Bank of New York Mellon Corp Makes New $59.57 Million Investment in Commercial Metals Company $CMC

Bank of New York Mellon Corp bought a new position in shares of Commercial Metals Company (NYSE:CMC) during the second quarter, Holdings Channel.com reports. The fund bought 949,359 shares of the basic materials company’s stock, valued at approximately $59,572,000.

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

Commercial Metals Stock Performance

Shares of CMC opened at $68.35 on Thursday. The stock has a market capitalization of $7.56 billion, a P/E ratio of 12.87, a P/E/G ratio of 0.38 and a beta of 1.52. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. Commercial Metals Company has a 1 year low of $53.08 and a 1 year high of $84.87. The company’s fifty day moving average is $68.19 and its two-hundred day moving average is $69.51.

Commercial Metals (NYSE:CMC) last issued its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share 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 for the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter in the previous year, the firm earned $0.74 earnings per share. The business’s quarterly revenue was up 22.9% compared to the same quarter last year. On average, sell-side analysts predict that Commercial Metals Company will post 6.64 earnings per share for the current year.

Commercial Metals Announces Dividend

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

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

Analyst Upgrades and Downgrades

Several brokerages have issued reports on CMC. BMO Capital Markets raised their price objective on shares of Commercial Metals from $77.00 to $80.00 and gave the stock a “market perform” rating in a research report on Thursday, August 6th. BNP Paribas Exane upgraded shares of Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 target price for the company in a research note on Wednesday, July 8th. Citigroup lowered their price target on Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. Morgan Stanley boosted their price target on Commercial Metals from $83.00 to $88.00 and gave the company an “overweight” rating in a research report on Monday, June 22nd. Finally, Weiss Ratings upgraded Commercial Metals from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Ten equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $81.18.

Insider Buying and Selling

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

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.