UBS Group Reaffirms Sell Rating for Commercial Metals (NYSE:CMC)

UBS Group reiterated their sell rating on shares of Commercial Metals (NYSE:CMC) in a report released on Thursday, MarketBeat reports. They currently have a $56.00 target price on the basic materials company’s stock, down from their prior target price of $62.00.

Several other brokerages have also issued reports on CMC. The Goldman Sachs Group assumed coverage on Commercial Metals in a report on Monday, December 2nd. They set a “buy” rating and a $75.00 price target for the company. BMO Capital Markets set a $62.00 target price on shares of Commercial Metals and gave the company a “market perform” rating in a research note on Friday, October 18th. Jefferies Financial Group initiated coverage on shares of Commercial Metals in a research note on Tuesday, September 3rd. They set a “buy” rating and a $65.00 price target on the stock. Finally, Wolfe Research cut shares of Commercial Metals from an “outperform” rating to a “peer perform” rating in a report on Wednesday, October 9th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $65.40.

Commercial Metals Stock Down 2.4 %

CMC stock opened at $57.21 on Thursday. The company has a 50 day moving average of $57.90 and a two-hundred day moving average of $55.22. The company has a market cap of $6.52 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 2.74 and a beta of 1.15. Commercial Metals has a 12-month low of $47.27 and a 12-month high of $64.53. The company has a quick ratio of 2.78, a current ratio of 3.94 and a debt-to-equity ratio of 0.27.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings data on Thursday, October 17th. The basic materials company reported $0.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.01). The firm had revenue of $2 billion for the quarter, compared to analysts’ expectations of $2.07 billion. Commercial Metals had a return on equity of 12.20% and a net margin of 6.13%. On average, equities analysts anticipate that Commercial Metals will post 4.26 earnings per share for the current fiscal year.

Commercial Metals Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, November 14th. Investors of record on Thursday, October 31st were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.26%. The ex-dividend date was Thursday, October 31st. Commercial Metals’s dividend payout ratio is currently 17.39%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC increased its stake in shares of Commercial Metals by 0.7% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 26,778 shares of the basic materials company’s stock worth $1,473,000 after purchasing an additional 187 shares during the period. Blue Trust Inc. increased its position in Commercial Metals by 25.4% in the 2nd quarter. Blue Trust Inc. now owns 6,682 shares of the basic materials company’s stock worth $393,000 after buying an additional 1,353 shares during the period. Sumitomo Mitsui Trust Holdings Inc. acquired a new position in shares of Commercial Metals during the second quarter worth approximately $1,140,000. Raymond James & Associates boosted its position in shares of Commercial Metals by 23.3% in the second quarter. Raymond James & Associates now owns 214,716 shares of the basic materials company’s stock valued at $11,807,000 after acquiring an additional 40,621 shares during the period. Finally, Neo Ivy Capital Management acquired a new stake in shares of Commercial Metals in the second quarter worth $788,000. 86.90% of the stock is currently owned by institutional investors and hedge funds.

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.