Commercial Metals (NYSE:CMC) Sees Significant Increase in Short Interest

Commercial Metals (NYSE:CMC) was the recipient of a large growth in short interest in the month of December. As of December 15th, there was short interest totalling 3,700,000 shares, a growth of 16.4% from the November 30th total of 3,180,000 shares. Based on an average trading volume of 903,300 shares, the short-interest ratio is currently 4.1 days. Currently, 3.3% of the company’s stock are sold short.

Institutional Investors Weigh In On Commercial Metals

Several institutional investors have recently modified their holdings of the business. Principal Financial Group Inc. lifted its stake in Commercial Metals by 1.1% during the 3rd quarter. Principal Financial Group Inc. now owns 1,714,116 shares of the basic materials company’s stock valued at $94,208,000 after acquiring an additional 17,931 shares during the period. Vestcor Inc lifted its position in Commercial Metals by 108.0% during the third quarter. Vestcor Inc now owns 18,103 shares of the basic materials company’s stock valued at $995,000 after purchasing an additional 9,400 shares during the period. Seizert Capital Partners LLC boosted its holdings in Commercial Metals by 32.5% in the third quarter. Seizert Capital Partners LLC now owns 75,873 shares of the basic materials company’s stock worth $4,170,000 after purchasing an additional 18,600 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in Commercial Metals by 1.3% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,462,317 shares of the basic materials company’s stock worth $80,369,000 after purchasing an additional 18,262 shares during the period. Finally, Intech Investment Management LLC grew its position in Commercial Metals by 87.8% in the 3rd quarter. Intech Investment Management LLC now owns 36,392 shares of the basic materials company’s stock worth $2,000,000 after purchasing an additional 17,010 shares during the period. 86.90% of the stock is owned by hedge funds and other institutional investors.

Commercial Metals Stock Performance

Shares of CMC stock opened at $49.60 on Wednesday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.78 and a current ratio of 3.94. The company has a market capitalization of $5.66 billion, a price-to-earnings ratio of 11.98, a price-to-earnings-growth ratio of 2.74 and a beta of 1.15. Commercial Metals has a one year low of $47.42 and a one year high of $64.53. The company’s 50-day moving average is $57.29 and its 200 day moving average is $55.07.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings results on Thursday, October 17th. The basic materials company reported $0.90 earnings per share for the quarter, missing the consensus estimate of $0.91 by ($0.01). The firm had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.07 billion. Commercial Metals had a net margin of 6.13% and a return on equity of 12.20%. Sell-side analysts expect that Commercial Metals will post 4.26 EPS for the current fiscal year.

Commercial Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 14th. Stockholders of record on Thursday, October 31st were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.45%. The ex-dividend date of this dividend was Thursday, October 31st. Commercial Metals’s payout ratio is currently 17.39%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Morgan Stanley began coverage on Commercial Metals in a research note on Thursday, December 19th. They issued an “equal weight” rating and a $65.00 target price for the company. UBS Group reissued a “sell” rating and set a $56.00 price objective (down previously from $62.00) on shares of Commercial Metals in a research report on Thursday, December 12th. BMO Capital Markets set a $62.00 target price on shares of Commercial Metals and gave the stock a “market perform” rating in a research report on Friday, October 18th. The Goldman Sachs Group assumed coverage on shares of Commercial Metals in a research report on Monday, December 2nd. They set a “buy” rating and a $75.00 price target for the company. Finally, Jefferies Financial Group began coverage on shares of Commercial Metals in a report on Tuesday, September 3rd. They issued a “buy” rating and a $65.00 price objective on the stock. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, Commercial Metals currently has an average rating of “Hold” and an average price target of $65.33.

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.