Commercial Metals (NYSE:CMC) Sees Large Increase in Short Interest

Commercial Metals (NYSE:CMC - Get Free Report) was the target of a large increase in short interest during the month of March. As of March 15th, there was short interest totalling 3,320,000 shares, an increase of 11.8% from the February 29th total of 2,970,000 shares. Currently, 2.9% of the company's stock are sold short. Based on an average daily trading volume, of 1,030,000 shares, the days-to-cover ratio is currently 3.2 days.

Wall Street Analyst Weigh In

A number of analysts have commented on CMC shares. BMO Capital Markets raised their price objective on Commercial Metals from $52.00 to $60.00 and gave the stock a "market perform" rating in a research report on Friday, March 22nd. UBS Group began coverage on shares of Commercial Metals in a research report on Tuesday, January 16th. They set a "buy" rating and a $65.00 target price on the stock. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $58.25.

Commercial Metals Price Performance

Shares of NYSE CMC traded down $0.03 during midday trading on Monday, reaching $58.74. 839,298 shares of the company traded hands, compared to its average volume of 1,056,440. Commercial Metals has a 12 month low of $39.85 and a 12 month high of $59.81. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.69 and a current ratio of 4.19. The stock's 50-day simple moving average is $53.95 and its 200-day simple moving average is $49.41. The firm has a market cap of $6.80 billion, a PE ratio of 10.20 and a beta of 1.33.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings results on Thursday, March 21st. The basic materials company reported $0.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.93 by ($0.05). The firm had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.80 billion. Commercial Metals had a net margin of 8.09% and a return on equity of 17.72%. The company's revenue for the quarter was down 8.4% on a year-over-year basis. During the same period in the prior year, the business earned $1.44 earnings per share. As a group, equities analysts anticipate that Commercial Metals will post 5.22 earnings per share for the current fiscal year.

Commercial Metals Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 10th. Shareholders of record on Monday, April 1st will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.23%. This is a positive change from Commercial Metals's previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Thursday, March 28th. Commercial Metals's dividend payout ratio (DPR) is presently 12.50%.

Insider Activity

In other Commercial Metals news, Chairman Barbara Smith sold 57,194 shares of the stock in a transaction on Thursday, January 18th. The shares were sold at an average price of $49.94, for a total transaction of $2,856,268.36. Following the transaction, the chairman now directly owns 156,185 shares of the company's stock, valued at $7,799,878.90. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, CAO Lindsay L. Sloan sold 600 shares of the stock in a transaction that occurred on Friday, January 26th. The stock was sold at an average price of $51.52, for a total value of $30,912.00. Following the completion of the sale, the chief accounting officer now directly owns 12,338 shares of the company's stock, valued at $635,653.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Barbara Smith sold 57,194 shares of the business's stock in a transaction on Thursday, January 18th. The stock was sold at an average price of $49.94, for a total transaction of $2,856,268.36. Following the transaction, the chairman now directly owns 156,185 shares in the company, valued at approximately $7,799,878.90. The disclosure for this sale can be found here. Insiders sold a total of 320,089 shares of company stock worth $16,383,553 in the last three months. 1.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Commercial Metals

Several institutional investors have recently modified their holdings of the business. Steward Partners Investment Advisory LLC grew its holdings in Commercial Metals by 3.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 6,987 shares of the basic materials company's stock worth $337,000 after acquiring an additional 201 shares during the period. SummerHaven Investment Management LLC raised its stake in Commercial Metals by 1.8% during the 4th quarter. SummerHaven Investment Management LLC now owns 13,154 shares of the basic materials company's stock worth $658,000 after buying an additional 228 shares during the period. Janney Montgomery Scott LLC lifted its holdings in Commercial Metals by 1.1% during the third quarter. Janney Montgomery Scott LLC now owns 23,471 shares of the basic materials company's stock worth $1,160,000 after acquiring an additional 247 shares in the last quarter. Congress Asset Management Co. MA grew its stake in Commercial Metals by 0.4% in the fourth quarter. Congress Asset Management Co. MA now owns 67,943 shares of the basic materials company's stock valued at $3,400,000 after acquiring an additional 251 shares during the period. Finally, Affinity Wealth Management LLC raised its position in shares of Commercial Metals by 1.4% during the second quarter. Affinity Wealth Management LLC now owns 18,216 shares of the basic materials company's stock worth $959,000 after purchasing an additional 256 shares during the period. Institutional investors and hedge funds own 86.90% of the company's stock.

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.