Short Interest in Commercial Metals Company (NYSE:CMC) Rises By 27.7%

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) saw a large increase in short interest in the month of August. As of August 15th, there was short interest totaling 3,410,000 shares, an increase of 27.7% from the July 31st total of 2,670,000 shares. Approximately 3.1% of the shares of the company are sold short. Based on an average daily volume of 1,010,000 shares, the days-to-cover ratio is presently 3.4 days. Based on an average daily volume of 1,010,000 shares, the days-to-cover ratio is presently 3.4 days. Approximately 3.1% of the shares of the company are sold short.

Commercial Metals Stock Performance

CMC traded down $1.39 during midday trading on Tuesday, reaching $58.40. The company had a trading volume of 1,158,026 shares, compared to its average volume of 1,087,297. The business has a 50-day moving average price of $54.35 and a two-hundred day moving average price of $49.18. Commercial Metals has a 12-month low of $37.92 and a 12-month high of $64.53. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.00 and a current ratio of 2.86. The stock has a market cap of $6.54 billion, a PE ratio of 188.39, a P/E/G ratio of 1.79 and a beta of 1.33.

Commercial Metals (NYSE:CMC - Get Free Report) last posted its quarterly earnings results on Monday, June 23rd. The basic materials company reported $0.74 earnings per share (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 the consensus estimate of $2.04 billion. During the same period last year, the firm earned $1.02 EPS. The business's revenue for the quarter was down 2.8% on a year-over-year basis. On average, sell-side analysts expect that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Dividend Announcement

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

Institutional Investors Weigh In On Commercial Metals

Several institutional investors have recently added to or reduced their stakes in CMC. State Street Corp raised its holdings in 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. lifted its holdings in shares of 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. boosted its holdings in shares of Commercial Metals by 10.0% during the 2nd quarter. Franklin Resources Inc. now owns 3,193,930 shares of the basic materials company's stock valued at $156,215,000 after acquiring an additional 290,256 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in shares of Commercial Metals by 27.5% during the 1st quarter. Victory Capital Management Inc. now owns 3,089,313 shares of the basic materials company's stock valued at $142,139,000 after acquiring an additional 666,886 shares during the last quarter. Finally, American Century Companies Inc. boosted its holdings in shares of Commercial Metals by 7.8% during the 2nd quarter. American Century Companies Inc. now owns 1,711,656 shares of the basic materials company's stock valued at $83,717,000 after acquiring an additional 124,397 shares during the last quarter. Hedge funds and other institutional investors own 86.90% of the company's stock.

Analyst Ratings Changes

CMC has been the topic of a number of research reports. BMO Capital Markets reiterated a "market perform" rating and issued a $55.00 price target (down previously from $57.00) on shares of Commercial Metals in a research note on Tuesday, June 24th. Wells Fargo & Company raised shares of Commercial Metals to a "strong-buy" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. increased their price objective on shares of Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Morgan Stanley set a $57.50 price objective on shares of Commercial Metals in a research note on Wednesday, June 25th. Finally, Wall Street Zen raised shares of Commercial Metals from a "hold" rating to a "buy" rating in a research note on Saturday, August 30th. One 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 stock. Based on data from MarketBeat, Commercial Metals currently has a consensus rating of "Moderate Buy" and a consensus target price 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.