Commercial Metals (NYSE:CMC) Shares Gap Up – Should You Buy?

Shares of Commercial Metals (NYSE:CMC) gapped up before the market opened on Monday . The stock had previously closed at $49.63, but opened at $52.35. Commercial Metals shares last traded at $51.14, with a volume of 124,929 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Jefferies Financial Group reduced their price target 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. Morgan Stanley dropped their price objective on Commercial Metals from $65.00 to $56.00 and set an “equal weight” rating on the stock in a report on Monday, February 3rd. BMO Capital Markets dropped their price objective on Commercial Metals from $62.00 to $58.00 and set a “market perform” rating on the stock in a report on Friday, January 3rd. UBS Group raised Commercial Metals from a “sell” rating to a “neutral” rating and dropped their price objective for the company from $56.00 to $54.00 in a report on Friday, January 10th. Finally, BNP Paribas lowered Commercial Metals from an “outperform” rating to a “neutral” rating in a report on Friday, January 3rd. Six research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $62.33.

Commercial Metals Price Performance

The stock has a 50 day simple moving average of $51.68 and a two-hundred day simple moving average of $53.94. The company has a market cap of $5.67 billion, a price-to-earnings ratio of 44.94, a price-to-earnings-growth ratio of 2.58 and a beta of 1.18. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.76 and a quick ratio of 1.94.

Commercial Metals (NYSE:CMC) last released its quarterly earnings data on Monday, January 6th. The basic materials company reported $0.78 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.78. The company had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.85 billion. Commercial Metals had a return on equity of 9.88% and a net margin of 1.70%. The firm’s revenue for the quarter was down 4.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.49 earnings per share. On average, equities research analysts predict that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 30th. Shareholders of record on Thursday, January 16th were given a $0.18 dividend. The ex-dividend date was Thursday, January 16th. This represents a $0.72 dividend on an annualized basis and a yield of 1.44%. Commercial Metals’s dividend payout ratio is currently 64.86%.

Institutional Investors Weigh In On Commercial Metals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CMC. Heck Capital Advisors LLC acquired a new position in Commercial Metals during the 4th quarter worth $34,000. V Square Quantitative Management LLC grew its stake 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 worth $35,000 after purchasing an additional 267 shares in the last quarter. nVerses Capital LLC acquired a new position in Commercial Metals during the 3rd quarter worth $66,000. Jones Financial Companies Lllp grew its stake 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 worth $82,000 after purchasing an additional 297 shares in the last quarter. Finally, Amundi grew its stake in Commercial Metals by 29.9% during the 4th quarter. Amundi now owns 2,189 shares of the basic materials company’s stock worth $108,000 after purchasing an additional 504 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.

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.