Commercial Metals Company (NYSE:CMC) Receives $72.80 Consensus Target Price from Analysts

Commercial Metals Company (NYSE:CMC) has earned a consensus recommendation of “Moderate Buy” from the twelve brokerages that are currently covering the stock, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $72.80.

Several equities research analysts have recently commented on the company. Morgan Stanley boosted their price target on Commercial Metals from $68.00 to $85.00 and gave the stock an “overweight” rating in a research note on Friday, January 9th. Wells Fargo & Company raised their price objective on Commercial Metals from $79.00 to $80.00 and gave the company an “overweight” rating in a research note on Monday, March 2nd. Jefferies Financial Group set a $85.00 price objective on Commercial Metals and gave the stock a “buy” rating in a report on Thursday, January 8th. The Goldman Sachs Group reiterated a “buy” rating and set a $84.00 target price on shares of Commercial Metals in a research report on Tuesday, December 30th. Finally, Zacks Research cut Commercial Metals from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 3rd.

Insider Activity

In other news, insider Jennifer J. Durbin sold 25,050 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total value of $2,003,248.50. Following the sale, the insider directly owned 52,880 shares in the company, valued at $4,228,813.60. This represents a 32.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dennis V. Arriola acquired 2,000 shares of the company’s stock in a transaction dated Tuesday, January 20th. The shares were acquired at an average cost of $74.69 per share, with a total value of $149,380.00. Following the completion of the purchase, the director owned 9,238 shares in the company, valued at approximately $689,986.22. This represents a 27.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Commercial Metals

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Root Financial Partners LLC purchased a new position in Commercial Metals during the third quarter worth $25,000. Rothschild Investment LLC lifted its position in shares of Commercial Metals by 169.6% in the third quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company’s stock valued at $29,000 after acquiring an additional 324 shares in the last quarter. SBI Securities Co. Ltd. lifted its position in shares of Commercial Metals by 282.3% in the second quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company’s stock valued at $34,000 after acquiring an additional 511 shares in the last quarter. Spire Wealth Management boosted its stake in shares of Commercial Metals by 42.4% during the third quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock valued at $35,000 after acquiring an additional 183 shares during the last quarter. Finally, Global Retirement Partners LLC increased its position in Commercial Metals by 110.7% during the 4th quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company’s stock worth $40,000 after purchasing an additional 301 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.

Commercial Metals Stock Up 1.0%

Shares of NYSE CMC opened at $65.80 on Friday. The stock has a market capitalization of $7.30 billion, a price-to-earnings ratio of 16.96, a price-to-earnings-growth ratio of 0.35 and a beta of 1.47. Commercial Metals has a 52 week low of $37.92 and a 52 week high of $84.87. The firm has a 50-day moving average price of $75.56 and a 200 day moving average price of $66.23. The company has a quick ratio of 3.70, a current ratio of 4.47 and a debt-to-equity ratio of 0.77.

Commercial Metals (NYSE:CMC) last issued its earnings results on Thursday, January 8th. The basic materials company reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.29. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The company had revenue of $2.12 billion for the quarter, compared to analyst estimates of $2.06 billion. During the same period in the prior year, the business posted $0.78 earnings per share. The firm’s revenue for the quarter was up 11.0% compared to the same quarter last year. Equities research analysts anticipate that Commercial Metals will post 3.09 EPS for the current fiscal year.

Commercial Metals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, February 2nd. Investors of record on Monday, January 19th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Friday, January 16th. Commercial Metals’s dividend payout ratio is presently 18.56%.

About Commercial Metals

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.