Commercial Metals Company (NYSE:CMC) Short Interest Up 27.7% in August

Key Points

• Short interest in Commercial Metals Company (NYSE:CMC) increased by 27.7% in August, rising to 3,410,000 shares from 2,670,000 shares at the end of July.
• The company reported Q2 earnings of $0.74 per share, missing expectations by $0.11, with a revenue drop of 2.8% year-over-year to $2.02 billion.
• Commercial Metals recently declared a quarterly dividend of $0.18 per share, representing a 1.2% yield with a high payout ratio of 232.26%.

Commercial Metals Company (NYSE:CMC - Get Free Report) was the target of a significant growth in short interest during the month of August. As of August 15th, there was short interest totaling 3,410,000 shares, a growth of 27.7% from the July 31st total of 2,670,000 shares. Currently, 3.1% of the shares of the stock are short sold. Based on an average daily volume of 1,010,000 shares, the days-to-cover ratio is currently 3.4 days. Based on an average daily volume of 1,010,000 shares, the days-to-cover ratio is currently 3.4 days. Currently, 3.1% of the shares of the stock are short sold.

Commercial Metals Stock Down 2.4%

CMC stock traded down $1.41 during mid-day trading on Friday, hitting $57.86. 624,623 shares of the company were exchanged, compared to its average volume of 834,723. The company has a market capitalization of $6.48 billion, a PE ratio of 186.65, a price-to-earnings-growth ratio of 1.75 and a beta of 1.33. The company has a current ratio of 2.86, a quick ratio of 2.00 and a debt-to-equity ratio of 0.32. Commercial Metals has a twelve month low of $37.92 and a twelve month high of $64.53. The firm has a fifty day simple moving average of $54.88 and a 200 day simple moving average of $49.43.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its quarterly earnings results on Monday, June 23rd. The basic materials company reported $0.74 EPS for the quarter, missing the consensus estimate of $0.85 by ($0.11). Commercial Metals had a net margin of 0.48% and a return on equity of 7.45%. The business had revenue of $2.02 billion during the quarter, compared to analyst estimates of $2.04 billion. During the same period last year, the firm posted $1.02 earnings per share. The company's quarterly revenue was down 2.8% on a year-over-year basis. On average, research analysts forecast that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 9th. Stockholders of record on Monday, June 30th were issued a $0.18 dividend. The ex-dividend date of this dividend was Monday, June 30th. This represents a $0.72 annualized dividend and a dividend yield of 1.2%. Commercial Metals's payout ratio is 232.26%.

Institutional Trading of Commercial Metals

Hedge funds and other institutional investors have recently made changes to their positions in the stock. State Street Corp raised its holdings in shares of Commercial Metals by 1.2% in the 2nd quarter. State Street Corp now owns 6,109,178 shares of the basic materials company's stock worth $299,898,000 after purchasing an additional 71,703 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its position in Commercial Metals by 14.9% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 4,161,292 shares of the basic materials company's stock valued at $191,461,000 after purchasing an additional 539,309 shares in the last quarter. Franklin Resources Inc. grew its position in Commercial Metals by 10.0% during the second quarter. Franklin Resources Inc. now owns 3,193,930 shares of the basic materials company's stock valued at $156,215,000 after purchasing an additional 290,256 shares in the last quarter. Victory Capital Management Inc. grew its position in Commercial Metals by 27.5% during the first quarter. Victory Capital Management Inc. now owns 3,089,313 shares of the basic materials company's stock valued at $142,139,000 after purchasing an additional 666,886 shares in the last quarter. Finally, American Century Companies Inc. grew its position in Commercial Metals by 7.8% in the second quarter. American Century Companies Inc. now owns 1,711,656 shares of the basic materials company's stock worth $83,717,000 after acquiring an additional 124,397 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Jefferies Financial Group restated a "buy" rating on shares of Commercial Metals in a research report on Friday, June 20th. Wall Street Zen lowered shares of Commercial Metals from a "buy" rating to a "hold" rating in a research report on Saturday. JPMorgan Chase & Co. increased their price target on shares of Commercial Metals from $52.00 to $54.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. BMO Capital Markets reissued a "market perform" rating and issued a $55.00 target price (down previously from $57.00) on shares of Commercial Metals in a research note on Tuesday, June 24th. Finally, Morgan Stanley set a $57.50 price objective on shares of Commercial Metals in a research report on Wednesday, June 25th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Commercial Metals presently has a consensus rating of "Moderate Buy" and a consensus price target of $58.81.

Commercial Metals Company Profile

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.