Commercial Metals (NYSE:CMC) Sets New 12-Month Low After Analyst Downgrade

Commercial Metals (NYSE:CMC) hit a new 52-week low on Monday after Morgan Stanley lowered their price target on the stock from $56.00 to $53.00. Morgan Stanley currently has an equal weight rating on the stock. Commercial Metals traded as low as $43.37 and last traded at $43.47, with a volume of 277378 shares trading hands. The stock had previously closed at $45.86.

Several other equities research analysts have also recently commented on the stock. UBS Group upgraded shares of Commercial Metals from a “sell” rating to a “neutral” rating and dropped their price target for the stock from $56.00 to $54.00 in a research report on Friday, January 10th. BNP Paribas downgraded Commercial Metals from an “outperform” rating to a “neutral” rating in a report on Friday, January 3rd. The Goldman Sachs Group began coverage on shares of Commercial Metals in a research note on Monday, December 2nd. They issued a “buy” rating and a $75.00 price objective on the stock. Jefferies Financial Group dropped their target price on Commercial Metals from $65.00 to $62.00 and set a “buy” rating on the stock in a research report on Monday, January 6th. Finally, BMO Capital Markets dropped their target price on Commercial Metals from $62.00 to $58.00 and set a “market perform” rating on the stock in a research report on Friday, January 3rd. Six equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $61.83.

Institutional Trading of Commercial Metals

Hedge funds have recently added to or reduced their stakes in the business. Park Square Financial Group LLC bought a new stake in Commercial Metals during the 4th quarter valued at approximately $33,000. Heck Capital Advisors LLC bought a new position in shares of Commercial Metals during the 4th quarter worth approximately $34,000. V Square Quantitative Management LLC increased its holdings in Commercial Metals by 60.7% during the 4th quarter. V Square Quantitative Management LLC now owns 707 shares of the basic materials company’s stock valued at $35,000 after purchasing an additional 267 shares in the last quarter. South Plains Financial Inc. acquired a new stake in Commercial Metals during the 4th quarter valued at $73,000. Finally, Jones Financial Companies Lllp increased its holdings in Commercial Metals by 22.0% during the 4th quarter. Jones Financial Companies Lllp now owns 1,646 shares of the basic materials company’s stock valued at $82,000 after purchasing an additional 297 shares in the last quarter. Institutional investors own 86.90% of the company’s stock.

Commercial Metals Price Performance

The company has a 50 day moving average price of $49.37 and a 200 day moving average price of $53.20. The company has a market capitalization of $4.91 billion, a price-to-earnings ratio of 38.95, a PEG ratio of 2.62 and a beta of 1.17. The company has a current ratio of 2.76, a quick ratio of 1.94 and a debt-to-equity ratio of 0.29.

Commercial Metals (NYSE:CMC) last released its earnings results on Monday, January 6th. The basic materials company reported $0.78 EPS for the quarter, meeting the consensus estimate of $0.78. Commercial Metals had a return on equity of 9.88% and a net margin of 1.70%. The company had revenue of $1.91 billion during the quarter, compared to analysts’ expectations of $1.85 billion. During the same period last year, the firm earned $1.49 EPS. The business’s revenue for the quarter was down 4.7% on a year-over-year basis. As a group, equities research analysts forecast that Commercial Metals will post 3.09 earnings per share for the current year.

Commercial Metals Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 30th. Investors of record on Thursday, January 16th were paid a dividend of $0.18 per share. The ex-dividend date was Thursday, January 16th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.67%. Commercial Metals’s dividend payout ratio (DPR) is presently 64.86%.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.