Commercial Metals (NYSE:CMC) Sets New 1-Year Low – What’s Next?

Commercial Metals (NYSE:CMC) shares hit a new 52-week low on Wednesday . The stock traded as low as $47.41 and last traded at $47.74, with a volume of 658747 shares traded. The stock had previously closed at $48.89.

Wall Street Analysts Forecast Growth

Several research firms have commented on CMC. UBS Group reiterated a “sell” rating and set a $56.00 price objective (down previously from $62.00) on shares of Commercial Metals in a research report on Thursday, December 12th. Wolfe Research cut Commercial Metals from an “outperform” rating to a “peer perform” rating in a research note on Wednesday, October 9th. Morgan Stanley assumed coverage on Commercial Metals in a research note on Thursday, December 19th. They issued an “equal weight” rating and a $65.00 price objective for the company. The Goldman Sachs Group began coverage on Commercial Metals in a report on Monday, December 2nd. They set a “buy” rating and a $75.00 price target on the stock. Finally, BMO Capital Markets dropped their price objective on shares of Commercial Metals from $62.00 to $58.00 and set a “market perform” rating for the company in a research note on Friday, January 3rd. One research analyst has rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, Commercial Metals has an average rating of “Hold” and a consensus target price of $64.17.

Commercial Metals Stock Down 2.5 %

The company has a market cap of $5.43 billion, a P/E ratio of 11.51, a P/E/G ratio of 2.74 and a beta of 1.19. The company has a 50-day simple moving average of $56.87 and a 200 day simple moving average of $54.97. The company has a current ratio of 3.94, a quick ratio of 2.78 and a debt-to-equity ratio of 0.27.

Commercial Metals (NYSE:CMC) last posted its quarterly earnings results on Monday, January 6th. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.78. The business had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.85 billion. Commercial Metals had a return on equity of 12.20% and a net margin of 6.13%. The business’s revenue was down 4.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.49 EPS. On average, equities analysts anticipate that Commercial Metals will post 4.26 EPS for the current year.

Commercial Metals Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 30th. Investors of record on Thursday, January 16th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.51%. The ex-dividend date of this dividend is Thursday, January 16th. Commercial Metals’s payout ratio is currently 17.39%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. nVerses Capital LLC purchased a new position in shares of Commercial Metals in the 3rd quarter valued at approximately $66,000. GAMMA Investing LLC increased its position in shares of Commercial Metals by 56.6% in the 4th quarter. GAMMA Investing LLC now owns 2,611 shares of the basic materials company’s stock valued at $130,000 after acquiring an additional 944 shares during the period. KBC Group NV raised its stake in Commercial Metals by 15.9% in the 3rd quarter. KBC Group NV now owns 3,099 shares of the basic materials company’s stock worth $170,000 after acquiring an additional 425 shares during the last quarter. Highland Capital Management LLC acquired a new stake in Commercial Metals during the 3rd quarter worth about $206,000. Finally, Harbor Capital Advisors Inc. increased its holdings in shares of Commercial Metals by 29.7% in the third quarter. Harbor Capital Advisors Inc. now owns 3,798 shares of the basic materials company’s stock valued at $209,000 after purchasing an additional 870 shares during the period. Hedge funds and other institutional investors own 86.90% of the company’s stock.

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.