William Blair Investment Management LLC Buys Shares of 156,647 Commercial Metals Company $CMC

Key Points

• William Blair Investment Management purchased 156,647 shares of Commercial Metals, valued at approximately $9.83 million, giving it a 0.14% stake. Institutional investors collectively own 86.9% of the company.
• Analysts maintain a generally positive outlook, with 10 Buy ratings and five Hold ratings producing a consensus “Moderate Buy” rating and an average price target of $81.18.
• Commercial Metals reported quarterly earnings and revenue above estimates, while its board authorized a $600 million share-repurchase program covering up to 7.5% of outstanding shares; the company also pays a $0.20 quarterly dividend.

William Blair Investment Management LLC purchased a new stake in shares of Commercial Metals Company (NYSE:CMC - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 156,647 shares of the basic materials company's stock, valued at approximately $9,830,000. William Blair Investment Management LLC owned 0.14% of Commercial Metals as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. USA Financial Formulas boosted its stake in Commercial Metals by 67.6% during the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company's stock worth $30,000 after buying an additional 200 shares in the last quarter. Global Retirement Partners LLC acquired a new position in shares of Commercial Metals in the 2nd quarter valued at $34,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Commercial Metals by 617.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company's stock worth $58,000 after acquiring an additional 716 shares during the period. Los Angeles Capital Management LLC bought a new position in shares of Commercial Metals during the 4th quarter worth about $59,000. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Commercial Metals by 105.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,222 shares of the basic materials company's stock valued at $75,000 after acquiring an additional 626 shares in the last quarter. 86.90% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Zacks Research raised shares of Commercial Metals from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Citigroup cut their price target on shares of Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Jefferies Financial Group raised Commercial Metals from a "buy" rating to a "buy" rating in a report on Friday, June 5th. BNP Paribas Exane upgraded Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 price objective on the stock in a research note on Wednesday, July 8th. Finally, BMO Capital Markets increased their target price on Commercial Metals from $77.00 to $80.00 and gave the stock a "market perform" rating in a report on Thursday, August 6th. Ten analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $81.18.

Insider Activity

In related news, Director John R. Mcpherson purchased 1,390 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was acquired 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 acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Peter R. Matt acquired 8,230 shares of the company's stock in a transaction that occurred on Friday, July 10th. The stock was bought at an average price of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer directly owned 181,522 shares in the company, valued at $11,127,298.60. The trade was a 4.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.62% of the company's stock.

Commercial Metals Price Performance

Commercial Metals stock opened at $66.36 on Monday. The business's fifty day moving average is $68.73 and its two-hundred day moving average is $69.83. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. The firm has a market cap of $7.34 billion, a P/E ratio of 12.50, a P/E/G ratio of 0.38 and a beta of 1.52. Commercial Metals Company has a 52 week low of $53.08 and a 52 week high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share 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 company had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period last year, the company posted $0.74 earnings per share. The firm's quarterly revenue was up 22.9% compared to the same quarter last year. Equities research analysts forecast that Commercial Metals Company will post 6.64 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 15th. Shareholders of record on Monday, July 6th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.2%. The ex-dividend date was Monday, July 6th. Commercial Metals's dividend payout ratio (DPR) is presently 15.07%.

Commercial Metals announced that its board has approved a stock buyback plan on Wednesday, August 5th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the basic materials company to purchase up to 7.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

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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