Zacks Research Cuts Earnings Estimates for Commercial Metals

Commercial Metals Company (NYSE:CMC) – Analysts at Zacks Research cut their Q1 2027 earnings per share estimates for shares of Commercial Metals in a note issued to investors on Thursday, October 29th. Zacks Research analyst Team now forecasts that the basic materials company will post earnings of $1.51 per share for the quarter, down from their previous estimate of $1.82. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Commercial Metals’ current full-year earnings is $6.71 per share. Zacks Research also issued estimates for Commercial Metals’ Q3 2027 earnings at $1.62 EPS, Q4 2027 earnings at $1.67 EPS, FY2027 earnings at $6.02 EPS, Q1 2028 earnings at $1.53 EPS, Q3 2028 earnings at $1.57 EPS, Q4 2028 earnings at $1.81 EPS, FY2028 earnings at $6.22 EPS and FY2029 earnings at $6.47 EPS.

Several other research firms have also recently issued reports on CMC. BMO Capital Markets cut their price target on shares of Commercial Metals from $75.00 to $73.00 and set a “market perform” rating on the stock in a report on Monday, October 19th. Wall Street Zen lowered Commercial Metals from a “buy” rating to a “hold” rating in a research report on Saturday, October 17th. BNP Paribas Exane upgraded Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 price objective on the stock in a research note on Wednesday, July 8th. Weiss Ratings raised Commercial Metals from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 16th. Finally, Citigroup dropped their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $78.73.

Commercial Metals Price Performance

CMC stock opened at $65.78 on Monday. The company has a current ratio of 2.34, a quick ratio of 1.66 and a debt-to-equity ratio of 0.71. Commercial Metals has a 12-month low of $55.97 and a 12-month high of $84.87. The stock has a 50-day moving average price of $65.40 and a two-hundred day moving average price of $69.17. The company has a market cap of $7.23 billion, a PE ratio of 11.21, a price-to-earnings-growth ratio of 3.80 and a beta of 1.53.

Commercial Metals (NYSE:CMC) last released its earnings results on Thursday, October 15th. The basic materials company reported $2.09 EPS for the quarter, beating the consensus estimate of $1.95 by $0.14. Commercial Metals had a return on equity of 17.00% and a net margin of 6.98%. The firm had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.56 billion. During the same period in the prior year, the firm posted $1.37 earnings per share. The business’s quarterly revenue was up 25.7% compared to the same quarter last year.

Commercial Metals announced that its Board of Directors has approved a share buyback program on Wednesday, August 5th that allows the company to repurchase $600 million in shares. This buyback authorization allows the basic materials company to repurchase up to 7.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its shares are undervalued.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 11th. Shareholders of record on Wednesday, October 28th will be given a $0.20 dividend. The ex-dividend date is Wednesday, October 28th. This represents a $0.80 annualized dividend and a yield of 1.2%. Commercial Metals’s payout ratio is 13.63%.

Insider Buying and Selling

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

Institutional Trading of Commercial Metals

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of Commercial Metals during the second quarter valued at approximately $954,989,000. Bank of America Corp DE grew its holdings in shares of Commercial Metals by 87.4% during the first quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company’s stock valued at $100,205,000 after buying an additional 760,985 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Commercial Metals by 0.9% during the first quarter. Bank of New York Mellon Corp now owns 977,024 shares of the basic materials company’s stock valued at $60,019,000 after buying an additional 8,911 shares in the last quarter. Van ECK Associates Corp grew its holdings in shares of Commercial Metals by 180.2% during the second quarter. Van ECK Associates Corp now owns 786,142 shares of the basic materials company’s stock valued at $49,330,000 after buying an additional 505,599 shares in the last quarter. Finally, Jupiter Topco LLC purchased a new stake in Commercial Metals in the 2nd quarter worth about $36,800,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

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.