Vanguard Group Inc. Lowers Stock Holdings in Commercial Metals Company $CMC

Key Points

• Vanguard Group Inc. has reduced its holdings in Commercial Metals by 2.3%, owning approximately 11.97 million shares worth $550.6 million after selling 280,647 shares in the first quarter.
• Commercial Metals reported a quarterly EPS of $0.74, which missed analysts' expectations of $0.85, alongside a revenue of $2.02 billion that fell short of the anticipated $2.04 billion.
• The company has announced a quarterly dividend of $0.18 per share, equating to a dividend yield of 1.3%, with a notably high dividend payout ratio of 232.26%.

Vanguard Group Inc. lessened its holdings in shares of Commercial Metals Company (NYSE:CMC - Free Report) by 2.3% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 11,967,846 shares of the basic materials company's stock after selling 280,647 shares during the quarter. Vanguard Group Inc. owned about 10.59% of Commercial Metals worth $550,641,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Park Square Financial Group LLC acquired a new position in shares of Commercial Metals during the 4th quarter worth about $33,000. Heck Capital Advisors LLC acquired a new position in Commercial Metals in the fourth quarter valued at approximately $34,000. UMB Bank n.a. increased its stake in Commercial Metals by 51.9% in the first quarter. UMB Bank n.a. now owns 784 shares of the basic materials company's stock valued at $36,000 after purchasing an additional 268 shares during the last quarter. Wayfinding Financial LLC acquired a new stake in Commercial Metals during the first quarter worth approximately $47,000. Finally, South Plains Financial Inc. purchased a new stake in shares of Commercial Metals during the 4th quarter worth approximately $73,000. Hedge funds and other institutional investors own 86.90% of the company's stock.

Commercial Metals Price Performance

CMC traded up $0.02 during trading on Monday, reaching $56.33. 354,066 shares of the stock were exchanged, compared to its average volume of 1,102,255. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.86 and a quick ratio of 2.00. The company has a market capitalization of $6.30 billion, a price-to-earnings ratio of 181.71, a P/E/G ratio of 2.60 and a beta of 1.28. Commercial Metals Company has a 1 year low of $37.92 and a 1 year high of $64.53. The business's 50 day moving average price is $51.66 and its two-hundred day moving average price is $48.36.

Commercial Metals (NYSE:CMC - Get Free Report) last posted 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). The business had revenue of $2.02 billion for the quarter, compared to analysts' expectations of $2.04 billion. Commercial Metals had a net margin of 0.48% and a return on equity of 7.45%. The business's revenue was down 2.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.02 earnings per share. As a group, equities research analysts anticipate that Commercial Metals Company will post 3.09 earnings per share for the current year.

Commercial Metals Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 9th. Stockholders of record on Monday, June 30th were issued a dividend of $0.18 per share. The ex-dividend date was Monday, June 30th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.3%. Commercial Metals's payout ratio is 232.26%.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Wolfe Research upgraded shares of Commercial Metals from a "peer perform" rating to an "outperform" rating in a research note on Friday, June 20th. UBS Group reissued a "neutral" rating and issued a $56.00 target price (up from $48.00) on shares of Commercial Metals in a research report on Wednesday, August 13th. Jefferies Financial Group reiterated a "buy" rating on shares of Commercial Metals in a research note on Friday, June 20th. Wells Fargo & Company upgraded shares of Commercial Metals to a "strong-buy" rating in a research report on Thursday. Finally, BMO Capital Markets reaffirmed a "market perform" rating and set a $55.00 price objective (down from $57.00) on shares of Commercial Metals in a research note on Tuesday, June 24th. Five investment analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $58.81.

About Commercial Metals

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.