Bank of America Corp DE Boosts Stock Position in Commercial Metals Company $CMC

Bank of America Corp DE lifted its stake in shares of Commercial Metals Company (NYSE:CMC) by 87.4% in the first quarter, HoldingsChannel reports. The fund owned 1,631,213 shares of the basic materials company’s stock after acquiring an additional 760,985 shares during the period. Bank of America Corp DE’s holdings in Commercial Metals were worth $100,205,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Artemis Investment Management LLP purchased a new position in Commercial Metals during the fourth quarter valued at $103,962,000. Norges Bank purchased a new stake in Commercial Metals during the 4th quarter valued at $97,983,000. Encompass Capital Advisors LLC bought a new stake in Commercial Metals in the fourth quarter worth $41,523,000. Merewether Investment Management LP bought a new stake in Commercial Metals in the third quarter worth $26,847,000. Finally, UBS Group AG boosted its stake in Commercial Metals by 41.8% during the third quarter. UBS Group AG now owns 1,521,130 shares of the basic materials company’s stock worth $87,130,000 after buying an additional 448,083 shares during the period. 86.90% of the stock is currently owned by institutional investors.

Insider Activity at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt acquired 8,230 shares of the stock in a transaction dated Friday, July 10th. The stock was purchased at an average price of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer directly owned 181,522 shares of the company’s stock, valued at $11,127,298.60. This trade represents a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.62% of the company’s stock.

Commercial Metals Price Performance

CMC opened at $75.17 on Friday. The business’s 50-day moving average is $69.80 and its two-hundred day moving average is $70.32. Commercial Metals Company has a 1 year low of $52.74 and a 1 year high of $84.87. 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 capitalization of $8.32 billion, a PE ratio of 14.16, a price-to-earnings-growth ratio of 0.42 and a beta of 1.52.

Commercial Metals (NYSE:CMC) last released its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 EPS for the quarter, beating 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 business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period in the prior year, the firm posted $0.74 earnings per share. The company’s quarterly revenue was up 22.9% on a year-over-year basis. Research analysts anticipate that Commercial Metals Company will post 6.64 earnings per share for the current fiscal year.

Commercial Metals declared that its board has initiated a stock buyback plan on Wednesday, August 5th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Commercial Metals Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Monday, July 6th. Commercial Metals’s payout ratio is currently 15.07%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CMC. BNP Paribas Exane raised shares of Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 price objective on the stock in a research report on Wednesday, July 8th. UBS Group upgraded Commercial Metals from a “neutral” rating to a “buy” rating and increased their price target for the stock from $79.00 to $89.00 in a report on Wednesday, May 13th. Jefferies Financial Group upgraded Commercial Metals from a “buy” rating to a “buy” rating in a report on Friday, June 5th. Citigroup cut their price objective on Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Tuesday, July 7th. Finally, JPMorgan Chase & Co. reduced their target price on Commercial Metals from $83.00 to $78.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 14th. Ten equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $81.18.

Commercial Metals News Summary

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

• Positive Sentiment: Share buyback supports the stock: Commercial Metals authorized a program to repurchase up to $600 million of its outstanding shares, representing as much as 7.5% of the company’s stock. The authorization signals management believes the shares are undervalued and could support earnings per share by reducing the share count. Commercial Metals to Repurchase $600 Million in Outstanding Shares
• Positive Sentiment: Zacks raises longer-term EPS estimates: Zacks Research increased its forecasts across several periods, including Q1 2027 EPS to $1.79 from $1.77, FY2027 EPS to $7.13 from $7.08, and FY2028 EPS to $7.32 from $7.27. Estimates for Q4 2027, Q1-Q3 2028 were also raised by $0.01 per share, suggesting slightly improved expectations for future profitability.
• Neutral Sentiment: Analyst target rises, but rating remains cautious: BMO Capital Markets lifted its price target for CMC from $77 to $80 while maintaining a “Market Perform” rating. The higher target offers moderate potential upside, but the unchanged rating indicates BMO does not expect substantial outperformance relative to the broader market. BMO Capital Markets Raises Commercial Metals Price Target

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.