Foster & Motley Inc. Takes Position in Commercial Metals Company $CMC

Foster & Motley Inc. acquired a new position in shares of Commercial Metals Company (NYSE:CMC) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 8,909 shares of the basic materials company’s stock, valued at approximately $559,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Royal Bank of Canada boosted its stake in Commercial Metals by 1.4% during the first quarter. Royal Bank of Canada now owns 90,989 shares of the basic materials company’s stock worth $4,186,000 after buying an additional 1,219 shares in the last quarter. Amundi raised its stake in shares of Commercial Metals by 13.3% in the 1st quarter. Amundi now owns 2,480 shares of the basic materials company’s stock valued at $114,000 after buying an additional 291 shares in the last quarter. Jones Financial Companies Lllp lifted its holdings in shares of Commercial Metals by 614.9% during the 1st quarter. Jones Financial Companies Lllp now owns 11,767 shares of the basic materials company’s stock worth $541,000 after acquiring an additional 10,121 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Commercial Metals by 5.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,033,514 shares of the basic materials company’s stock worth $47,552,000 after acquiring an additional 56,875 shares during the period. Finally, Empowered Funds LLC boosted its position in shares of Commercial Metals by 1.8% during the 1st quarter. Empowered Funds LLC now owns 53,305 shares of the basic materials company’s stock valued at $2,453,000 after acquiring an additional 941 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Barclays increased their price target on shares of Commercial Metals from $75.00 to $80.00 and gave the stock an “equal weight” rating in a research report on Friday, August 7th. Zacks Research upgraded Commercial Metals from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Morgan Stanley increased their target price on Commercial Metals from $83.00 to $88.00 and gave the stock an “overweight” rating in a report on Monday, June 22nd. The Goldman Sachs Group restated a “buy” rating and set a $85.00 target price on shares of Commercial Metals in a research report on Thursday, August 6th. Finally, BNP Paribas Exane raised Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 price target on the stock in a research note on Wednesday, July 8th. Ten research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $81.18.

Insiders Place Their Bets

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

Commercial Metals Price Performance

NYSE:CMC opened at $68.31 on Thursday. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73. The firm has a market cap of $7.56 billion, a PE ratio of 12.86, a price-to-earnings-growth ratio of 0.41 and a beta of 1.52. Commercial Metals Company has a 12 month low of $53.08 and a 12 month high of $84.87. The company’s 50-day moving average price is $69.21 and its two-hundred day moving average price is $70.01.

Commercial Metals (NYSE:CMC) last announced its 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 return on equity of 15.69% and a net margin of 6.72%.The business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the previous year, the business earned $0.74 EPS. Commercial Metals’s revenue was up 22.9% compared to the same quarter last year. On average, equities analysts anticipate that Commercial Metals Company will post 6.64 EPS for the current fiscal year.

Commercial Metals Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were paid a $0.20 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. Commercial Metals’s payout ratio is currently 15.07%.

Commercial Metals announced that its Board of Directors has authorized a stock buyback program on Wednesday, August 5th that permits the company to buyback $600.00 million in shares. This buyback authorization permits the basic materials company to repurchase up to 7.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Commercial Metals 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.