Commercial Metals (NYSE:CMC – Get Free Report) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $48.34, but opened at $45.50. Commercial Metals shares last traded at $44.67, with a volume of 320,633 shares traded.
The basic materials company reported $1.69 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.77 by ($0.08). Commercial Metals had a return on equity of 26.49% and a net margin of 10.72%. The business had revenue of $2.21 billion for the quarter, compared to analysts’ expectations of $2.15 billion. During the same quarter in the prior year, the firm earned $2.45 earnings per share. Commercial Metals’s revenue for the quarter was down 8.2% compared to the same quarter last year.
Commercial Metals Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Thursday, November 9th. Stockholders of record on Thursday, October 26th will be issued a $0.16 dividend. The ex-dividend date of this dividend is Wednesday, October 25th. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.45%. Commercial Metals’s dividend payout ratio (DPR) is 7.91%.
Analyst Ratings Changes
A number of equities research analysts have recently weighed in on the company. UBS Group assumed coverage on Commercial Metals in a report on Tuesday, July 11th. They issued a “buy” rating and a $63.00 price target for the company. StockNews.com assumed coverage on Commercial Metals in a report on Thursday, October 5th. They issued a “hold” rating for the company. Finally, BMO Capital Markets upped their price objective on Commercial Metals from $56.00 to $58.00 in a research note on Friday, June 23rd. Four research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $57.83.
Insider Buying and Selling
In related news, CEO Barbara Smith sold 48,300 shares of the company’s stock in a transaction on Tuesday, July 25th. The stock was sold at an average price of $56.51, for a total transaction of $2,729,433.00. Following the completion of the transaction, the chief executive officer now directly owns 283,785 shares in the company, valued at approximately $16,036,690.35. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders sold a total of 50,100 shares of company stock worth $2,830,915 in the last three months. 1.20% of the stock is owned by insiders.
Institutional Inflows and Outflows
A number of institutional investors have recently added to or reduced their stakes in the business. Steward Partners Investment Advisory LLC boosted its position in Commercial Metals by 3.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 6,987 shares of the basic materials company’s stock worth $337,000 after acquiring an additional 201 shares during the period. Nelson Van Denburg & Campbell Wealth Management Group LLC boosted its position in Commercial Metals by 4.6% during the 2nd quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 4,974 shares of the basic materials company’s stock worth $262,000 after acquiring an additional 217 shares during the period. Affinity Wealth Management LLC boosted its position in Commercial Metals by 1.4% during the 2nd quarter. Affinity Wealth Management LLC now owns 18,216 shares of the basic materials company’s stock worth $959,000 after acquiring an additional 256 shares during the period. Jennison Associates LLC boosted its position in Commercial Metals by 1.2% during the 1st quarter. Jennison Associates LLC now owns 24,337 shares of the basic materials company’s stock worth $1,190,000 after acquiring an additional 277 shares during the period. Finally, Great Lakes Advisors LLC boosted its position in Commercial Metals by 5.9% during the 2nd quarter. Great Lakes Advisors LLC now owns 4,986 shares of the basic materials company’s stock worth $263,000 after acquiring an additional 280 shares during the period. Institutional investors and hedge funds own 82.64% of the company’s stock.
Commercial Metals Stock Down 8.6 %
The company has a current ratio of 3.68, a quick ratio of 2.34 and a debt-to-equity ratio of 0.27. The company has a market cap of $5.16 billion, a price-to-earnings ratio of 5.98 and a beta of 1.34. The stock has a 50-day simple moving average of $53.01 and a 200-day simple moving average of $50.29.
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. 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.