Commercial Metals (NYSE:CMC) Shares Gap Down After Earnings Miss

Commercial Metals (NYSE:CMC) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $46.86, but opened at $45.13. Commercial Metals shares last traded at $46.85, with a volume of 162,781 shares traded.

The basic materials company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.05). Commercial Metals had a return on equity of 9.88% and a net margin of 1.70%. The company had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same period last year, the business earned $0.88 earnings per share. The firm’s revenue was down 5.1% compared to the same quarter last year.

Commercial Metals Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 9th. Shareholders of record on Monday, March 31st will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.54%. The ex-dividend date is Monday, March 31st. Commercial Metals’s dividend payout ratio (DPR) is presently 64.86%.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on CMC shares. Morgan Stanley cut their target price on Commercial Metals from $56.00 to $53.00 and set an “equal weight” rating for the company in a research note on Friday, March 7th. Jefferies Financial Group cut their price objective on Commercial Metals from $65.00 to $62.00 and set a “buy” rating for the company in a research report on Monday, January 6th. BMO Capital Markets cut their price objective on Commercial Metals from $58.00 to $54.00 and set a “market perform” rating for the company in a research report on Friday. UBS Group raised Commercial Metals from a “sell” rating to a “neutral” rating and cut their price objective for the stock from $56.00 to $54.00 in a research report on Friday, January 10th. Finally, The Goldman Sachs Group initiated coverage on Commercial Metals in a research report on Monday, December 2nd. They set a “buy” rating and a $75.00 price objective for the company. Six research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat, Commercial Metals currently has a consensus rating of “Hold” and an average target price of $61.17.

Hedge Funds Weigh In On Commercial Metals

Hedge funds and other institutional investors have recently bought and sold shares of the company. Park Square Financial Group LLC purchased a new position in Commercial Metals during the 4th quarter valued at about $33,000. Heck Capital Advisors LLC purchased a new position in Commercial Metals during the 4th quarter valued at about $34,000. V Square Quantitative Management LLC boosted 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 acquiring an additional 267 shares during the period. South Plains Financial Inc. purchased a new position in Commercial Metals during the 4th quarter valued at about $73,000. Finally, Jones Financial Companies Lllp boosted 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 acquiring an additional 297 shares during the period. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Commercial Metals Stock Down 1.5 %

The business has a fifty day moving average of $48.86 and a 200 day moving average of $52.72. The company has a market capitalization of $5.30 billion, a PE ratio of 42.04, 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.

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.