StockNews.com Downgrades Commercial Metals (NYSE:CMC) to Hold

StockNews.com downgraded shares of Commercial Metals (NYSE:CMC) from a buy rating to a hold rating in a research note issued to investors on Thursday morning.

A number of other analysts have also weighed in on the stock. UBS Group assumed coverage on shares of Commercial Metals in a research report on Tuesday, January 16th. They issued a buy rating and a $65.00 price objective on the stock. BMO Capital Markets increased their price objective on shares of Commercial Metals from $52.00 to $60.00 and gave the stock a market perform rating in a research report on Friday, March 22nd.

Commercial Metals Stock Performance

Commercial Metals stock opened at $55.28 on Thursday. The company has a debt-to-equity ratio of 0.27, a current ratio of 4.19 and a quick ratio of 2.69. Commercial Metals has a 1-year low of $39.85 and a 1-year high of $59.81. The firm has a market capitalization of $6.40 billion, a P/E ratio of 9.60 and a beta of 1.33. The company’s 50-day moving average is $55.39 and its 200 day moving average is $50.05.

Commercial Metals (NYSE:CMC) last posted its quarterly earnings data on Thursday, March 21st. The basic materials company reported $0.88 earnings per share for the quarter, missing analysts’ consensus estimates of $0.93 by ($0.05). Commercial Metals had a return on equity of 17.72% and a net margin of 8.09%. The firm had revenue of $1.85 billion during the quarter, compared to analysts’ expectations of $1.80 billion. During the same period last year, the company earned $1.44 earnings per share. The business’s revenue for the quarter was down 8.4% compared to the same quarter last year. Research analysts forecast that Commercial Metals will post 5.34 EPS for the current year.

Commercial Metals Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 10th. Shareholders of record on Monday, April 1st were paid a $0.18 dividend. This is an increase from Commercial Metals’s previous quarterly dividend of $0.16. This represents a $0.72 dividend on an annualized basis and a yield of 1.30%. The ex-dividend date of this dividend was Thursday, March 28th. Commercial Metals’s dividend payout ratio is currently 12.50%.

Insiders Place Their Bets

In other Commercial Metals news, Chairman Barbara Smith sold 60,166 shares of the company’s stock in a transaction dated Friday, February 2nd. The shares were sold at an average price of $51.28, for a total value of $3,085,312.48. Following the transaction, the chairman now directly owns 96,019 shares in the company, valued at approximately $4,923,854.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other news, Chairman Barbara Smith sold 60,166 shares of the stock in a transaction that occurred on Friday, February 2nd. The shares were sold at an average price of $51.28, for a total transaction of $3,085,312.48. Following the transaction, the chairman now directly owns 96,019 shares in the company, valued at $4,923,854.32. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CAO Lindsay L. Sloan sold 600 shares of the stock in a transaction that occurred on Friday, January 26th. The shares were sold at an average price of $51.52, for a total transaction of $30,912.00. Following the transaction, the chief accounting officer now owns 12,338 shares in the company, valued at $635,653.76. The disclosure for this sale can be found here. Insiders have sold 120,089 shares of company stock worth $6,402,693 in the last three months. Corporate insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Commercial Metals

Hedge funds and other institutional investors have recently modified their holdings of the business. Rise Advisors LLC bought a new position in shares of Commercial Metals during the first quarter valued at approximately $28,000. HM Payson & Co. bought a new position in shares of Commercial Metals during the third quarter valued at approximately $25,000. Point72 Asset Management L.P. purchased a new stake in Commercial Metals during the second quarter valued at approximately $30,000. Daiwa Securities Group Inc. purchased a new stake in Commercial Metals during the fourth quarter valued at approximately $30,000. Finally, Quarry LP purchased a new stake in Commercial Metals during the first quarter valued at approximately $30,000. 86.90% of the stock is currently owned by institutional investors.

Commercial Metals Company Profile

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.