Commercial Metals (NYSE:CMC) Stock Price Breaks Above Fifty Day Moving Average - Time to Sell?

Key Points

• Commercial Metals shares rose 2.2%, trading above their 50-day moving average of $65.44 and reaching $66.30, although they remained below the 200-day average of $69.26.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $78.73; however, several firms recently lowered their targets or downgraded the stock.
• The company reported quarterly EPS of $2.09 and revenue of $2.66 billion, beating estimates, while supporting shareholders through a $0.20 quarterly dividend and a $600 million share-repurchase authorization.

Shares of Commercial Metals Company (NYSE:CMC - Get Free Report) crossed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $65.44 and traded as high as $66.30. Commercial Metals shares last traded at $65.5420, with a volume of 1,050,976 shares.

Analyst Ratings Changes

Several analysts have commented on the company. Barclays lowered their price target on Commercial Metals from $80.00 to $72.00 and set an "equal weight" rating for the company in a report on Tuesday, October 20th. Wall Street Zen downgraded shares of Commercial Metals from a "buy" rating to a "hold" rating in a research note on Saturday, October 17th. JPMorgan Chase & Co. cut their price objective on shares of Commercial Metals from $83.00 to $80.00 and set an "overweight" rating on the stock in a report on Friday, October 9th. BMO Capital Markets decreased their target price on shares of Commercial Metals from $75.00 to $73.00 and set a "market perform" rating on the stock in a research report on Monday, October 19th. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $85.00 target price on shares of Commercial Metals in a report on Thursday, August 6th. Ten analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $78.73.

Commercial Metals Trading Up 2.2%

The firm has a fifty day moving average of $65.44 and a 200 day moving average of $69.26. The firm has a market capitalization of $7.21 billion, a PE ratio of 11.17, a P/E/G ratio of 3.80 and a beta of 1.53. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.66 and a current ratio of 2.34.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.95 by $0.14. The company had revenue of $2.66 billion during the quarter, compared to the consensus estimate of $2.56 billion. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. Commercial Metals's revenue for the quarter was up 25.7% on a year-over-year basis. During the same quarter last year, the company earned $1.37 earnings per share. Equities research analysts expect that Commercial Metals Company will post 6.95 EPS for the current year.

Commercial Metals Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 11th. Stockholders of record on Wednesday, October 28th will be paid a $0.20 dividend. The ex-dividend date is Wednesday, October 28th. This represents a $0.80 annualized dividend and a dividend yield of 1.2%. Commercial Metals's dividend payout ratio is 13.63%.

Commercial Metals declared that its board has authorized a share repurchase plan on Wednesday, August 5th that permits the company to repurchase $600 million in shares. This repurchase authorization permits the basic materials company to buy up to 7.5% of its stock through open market purchases. Share repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director John McPherson purchased 1,390 shares of the firm's stock in a transaction dated 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 transaction, the director owned 21,927 shares of the company's stock, valued at $1,576,989.84. This represents a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.62% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Commercial Metals

Large investors have recently added to or reduced their stakes in the company. Vise Technologies Inc. grew its holdings in Commercial Metals by 44.2% during the third quarter. Vise Technologies Inc. now owns 25,025 shares of the basic materials company's stock valued at $1,554,000 after purchasing an additional 7,668 shares during the last quarter. MGO One Seven LLC bought a new position in shares of Commercial Metals in the third quarter valued at approximately $205,000. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its stake in shares of Commercial Metals by 0.8% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 37,814 shares of the basic materials company's stock worth $2,348,000 after buying an additional 300 shares during the last quarter. Soltis Investment Advisors LLC acquired a new stake in shares of Commercial Metals in the third quarter worth $200,000. Finally, BOKF NA lifted its stake in shares of Commercial Metals by 4.2% in the third quarter. BOKF NA now owns 7,396 shares of the basic materials company's stock worth $459,000 after buying an additional 297 shares during the last quarter. 86.90% of the stock is currently owned by institutional investors.

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a steel and metals manufacturer, recycler and fabricator headquartered in Irving, Texas. The company produces and sells steel products used in construction, infrastructure and industrial applications, including reinforcing bar, wire rod, merchant bar, structural steel and related products.

CMC operates an integrated recycling and manufacturing model. Its recycling facilities collect and process ferrous and nonferrous scrap metal, which is used as raw material in the company's electric-arc-furnace steel mills.

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