Commercial Metals (NYSE:CMC) Issues Earnings Results, Beats Estimates By $0.43 EPS

Commercial Metals (NYSE:CMC) released its quarterly earnings results on Thursday. The basic materials company reported $1.84 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.43, Zacks reports. Commercial Metals had a return on equity of 8.76% and a net margin of 1.09%.

Commercial Metals Stock Performance

Shares of Commercial Metals stock opened at $73.31 on Thursday. The company has a quick ratio of 2.03, a current ratio of 2.78 and a debt-to-equity ratio of 0.31. The stock’s fifty day moving average is $65.15 and its two-hundred day moving average is $59.07. Commercial Metals has a 52 week low of $37.92 and a 52 week high of $75.03. The company has a market capitalization of $8.14 billion, a PE ratio of 96.46, a price-to-earnings-growth ratio of 0.41 and a beta of 1.49.

Commercial Metals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Monday, January 19th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, January 16th. Commercial Metals’s dividend payout ratio is 94.74%.

Analysts Set New Price Targets

CMC has been the topic of a number of recent research reports. Wells Fargo & Company upped their price target on shares of Commercial Metals from $68.00 to $79.00 and gave the company an “overweight” rating in a research note on Monday, December 15th. Citigroup upgraded shares of Commercial Metals from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $60.00 to $65.00 in a report on Friday, October 17th. Bank of America increased their price target on shares of Commercial Metals from $60.00 to $70.00 and gave the company a “buy” rating in a report on Monday, September 15th. Morgan Stanley upgraded Commercial Metals from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $57.50 to $68.00 in a research report on Friday, October 24th. Finally, Wall Street Zen upgraded Commercial Metals from a “buy” rating to a “strong-buy” rating in a research report on Friday, November 28th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $68.30.

Insider Activity

In related news, Director John R. Mcpherson purchased 1,722 shares of the business’s stock in a transaction dated Monday, October 20th. The shares were purchased at an average cost of $58.09 per share, for a total transaction of $100,030.98. Following the completion of the acquisition, the director owned 6,722 shares in the company, valued at approximately $390,480.98. This trade represents a 34.44% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Commercial Metals

Several large investors have recently added to or reduced their stakes in the stock. Merewether Investment Management LP bought a new position in Commercial Metals in the third quarter worth about $26,847,000. UBS Group AG raised its stake in shares of Commercial Metals by 41.8% during the 3rd quarter. UBS Group AG now owns 1,521,130 shares of the basic materials company’s stock worth $87,130,000 after acquiring an additional 448,083 shares in the last quarter. Millennium Management LLC lifted its position in Commercial Metals by 44.2% during the third quarter. Millennium Management LLC now owns 1,013,517 shares of the basic materials company’s stock valued at $58,054,000 after acquiring an additional 310,431 shares during the last quarter. AQR Capital Management LLC boosted its stake in Commercial Metals by 36.1% in the second quarter. AQR Capital Management LLC now owns 819,735 shares of the basic materials company’s stock valued at $40,093,000 after acquiring an additional 217,246 shares in the last quarter. Finally, Natixis Advisors LLC grew its holdings in Commercial Metals by 942.5% in the third quarter. Natixis Advisors LLC now owns 189,473 shares of the basic materials company’s stock worth $10,853,000 after purchasing an additional 171,299 shares during the last quarter. 86.90% of the stock is owned by hedge funds and other institutional investors.

Commercial Metals Company 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.