Commercial Metals (NYSE:CMC) Shares Gap Down on Disappointing Earnings

Commercial Metals (NYSE:CMC) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $46.86, but opened at $45.13. Commercial Metals shares last traded at $46.85, with a volume of 162,781 shares traded.

The basic materials company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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%. Commercial Metals’s revenue was down 5.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.88 EPS.

Commercial Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 9th. Shareholders of record on Monday, March 31st will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.52%. The ex-dividend date is Monday, March 31st. Commercial Metals’s dividend payout ratio (DPR) is presently 64.86%.

Analysts Set New Price Targets

CMC has been the topic of a number of recent analyst reports. UBS Group raised Commercial Metals from a “sell” rating to a “neutral” rating and lowered their price target for the stock from $56.00 to $54.00 in a research report on Friday, January 10th. BMO Capital Markets reduced their price objective on Commercial Metals from $62.00 to $58.00 and set a “market perform” rating for the company in a report on Friday, January 3rd. Morgan Stanley reduced their price objective on Commercial Metals from $56.00 to $53.00 and set an “equal weight” rating for the company in a report on Friday, March 7th. BNP Paribas cut Commercial Metals from an “outperform” rating to a “neutral” rating in a report on Friday, January 3rd. Finally, Jefferies Financial Group reduced their price objective on Commercial Metals from $65.00 to $62.00 and set a “buy” rating for the company in a report on Monday, January 6th. Six equities research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $61.83.

Institutional Investors Weigh In On Commercial Metals

A number of large investors have recently added to or reduced their stakes in the stock. Cim LLC grew its position in Commercial Metals by 1.8% during the fourth quarter. Cim LLC now owns 41,784 shares of the basic materials company’s stock worth $2,072,000 after buying an additional 744 shares in the last quarter. Park Square Financial Group LLC acquired a new stake in Commercial Metals during the fourth quarter worth approximately $33,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in Commercial Metals during the fourth quarter worth approximately $4,475,000. Heck Capital Advisors LLC acquired a new stake in Commercial Metals during the fourth quarter worth approximately $34,000. Finally, Integrated Advisors Network LLC boosted its holdings in shares of Commercial Metals by 9.3% in the 4th quarter. Integrated Advisors Network LLC now owns 8,972 shares of the basic materials company’s stock valued at $445,000 after purchasing an additional 760 shares in the last quarter. Institutional investors and hedge funds own 86.90% of the company’s stock.

Commercial Metals Stock Performance

The stock has a fifty day simple moving average of $48.87 and a two-hundred day simple moving average of $52.77. The stock has a market cap of $5.38 billion, a price-to-earnings ratio of 42.65, a P/E/G ratio of 2.62 and a beta of 1.17. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.94 and a current ratio of 2.76.

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.