Commercial Metals (NYSE:CMC) Trading Down 4.1% – Here’s Why

Commercial Metals (NYSE:CMC) fell 4.1% during trading on Thursday . The company traded as low as $58.98 and last traded at $59.05. 121,510 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 850,374 shares. The stock had previously closed at $61.60.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. UBS Group reaffirmed a “sell” rating and issued a $56.00 target price (down from $62.00) on shares of Commercial Metals in a report on Thursday. The Goldman Sachs Group assumed 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. Wolfe Research lowered Commercial Metals from an “outperform” rating to a “peer perform” rating in a report on Wednesday, October 9th. BMO Capital Markets set a $62.00 price target on Commercial Metals and gave the stock a “market perform” rating in a research note on Friday, October 18th. Finally, Jefferies Financial Group started coverage on shares of Commercial Metals in a research report on Tuesday, September 3rd. They issued a “buy” rating and a $65.00 price objective on the stock. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $65.40.

Commercial Metals Trading Down 2.4 %

The company has a current ratio of 3.94, a quick ratio of 2.78 and a debt-to-equity ratio of 0.27. The business has a 50 day moving average price of $57.90 and a 200-day moving average price of $55.22. The firm has a market capitalization of $6.53 billion, a PE ratio of 13.82, a P/E/G ratio of 2.74 and a beta of 1.15.

Commercial Metals (NYSE:CMC) last released its earnings results on Thursday, October 17th. The basic materials company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.01). The business had revenue of $2 billion during the quarter, compared to analyst estimates of $2.07 billion. Commercial Metals had a net margin of 6.13% and a return on equity of 12.20%. Analysts expect that Commercial Metals will post 4.26 earnings per share for the current year.

Commercial Metals Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, November 14th. Investors of record on Thursday, October 31st were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.26%. The ex-dividend date of this dividend was Thursday, October 31st. Commercial Metals’s dividend payout ratio is currently 17.39%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CMC. nVerses Capital LLC acquired a new stake in shares of Commercial Metals in the 3rd quarter worth approximately $66,000. Archer Investment Corp acquired a new stake in Commercial Metals in the second quarter valued at $77,000. KBC Group NV increased its position in shares of Commercial Metals by 15.9% in the third quarter. KBC Group NV now owns 3,099 shares of the basic materials company’s stock valued at $170,000 after buying an additional 425 shares in the last quarter. Innealta Capital LLC acquired a new position in shares of Commercial Metals during the 2nd quarter worth $195,000. Finally, Highland Capital Management LLC purchased a new stake in shares of Commercial Metals in the 3rd quarter worth about $206,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

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.