares of Commercial Metals in a research note on Thursday, August 6th. BMO Capital Markets lifted their price target on Commercial Metals from $77.00 to $80.00 and gave the company a "market perform" rating in a report on Thursday, August 6th. Zacks Research raised Commercial Metals from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Weiss Ratings cut Commercial Metals from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday. Finally, Deutsche Bank Aktiengesellschaft raised Commercial Metals to a "buy" rating in a research report on Friday, May 22nd. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $81.18.

Commercial Metals Trading Down 1.8%

Shares of NYSE:CMC opened at $67.55 on Friday. Commercial Metals Company has a 52-week low of $53.08 and a 52-week high of $84.87. The stock has a market cap of $7.47 billion, a price-to-earnings ratio of 12.72, a PEG ratio of 0.39 and a beta of 1.52. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73. The business has a 50-day moving average price of $68.02 and a 200-day moving average price of $69.40.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, beating analysts' consensus estimates of $1.70 by $0.03. Commercial Metals had a return on equity of 15.69% and a net margin of 6.72%.The firm had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same quarter in the prior year, the firm earned $0.74 earnings per share. Commercial Metals's revenue for the quarter was up 22.9% on a year-over-year basis. Equities analysts predict that Commercial Metals Company will post 6.64 EPS for the current year.

Commercial Metals Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Monday, July 6th. Commercial Metals's dividend payout ratio is 15.07%.

Commercial Metals declared that its board has authorized a share buyback plan on Wednesday, August 5th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the basic materials company to buy up to 7.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, Director John R. Mcpherson bought 1,390 shares of Commercial Metals stock in a transaction that occurred on Thursday, August 13th. The stock was purchased at an average price of $71.92 per share, with a total value of $99,968.80. Following the completion of the acquisition, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. This trade represents a 6.77% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Peter R. Matt bought 8,230 shares of the firm's stock in a transaction that occurred on Friday, July 10th. The shares were acquired at an average price of $61.30 per share, with a total value of $504,499.00. Following the completion of the transaction, the chief executive officer directly owned 181,522 shares of the company's stock, valued at $11,127,298.60. This trade represents a 4.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.62% of the stock is owned by corporate insiders.

Commercial Metals 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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