The Goldman Sachs Group Initiates Coverage on Commercial Metals (NYSE:CMC)

Investment analysts at The Goldman Sachs Group began coverage on shares of Commercial Metals (NYSE:CMC) in a research note issued on Wednesday. The brokerage set a “neutral” rating and a $74.00 price target on the basic materials company’s stock. The Goldman Sachs Group’s target price would suggest a potential upside of 20.57% from the company’s current price.

A number of other analysts have also weighed in on CMC. Morgan Stanley increased their price objective on shares of Commercial Metals from $68.00 to $85.00 and gave the stock an “overweight” rating in a research note on Friday, January 9th. KeyCorp began coverage on shares of Commercial Metals in a report on Wednesday, March 25th. They issued a “sector weight” rating on the stock. Citigroup lifted their price objective on Commercial Metals from $65.00 to $85.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Weiss Ratings restated a “hold (c)” rating on shares of Commercial Metals in a research note on Wednesday, January 21st. Finally, Wells Fargo & Company reduced their price target on Commercial Metals from $80.00 to $77.00 and set an “overweight” rating for the company in a research report on Friday, March 27th. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $72.00.

Commercial Metals Trading Up 2.1%

Commercial Metals stock opened at $61.38 on Wednesday. The stock has a 50-day moving average price of $72.03 and a 200 day moving average price of $66.65. The company has a market capitalization of $6.81 billion, a price-to-earnings ratio of 13.67, a price-to-earnings-growth ratio of 0.33 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 company has a quick ratio of 1.55, a current ratio of 2.38 and a debt-to-equity ratio of 0.75.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.12). Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The business had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.10 billion. During the same quarter last year, the company posted $0.26 EPS. Commercial Metals’s quarterly revenue was up 21.5% compared to the same quarter last year. Sell-side analysts anticipate that Commercial Metals will post 3.09 EPS for the current year.

Insider Activity

In other Commercial Metals news, insider Jennifer J. Durbin sold 25,050 shares of the firm’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was 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 of the company’s stock, valued at approximately $4,228,813.60. This trade represents a 32.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dennis V. Arriola bought 2,000 shares of Commercial Metals 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 trade represents a 27.63% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.62% of the stock is owned by insiders.

Hedge Funds Weigh In On Commercial Metals

A number of large investors have recently added to or reduced their stakes in the stock. Artemis Investment Management LLP purchased a new stake in shares of Commercial Metals during the fourth quarter worth about $103,962,000. Norges Bank acquired a new stake in Commercial Metals in the 2nd quarter worth about $70,402,000. Vaughan Nelson Investment Management L.P. acquired a new position in shares of Commercial Metals during the third quarter valued at approximately $54,394,000. Encompass Capital Advisors LLC purchased a new position in shares of Commercial Metals in the second quarter valued at approximately $34,225,000. Finally, Merewether Investment Management LP acquired a new stake in shares of Commercial Metals in the third quarter worth approximately $26,847,000. 86.90% of the stock is currently owned by institutional investors and hedge funds.

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.