Commercial Metals (CMC) Shares Gap Up on Strong Earnings

Shares of Commercial Metals (NYSE:CMC) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $24.64, but opened at $24.30. Commercial Metals shares last traded at $24.39, with a volume of 2726985 shares.

The basic materials company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.14. The company had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.18 billion. Commercial Metals had a return on equity of 6.50% and a net margin of 0.95%. The company’s revenue was up 24.6% on a year-over-year basis. During the same period last year, the firm earned $0.06 earnings per share.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 31st. Stockholders of record on Tuesday, January 16th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, January 12th. This represents a $0.48 annualized dividend and a dividend yield of 1.98%. Commercial Metals’s dividend payout ratio is presently 120.00%.

CMC has been the topic of several research analyst reports. Zacks Investment Research raised shares of Commercial Metals from a “sell” rating to a “hold” rating and set a $24.00 price target on the stock in a research report on Tuesday, October 17th. Jefferies Group raised shares of Commercial Metals from a “hold” rating to a “buy” rating in a research report on Tuesday, October 17th. Citigroup reduced their price target on shares of Commercial Metals from $22.00 to $21.00 and set a “buy” rating on the stock in a research report on Friday, September 15th. Bank of America raised shares of Commercial Metals from a “neutral” rating to a “buy” rating and increased their price target for the stock from $21.00 to $24.00 in a research report on Thursday, December 7th. Finally, Macquarie initiated coverage on shares of Commercial Metals in a research report on Wednesday, September 6th. They set an “underperform” rating and a $16.00 price target on the stock. Four research analysts have rated the stock with a sell rating and five have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $21.88.

Hedge funds and other institutional investors have recently modified their holdings of the business. Canada Pension Plan Investment Board bought a new position in Commercial Metals in the third quarter worth about $101,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in Commercial Metals by 9.8% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,853 shares of the basic materials company’s stock worth $114,000 after acquiring an additional 522 shares during the last quarter. Riverhead Capital Management LLC lifted its holdings in Commercial Metals by 56.6% in the second quarter. Riverhead Capital Management LLC now owns 6,892 shares of the basic materials company’s stock worth $134,000 after acquiring an additional 2,492 shares during the last quarter. Crossmark Global Holdings Inc. bought a new position in Commercial Metals in the third quarter worth about $282,000. Finally, GSA Capital Partners LLP bought a new position in Commercial Metals in the third quarter worth about $295,000. 88.55% of the stock is currently owned by hedge funds and other institutional investors.

The company has a quick ratio of 1.81, a current ratio of 2.82 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $2,655.68, a price-to-earnings ratio of 60.75 and a beta of 1.26.

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About Commercial Metals

Commercial Metals Company, together with its subsidiaries, manufactures, recycles and markets steel and metal products, related materials and services through a network. The Company’s Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment consists of steel mills, commonly referred to as minimills that produce reinforcing bar (rebar), angles, flats and rounds.

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