Commercial Metals (NYSE:CMC) Shares Gap Up – Should You Buy?

Commercial Metals (NYSE:CMC)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $49.63, but opened at $52.35. Commercial Metals shares last traded at $51.14, with a volume of 124,929 shares.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Morgan Stanley lowered their price objective on Commercial Metals from $65.00 to $56.00 and set an “equal weight” rating for the company in a research report on Monday, February 3rd. The Goldman Sachs Group assumed coverage on Commercial Metals in a research report on Monday, December 2nd. They set a “buy” rating and a $75.00 price objective for the company. UBS Group raised Commercial Metals from a “sell” rating to a “neutral” rating and lowered their price objective for the stock from $56.00 to $54.00 in a research report on Friday, January 10th. BMO Capital Markets lowered their price objective on Commercial Metals from $62.00 to $58.00 and set a “market perform” rating for the company in a research report on Friday, January 3rd. Finally, BNP Paribas cut Commercial Metals from an “outperform” rating to a “neutral” rating in a research report on Friday, January 3rd. Six research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, Commercial Metals has an average rating of “Hold” and an average target price of $62.33.

Commercial Metals Trading Down 1.8 %

The firm has a market capitalization of $5.67 billion, a PE ratio of 44.94, a P/E/G ratio of 2.58 and a beta of 1.18. The business has a 50 day moving average price of $51.68 and a 200-day moving average price of $53.94. The company has a current ratio of 2.76, a quick ratio of 1.94 and a debt-to-equity ratio of 0.29.

Commercial Metals (NYSE:CMC) last issued its earnings results on Monday, January 6th. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.78. The business had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.85 billion. Commercial Metals had a return on equity of 9.88% and a net margin of 1.70%. The company’s revenue for the quarter was down 4.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.49 EPS. Analysts expect that Commercial Metals will post 3.09 earnings per share for the current year.

Commercial Metals Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 30th. Stockholders of record on Thursday, January 16th were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.44%. The ex-dividend date was Thursday, January 16th. Commercial Metals’s dividend payout ratio (DPR) is 64.86%.

Hedge Funds Weigh In On Commercial Metals

Hedge funds have recently bought and sold shares of the company. Heck Capital Advisors LLC purchased a new position in Commercial Metals in the 4th quarter valued at approximately $34,000. V Square Quantitative Management LLC increased its stake in Commercial Metals by 60.7% in the 4th quarter. V Square Quantitative Management LLC now owns 707 shares of the basic materials company’s stock valued at $35,000 after purchasing an additional 267 shares in the last quarter. nVerses Capital LLC acquired a new stake in Commercial Metals during the 3rd quarter valued at $66,000. Jones Financial Companies Lllp grew its holdings in Commercial Metals by 22.0% during the 4th quarter. Jones Financial Companies Lllp now owns 1,646 shares of the basic materials company’s stock valued at $82,000 after buying an additional 297 shares during the last quarter. Finally, Amundi grew its holdings in Commercial Metals by 29.9% during the 4th quarter. Amundi now owns 2,189 shares of the basic materials company’s stock valued at $108,000 after buying an additional 504 shares during the last quarter. 86.90% of the stock is 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.