DA Davidson Downgrades Commercial Metals Co. (CMC) to Neutral
Commercial Metals Co. (NYSE:CMC) was downgraded by research analysts at DA Davidson from a “buy” rating to a “neutral” rating in a report issued on Friday. They presently have a $22.00 price objective on the stock, up from their previous price objective of $19.00. DA Davidson’s target price points to a potential upside of 1.34% from the stock’s previous close. The analysts noted that the move was a valuation call.
CMC has been the topic of several other research reports. Jefferies Group reaffirmed a “hold” rating and set a $16.50 target price on shares of Commercial Metals in a research note on Friday, September 16th. Citigroup Inc. raised Commercial Metals from a “neutral” rating to a “buy” rating and lifted their target price for the company from $16.00 to $20.00 in a research note on Wednesday, November 9th. Zacks Investment Research cut Commercial Metals from a “hold” rating to a “sell” rating in a research note on Wednesday, August 31st. Credit Suisse Group AG set a $15.00 target price on Commercial Metals and gave the company a “hold” rating in a research note on Saturday, October 8th. Finally, TheStreet cut Commercial Metals from a “buy” rating to a “hold” rating in a research note on Thursday, October 27th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $18.00.
Shares of Commercial Metals (NYSE:CMC) opened at 21.71 on Friday. Commercial Metals has a 1-year low of $12.44 and a 1-year high of $21.82. The stock’s 50 day moving average is $16.40 and its 200-day moving average is $16.58. The stock has a market cap of $2.50 billion, a price-to-earnings ratio of 46.39 and a beta of 1.18.
Commercial Metals (NYSE:CMC) last released its earnings results on Thursday, October 27th. The company reported $0.01 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.30 by $0.29. Commercial Metals had a net margin of 1.19% and a return on equity of 7.66%. The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same period last year, the firm earned ($0.05) EPS. The company’s revenue was down 14.4% compared to the same quarter last year. On average, analysts anticipate that Commercial Metals will post $1.01 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 23rd. Shareholders of record on Wednesday, November 9th will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, November 7th. This represents a $0.48 dividend on an annualized basis and a yield of 2.21%. Commercial Metals’s payout ratio is currently 102.13%.
In other Commercial Metals news, Director Anthony A. Massaro sold 2,421 shares of the company’s stock in a transaction that occurred on Friday, November 11th. The stock was sold at an average price of $20.52, for a total transaction of $49,678.92. Following the completion of the sale, the director now owns 69,398 shares of the company’s stock, valued at $1,424,046.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Adam B. Batchelor sold 5,372 shares of the company’s stock in a transaction that occurred on Friday, November 11th. The stock was sold at an average price of $20.37, for a total value of $109,427.64. Following the sale, the vice president now directly owns 21,852 shares of the company’s stock, valued at approximately $445,125.24. The disclosure for this sale can be found here. Company insiders own 1.20% of the company’s stock.
A number of large investors have recently made changes to their positions in the company. LS Investment Advisors LLC boosted its stake in shares of Commercial Metals by 68.9% in the second quarter. LS Investment Advisors LLC now owns 6,859 shares of the company’s stock worth $116,000 after buying an additional 2,798 shares during the last quarter. Springbok Capital Management LLC raised its position in shares of Commercial Metals by 710.0% in the first quarter. Springbok Capital Management LLC now owns 8,100 shares of the company’s stock worth $137,000 after buying an additional 7,100 shares during the period. Cantab Capital Partners LLP acquired a new position in shares of Commercial Metals during the second quarter worth approximately $168,000. Eqis Capital Management Inc. acquired a new position in shares of Commercial Metals during the second quarter worth approximately $206,000. Finally, Acrospire Investment Management LLC raised its position in shares of Commercial Metals by 130.2% in the third quarter. Acrospire Investment Management LLC now owns 12,730 shares of the company’s stock worth $206,000 after buying an additional 7,200 shares during the period. 91.08% of the stock is owned by hedge funds and other institutional investors.
Commercial Metals Company Profile
Commercial Metals Company (CMC) manufactures, recycles and markets steel and metal products, related materials and services. CMC has a network of steel mills (minimills), steel fabrication and processing facilities, warehouses, metal recycling facilities. It has five business segments: Americas Recycling, Americas Mills, Americas Fabrication, International Mill, and International Marketing and Distribution.
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