Commercial Metals Company (NYSE:CMC) Receives $72.70 Consensus Target Price from Brokerages

Shares of Commercial Metals Company (NYSE:CMC) have been assigned an average rating of “Moderate Buy” from the twelve brokerages that are currently covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, eight have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $72.70.

A number of research analysts have weighed in on the company. The Goldman Sachs Group reissued a “buy” rating and set a $84.00 price target on shares of Commercial Metals in a research note on Tuesday, December 30th. UBS Group reiterated a “neutral” rating on shares of Commercial Metals in a research report on Monday, October 27th. Wells Fargo & Company raised their price target on Commercial Metals from $68.00 to $79.00 and gave the stock an “overweight” rating in a research note on Monday, December 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Commercial Metals in a research note on Wednesday, October 8th. Finally, Zacks Research upgraded shares of Commercial Metals from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 14th.

Commercial Metals Price Performance

NYSE:CMC opened at $74.47 on Friday. Commercial Metals has a 12-month low of $37.92 and a 12-month high of $76.21. The firm has a market cap of $8.26 billion, a price-to-earnings ratio of 19.19, a price-to-earnings-growth ratio of 0.39 and a beta of 1.49. The company’s 50-day moving average is $67.29 and its two-hundred day moving average is $60.29. The company has a current ratio of 4.47, a quick ratio of 3.70 and a debt-to-equity ratio of 0.77.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings results on Thursday, January 8th. The basic materials company reported $1.84 EPS for the quarter, topping analysts’ consensus estimates of $1.55 by $0.29. The business had revenue of $2.12 billion during the quarter, compared to the consensus estimate of $2.06 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The company’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.78 earnings per share. Research analysts expect that Commercial Metals will post 3.09 EPS for the current year.

Commercial Metals Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Monday, January 19th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, January 16th. This represents a $0.72 annualized dividend and a dividend yield of 1.0%. Commercial Metals’s payout ratio is currently 18.56%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Drummond Knight Asset Management Pty Ltd acquired a new stake in shares of Commercial Metals during the third quarter worth $15,579,000. Allspring Global Investments Holdings LLC increased its stake in Commercial Metals by 11.1% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 225,817 shares of the basic materials company’s stock worth $13,312,000 after purchasing an additional 22,587 shares in the last quarter. Hodges Capital Management Inc. raised its holdings in Commercial Metals by 3.4% during the 2nd quarter. Hodges Capital Management Inc. now owns 251,468 shares of the basic materials company’s stock worth $12,299,000 after buying an additional 8,267 shares during the period. Rhumbline Advisers lifted its stake in Commercial Metals by 1.3% during the second quarter. Rhumbline Advisers now owns 393,334 shares of the basic materials company’s stock valued at $19,238,000 after buying an additional 5,147 shares in the last quarter. Finally, Nordea Investment Management AB boosted its holdings in shares of Commercial Metals by 28.9% in the second quarter. Nordea Investment Management AB now owns 318,575 shares of the basic materials company’s stock worth $15,830,000 after buying an additional 71,350 shares during the period. 86.90% of the stock is owned by hedge funds and other institutional investors.

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.