Cibc World Market Inc. Acquires New Shares in Commercial Metals Company $CMC

Cibc World Market Inc. acquired a new position in shares of Commercial Metals Company (NYSE:CMC) during the 2nd quarter, Holdings Channel.com reports. The firm acquired 14,846 shares of the basic materials company’s stock, valued at approximately $932,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Qsemble Capital Management LP raised its holdings in Commercial Metals by 118.6% during the 4th quarter. Qsemble Capital Management LP now owns 49,885 shares of the basic materials company’s stock worth $3,453,000 after buying an additional 27,062 shares during the period. California Public Employees Retirement System boosted its holdings in shares of Commercial Metals by 11.5% in the first quarter. California Public Employees Retirement System now owns 277,877 shares of the basic materials company’s stock valued at $17,070,000 after buying an additional 28,693 shares during the period. NFJ Investment Group LLC acquired a new position in shares of Commercial Metals in the fourth quarter valued at approximately $12,600,000. Bank of America Corp DE increased its position in shares of Commercial Metals by 87.4% during the first quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company’s stock worth $100,205,000 after acquiring an additional 760,985 shares in the last quarter. Finally, Kettle Hill Capital Management LLC acquired a new position in Commercial Metals in the 4th quarter worth $11,457,000. 86.90% of the stock is currently owned by institutional investors.

Commercial Metals Stock Performance

Shares of NYSE CMC opened at $68.78 on Friday. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54. The firm has a market cap of $7.61 billion, a price-to-earnings ratio of 12.95, a P/E/G ratio of 0.39 and a beta of 1.52. The stock’s fifty day moving average price is $68.12 and its two-hundred day moving average price is $69.41. Commercial Metals Company has a one year low of $53.08 and a one year high of $84.87.

Commercial Metals (NYSE:CMC) last posted its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share for the quarter, topping analysts’ consensus estimates of $1.70 by $0.03. The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.40 billion. Commercial Metals had a return on equity of 15.69% and a net margin of 6.72%.The company’s revenue was up 22.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.74 earnings per share. On average, equities analysts forecast that Commercial Metals Company will post 6.64 EPS for the current year.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, July 6th were given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Monday, July 6th. Commercial Metals’s dividend payout ratio (DPR) is currently 15.07%.

Commercial Metals announced that its board has authorized a share repurchase plan on Wednesday, August 5th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the basic materials company to purchase up to 7.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several brokerages have issued reports on CMC. Bank of America cut their price target on Commercial Metals from $84.00 to $78.00 and set a “buy” rating for the company in a report on Thursday, July 9th. Citigroup decreased their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. Barclays increased their price objective on shares of Commercial Metals from $75.00 to $80.00 and gave the company an “equal weight” rating in a research report on Friday, August 7th. BNP Paribas Exane upgraded shares of Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 target price for the company in a research note on Wednesday, July 8th. Finally, Jefferies Financial Group raised shares of Commercial Metals from a “buy” rating to a “buy” rating in a report on Friday, June 5th. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $81.18.

Insider Transactions at Commercial Metals

In other Commercial Metals news, Director John R. Mcpherson acquired 1,390 shares of the business’s stock in a transaction on Thursday, August 13th. The stock was purchased at an average price of $71.92 per share, with a total value of $99,968.80. Following the acquisition, the director directly owned 21,927 shares of the company’s stock, valued at approximately $1,576,989.84. This trade represents a 6.77% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Peter R. Matt bought 8,230 shares of the firm’s stock in a transaction on Friday, July 10th. The shares were acquired at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the transaction, the chief executive officer owned 181,522 shares in the company, valued at approximately $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.62% of the stock is currently owned by company insiders.

Commercial Metals Profile

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.