Commercial Metals (NYSE:CMC) Stock Price Up 5.8% After Strong Earnings

Commercial Metals (NYSE:CMC)’s stock price rose 5.8% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $53.68 and last traded at $53.68. Approximately 436,841 shares changed hands during trading, a decline of 51% from the average daily volume of 889,839 shares. The stock had previously closed at $50.74.

The basic materials company reported $1.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.02. Commercial Metals had a net margin of 6.95% and a return on equity of 14.62%. The business had revenue of $2.08 billion for the quarter, compared to analyst estimates of $2.02 billion. During the same quarter in the previous year, the business earned $2.02 earnings per share. The firm’s revenue was down 11.4% compared to the same quarter last year.

Commercial Metals Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 10th. Stockholders of record on Monday, July 1st will be issued a dividend of $0.18 per share. The ex-dividend date is Monday, July 1st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.32%. Commercial Metals’s dividend payout ratio is currently 15.00%.

Wall Street Analyst Weigh In

CMC has been the topic of a number of recent analyst reports. StockNews.com lowered shares of Commercial Metals from a “buy” rating to a “hold” rating in a report on Thursday. BMO Capital Markets boosted their price target on shares of Commercial Metals from $52.00 to $60.00 and gave the company a “market perform” rating in a report on Friday, March 22nd.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, Chairman Barbara Smith sold 35,704 shares of the company’s stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $57.88, for a total value of $2,066,547.52. Following the transaction, the chairman now owns 36,196 shares in the company, valued at approximately $2,095,024.48. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of CMC. HighTower Advisors LLC increased its stake in shares of Commercial Metals by 6.4% during the 3rd quarter. HighTower Advisors LLC now owns 11,213 shares of the basic materials company’s stock worth $555,000 after purchasing an additional 679 shares during the last quarter. UBS Group AG increased its stake in shares of Commercial Metals by 182.6% during the 3rd quarter. UBS Group AG now owns 103,531 shares of the basic materials company’s stock worth $5,115,000 after purchasing an additional 66,902 shares during the last quarter. Deutsche Bank AG increased its stake in shares of Commercial Metals by 17.5% during the 3rd quarter. Deutsche Bank AG now owns 78,676 shares of the basic materials company’s stock worth $3,887,000 after purchasing an additional 11,718 shares during the last quarter. Kestra Advisory Services LLC increased its stake in shares of Commercial Metals by 23.1% during the 3rd quarter. Kestra Advisory Services LLC now owns 5,564 shares of the basic materials company’s stock worth $275,000 after purchasing an additional 1,045 shares during the last quarter. Finally, QRG Capital Management Inc. acquired a new position in shares of Commercial Metals during the 3rd quarter worth $741,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

Commercial Metals Trading Up 3.3 %

The company’s 50 day moving average price is $54.72 and its 200 day moving average price is $53.28. The company has a market cap of $6.30 billion, a price-to-earnings ratio of 11.34 and a beta of 1.27. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.69 and a current ratio of 4.24.

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.