Commercial Metals (NYSE:CMC) Stock Crosses Above Fifty Day Moving Average – What’s Next?

Shares of Commercial Metals Company (NYSE:CMC) crossed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $65.44 and traded as high as $66.30. Commercial Metals shares last traded at $65.5420, with a volume of 1,050,976 shares traded.

Key Stories Impacting Commercial Metals

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

• Positive Sentiment: Commercial Metals’ current-year consensus EPS estimate remains at $6.95. The company also recently exceeded quarterly earnings and revenue expectations, providing some support for the near-term outlook.
• Neutral Sentiment: Zacks Research established a FY2029 EPS estimate of $6.47, indicating expectations for continued profitability but limited earnings growth over the longer term. Commercial Metals has a price-to-earnings ratio of approximately 10.9, which may provide some valuation support.
• Negative Sentiment: Zacks Research reduced EPS estimates across multiple future periods: Q1 2027 to $1.51 from $1.82, Q3 2027 to $1.62 from $1.85, Q4 2027 to $1.67 from $2.08, and FY2027 to $6.02 from $7.21. It also lowered FY2028 EPS to $6.22 from $7.39, Q1 2028 to $1.53 from $1.84, Q2 2028 to $1.31 from $1.55, Q3 2028 to $1.57 from $1.88, and Q4 2028 to $1.81 from $2.12. The widespread reductions imply weaker expected steel-market conditions, margins, or demand and are likely weighing on the stock.

Analysts Set New Price Targets

A number of research firms have weighed in on CMC. The Goldman Sachs Group restated a “buy” rating and issued a $85.00 price target on shares of Commercial Metals in a research note on Thursday, August 6th. Zacks Research upgraded Commercial Metals from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Wells Fargo & Company reaffirmed an “underperform” rating and issued a $70.00 price target on shares of Commercial Metals in a report on Friday, October 16th. JPMorgan Chase & Co. dropped their price target on shares of Commercial Metals from $83.00 to $80.00 and set an “overweight” rating on the stock in a research note on Friday, October 9th. Finally, Bank of America cut their price objective on shares of Commercial Metals from $84.00 to $78.00 and set a “buy” rating on the stock in a report on Thursday, July 9th. Ten investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $78.73.

Commercial Metals Stock Down 2.8%

The firm’s 50 day simple moving average is $65.41 and its 200-day simple moving average is $69.21. The company has a market cap of $7.02 billion, a price-to-earnings ratio of 10.87, a P/E/G ratio of 3.89 and a beta of 1.53. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.34 and a quick ratio of 1.66.

Commercial Metals (NYSE:CMC) last posted its earnings results on Thursday, October 15th. The basic materials company reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.14. The business had revenue of $2.66 billion for the quarter, compared to analysts’ expectations of $2.56 billion. Commercial Metals had a return on equity of 17.00% and a net margin of 6.98%. The business’s revenue was up 25.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.37 earnings per share. As a group, sell-side analysts anticipate that Commercial Metals Company will post 6.95 earnings per share for the current year.

Commercial Metals Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 11th. Stockholders of record on Wednesday, October 28th will be given a dividend of $0.20 per share. The ex-dividend date is Wednesday, October 28th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.3%. Commercial Metals’s dividend payout ratio (DPR) is 13.63%.

Commercial Metals declared that its Board of Directors has approved a share repurchase plan on Wednesday, August 5th that allows the company to buy back $600 million in shares. This repurchase authorization allows the basic materials company to purchase up to 7.5% of its stock through open market purchases. Share repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Commercial Metals news, Director John McPherson purchased 1,390 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The stock was purchased at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the purchase, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. This trade represents a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.62% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Verity Asset Management Inc. boosted its position in Commercial Metals by 1.9% during the third quarter. Verity Asset Management Inc. now owns 44,545 shares of the basic materials company’s stock worth $2,766,000 after purchasing an additional 812 shares in the last quarter. AIA Group Ltd acquired a new stake in Commercial Metals in the third quarter valued at $423,000. Putney Financial Group LLC increased its position in shares of Commercial Metals by 3.4% in the third quarter. Putney Financial Group LLC now owns 5,075 shares of the basic materials company’s stock valued at $315,000 after buying an additional 167 shares in the last quarter. Vise Technologies Inc. increased its position in shares of Commercial Metals by 44.2% in the third quarter. Vise Technologies Inc. now owns 25,025 shares of the basic materials company’s stock valued at $1,554,000 after buying an additional 7,668 shares in the last quarter. Finally, MGO One Seven LLC acquired a new position in shares of Commercial Metals during the 3rd quarter worth $205,000. 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 steel and metals manufacturer, recycler and fabricator headquartered in Irving, Texas. The company produces and sells steel products used in construction, infrastructure and industrial applications, including reinforcing bar, wire rod, merchant bar, structural steel and related products.

CMC operates an integrated recycling and manufacturing model. Its recycling facilities collect and process ferrous and nonferrous scrap metal, which is used as raw material in the company’s electric-arc-furnace steel mills.