Commercial Metals (NYSE:CMC) Stock Price Down 3.6% – Time to Sell?

Commercial Metals (NYSE:CMC)’s share price traded down 3.6% on Wednesday . The company traded as low as $48.01 and last traded at $48.85. 171,304 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 973,777 shares. The stock had previously closed at $50.67.

Wall Street Analysts Forecast Growth

CMC has been the topic of several recent analyst reports. UBS Group dropped their target price on shares of Commercial Metals from $54.00 to $49.00 and set a “neutral” rating on the stock in a report on Monday, March 24th. Wolfe Research upgraded Commercial Metals from a “peer perform” rating to an “outperform” rating and set a $50.00 price objective on the stock in a research report on Tuesday, May 27th. BMO Capital Markets lowered their target price on Commercial Metals from $58.00 to $54.00 and set a “market perform” rating for the company in a research note on Friday, March 21st. Morgan Stanley dropped their price objective on shares of Commercial Metals from $56.00 to $53.00 and set an “equal weight” rating on the stock in a report on Friday, March 7th. Finally, JPMorgan Chase & Co. assumed coverage on Commercial Metals in a research report on Friday, May 30th. They issued a “neutral” rating and a $52.00 target price on the stock. Six investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $58.00.

Commercial Metals Price Performance

The business’s 50 day moving average is $45.71 and its 200-day moving average is $48.93. The company has a quick ratio of 1.94, a current ratio of 2.76 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $5.45 billion, a P/E ratio of 43.44, a PEG ratio of 2.62 and a beta of 1.27.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings results on Thursday, March 20th. The basic materials company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.05). The company had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.73 billion. Commercial Metals had a net margin of 1.70% and a return on equity of 9.88%. The company’s quarterly revenue was down 5.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.88 EPS. As a group, sell-side analysts predict that Commercial Metals will post 3.09 EPS for the current fiscal year.

Commercial Metals Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 9th. Investors of record on Monday, March 31st were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.49%. The ex-dividend date of this dividend was Monday, March 31st. Commercial Metals’s payout ratio is currently 120.00%.

Insiders Place Their Bets

In other news, Director John R. Mcpherson acquired 2,475 shares of the firm’s stock in a transaction that occurred on Friday, April 4th. The stock was bought at an average price of $40.42 per share, with a total value of $100,039.50. Following the acquisition, the director now owns 15,141 shares in the company, valued at $611,999.22. The trade was a 19.54% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Commercial Metals

Several hedge funds have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. boosted its stake in Commercial Metals by 14.9% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 4,161,292 shares of the basic materials company’s stock worth $191,461,000 after purchasing an additional 539,309 shares during the period. Boston Partners grew its stake in Commercial Metals by 6.4% during the fourth quarter. Boston Partners now owns 4,055,150 shares of the basic materials company’s stock valued at $201,178,000 after acquiring an additional 243,921 shares in the last quarter. Victory Capital Management Inc. increased its holdings in Commercial Metals by 27.5% during the 1st quarter. Victory Capital Management Inc. now owns 3,089,313 shares of the basic materials company’s stock worth $142,139,000 after acquiring an additional 666,886 shares during the period. Franklin Resources Inc. boosted its holdings in Commercial Metals by 87.0% in the 4th quarter. Franklin Resources Inc. now owns 1,919,445 shares of the basic materials company’s stock valued at $95,204,000 after purchasing an additional 893,094 shares during the period. Finally, First Trust Advisors LP grew its position in shares of Commercial Metals by 34.1% during the 4th quarter. First Trust Advisors LP now owns 1,754,840 shares of the basic materials company’s stock valued at $87,040,000 after purchasing an additional 446,317 shares in the last quarter. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

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.