Commercial Metals (NYSE:CMC) Reaches New 52-Week High – Here’s Why

Commercial Metals Company (NYSE:CMC)’s stock price reached a new 52-week high during trading on Tuesday . The company traded as high as $64.56 and last traded at $64.1810, with a volume of 18588 shares traded. The stock had previously closed at $64.08.

Wall Street Analysts Forecast Growth

CMC has been the subject of a number of research reports. The Goldman Sachs Group lifted their price objective on Commercial Metals from $69.00 to $76.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. Citigroup raised shares of Commercial Metals from a “neutral” rating to a “buy” rating and raised their price objective for the company from $60.00 to $65.00 in a research note on Friday, October 17th. Morgan Stanley raised shares of Commercial Metals from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $57.50 to $68.00 in a research note on Friday, October 24th. Jefferies Financial Group set a $70.00 price target on shares of Commercial Metals and gave the company a “hold” rating in a research report on Wednesday, October 22nd. Finally, Bank of America upped their price objective on Commercial Metals from $60.00 to $70.00 and gave the stock a “buy” rating in a research report on Monday, September 15th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Commercial Metals has an average rating of “Moderate Buy” and an average target price of $64.20.

Commercial Metals Stock Performance

The company has a market cap of $7.10 billion, a price-to-earnings ratio of 84.07, a price-to-earnings-growth ratio of 1.94 and a beta of 1.34. The firm has a 50-day simple moving average of $59.29 and a 200 day simple moving average of $55.07. The company has a quick ratio of 2.03, a current ratio of 2.78 and a debt-to-equity ratio of 0.31.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings results on Thursday, October 16th. The basic materials company reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.05. The firm had revenue of $2.11 billion for the quarter, compared to analysts’ expectations of $2.10 billion. Commercial Metals had a return on equity of 8.76% and a net margin of 1.09%.The firm’s revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.90 EPS. On average, sell-side analysts predict that Commercial Metals Company will post 3.09 earnings per share for the current fiscal year.

Commercial Metals Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, November 13th. Stockholders of record on Thursday, October 30th were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Thursday, October 30th. Commercial Metals’s dividend payout ratio is 94.74%.

Insider Buying and Selling at Commercial Metals

In other news, Director John R. Mcpherson acquired 1,722 shares of the stock in a transaction that occurred on Monday, October 20th. The shares were purchased at an average cost of $58.09 per share, for a total transaction of $100,030.98. Following the transaction, the director directly owned 6,722 shares in the company, valued at approximately $390,480.98. This represents a 34.44% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. 0.46% of the stock is currently owned by corporate insiders.

Institutional Trading of Commercial Metals

Hedge funds have recently made changes to their positions in the company. National Bank of Canada FI increased its stake in shares of Commercial Metals by 80.3% during the first quarter. National Bank of Canada FI now owns 548 shares of the basic materials company’s stock worth $25,000 after acquiring an additional 244 shares during the period. Root Financial Partners LLC purchased a new stake in Commercial Metals in the 3rd quarter valued at approximately $25,000. Rothschild Investment LLC boosted its holdings in Commercial Metals by 169.6% in the 3rd quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company’s stock valued at $29,000 after purchasing an additional 324 shares in the last quarter. SBI Securities Co. Ltd. increased its position in Commercial Metals by 282.3% during the 2nd quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company’s stock worth $34,000 after purchasing an additional 511 shares during the period. Finally, Spire Wealth Management lifted its holdings in shares of Commercial Metals by 42.4% in the 3rd quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock valued at $35,000 after buying an additional 183 shares during the period. Institutional investors and hedge funds 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.