Commercial Metals (NYSE:CMC) Hits New 12-Month Low – What’s Next?

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

Analysts Set New Price Targets

Several research analysts recently weighed in on CMC shares. Morgan Stanley assumed coverage on shares of Commercial Metals in a report on Thursday, December 19th. They set an “equal weight” rating and a $65.00 price target on the stock. Wolfe Research downgraded Commercial Metals from an “outperform” rating to a “peer perform” rating in a research note on Wednesday, October 9th. Jefferies Financial Group decreased 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. UBS Group upgraded Commercial Metals from a “sell” rating to a “neutral” rating and dropped their price target for the stock from $56.00 to $54.00 in a report on Friday. Finally, The Goldman Sachs Group began coverage on Commercial Metals in a research note on Monday, December 2nd. They issued a “buy” rating and a $75.00 price objective for the company. Six analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $63.83.

Commercial Metals Trading Down 1.2 %

The company has a debt-to-equity ratio of 0.27, a current ratio of 3.94 and a quick ratio of 2.78. The firm has a fifty day simple moving average of $56.61 and a two-hundred day simple moving average of $54.87. The firm has a market capitalization of $5.36 billion, a P/E ratio of 11.36, a price-to-earnings-growth ratio of 2.74 and a beta of 1.19.

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

Commercial Metals Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 30th. Stockholders of record on Thursday, January 16th will be paid a $0.18 dividend. The ex-dividend date of this dividend is Thursday, January 16th. This represents a $0.72 annualized dividend and a dividend yield of 1.53%. Commercial Metals’s payout ratio is 17.39%.

Hedge Funds Weigh In On Commercial Metals

A number of large investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. increased its holdings in Commercial Metals by 6.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,081,153 shares of the basic materials company’s stock worth $59,420,000 after acquiring an additional 66,092 shares during the period. Principal Financial Group Inc. increased its holdings in shares of Commercial Metals by 1.1% in the third quarter. Principal Financial Group Inc. now owns 1,714,116 shares of the basic materials company’s stock worth $94,208,000 after purchasing an additional 17,931 shares during the period. Vestcor Inc raised its position in shares of Commercial Metals by 108.0% in the third quarter. Vestcor Inc now owns 18,103 shares of the basic materials company’s stock worth $995,000 after buying an additional 9,400 shares in the last quarter. Seizert Capital Partners LLC boosted its stake in Commercial Metals by 32.5% during the third quarter. Seizert Capital Partners LLC now owns 75,873 shares of the basic materials company’s stock valued at $4,170,000 after buying an additional 18,600 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its position in Commercial Metals by 1.3% during the third quarter. Charles Schwab Investment Management Inc. now owns 1,462,317 shares of the basic materials company’s stock worth $80,369,000 after buying an additional 18,262 shares in the last quarter. 86.90% of the stock is owned by 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.