JPMorgan Chase & Co. Cuts Commercial Metals (NYSE:CMC) Price Target to $83.00

Commercial Metals (NYSE:CMC) had its price target decreased by analysts at JPMorgan Chase & Co. from $86.00 to $83.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an “overweight” rating on the basic materials company’s stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 20.89% from the stock’s current price.

Other research analysts also recently issued reports about the stock. Citigroup decreased their target price on shares of Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a research note on Tuesday, July 7th. Wells Fargo & Company raised their target price on Commercial Metals from $77.00 to $80.00 and gave the company an “equal weight” rating in a research note on Friday, June 26th. UBS Group upgraded Commercial Metals from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $79.00 to $89.00 in a report on Wednesday, May 13th. Bank of America lowered their price objective on Commercial Metals from $84.00 to $78.00 and set a “buy” rating for the company in a research report on Thursday, July 9th. Finally, Morgan Stanley upped their target price on shares of Commercial Metals from $83.00 to $88.00 and gave the stock an “overweight” rating in a research report on Monday, June 22nd. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Commercial Metals presently has an average rating of “Moderate Buy” and a consensus price target of $81.64.

Commercial Metals Price Performance

CMC traded down $2.10 during midday trading on Wednesday, hitting $68.66. The stock had a trading volume of 353,814 shares, compared to its average volume of 1,199,913. Commercial Metals has a 1 year low of $53.08 and a 1 year high of $84.87. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. The business has a fifty day moving average of $67.96 and a 200 day moving average of $68.75. The company has a market cap of $7.60 billion, a P/E ratio of 12.93, a price-to-earnings-growth ratio of 0.37 and a beta of 1.52.

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

Commercial Metals declared that its board has initiated a share buyback program on Wednesday, August 5th that permits the company to repurchase $600.00 million in outstanding shares. This repurchase authorization permits the basic materials company to purchase up to 7.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Commercial Metals

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

Institutional Investors Weigh In On Commercial Metals

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of Commercial Metals during the 2nd quarter valued at about $954,989,000. California State Teachers Retirement System increased its holdings in shares of Commercial Metals by 6,004.4% in the second quarter. California State Teachers Retirement System now owns 8,168,168 shares of the basic materials company’s stock worth $512,553,000 after purchasing an additional 8,034,360 shares during the last quarter. State Street Corp increased its stake in Commercial Metals by 1.5% in the 4th quarter. State Street Corp now owns 6,361,477 shares of the basic materials company’s stock worth $440,341,000 after acquiring an additional 91,104 shares during the last quarter. Boston Partners increased its stake in Commercial Metals by 1.9% in the 3rd quarter. Boston Partners now owns 3,641,930 shares of the basic materials company’s stock worth $208,629,000 after acquiring an additional 67,139 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Commercial Metals by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company’s stock worth $202,626,000 after acquiring an additional 86,749 shares in the last quarter. 86.90% of the stock is owned by hedge funds and other institutional investors.

Key Commercial Metals News

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Zacks Research raised its full-year EPS forecast for fiscal 2027 to $7.18 from $7.13 and its fiscal 2028 estimate to $7.36 from $7.32. The firm also lifted individual quarterly estimates across fiscal 2027 and 2028, including fiscal 2027 first-quarter EPS to $1.81 from $1.79. These upward revisions indicate slightly improved expectations for CMC’s earnings outlook.
• Neutral Sentiment: The revisions for fiscal 2028 quarters were incremental, with estimates increasing by one cent for each affected quarter: first-quarter EPS to $1.83, second-quarter EPS to $1.55, third-quarter EPS to $1.87, and fourth-quarter EPS to $2.11. The current-year consensus remains $6.64 per share, while Zacks retains a “Hold” rating, limiting the bullish signal.
• Neutral Sentiment: Recent operating results provide supportive context: CMC’s latest quarterly EPS of $1.73 exceeded the $1.70 analyst consensus, while revenue rose 22.9% year over year to $2.48 billion. However, the current analyst updates concern periods well into fiscal 2027 and 2028, so they are unlikely to materially change near-term valuation.

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.