Commercial Metals (NYSE:CMC) Hits New 1-Year Low – Time to Sell?

Commercial Metals (NYSE:CMC) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $37.92 and last traded at $39.05, with a volume of 2010904 shares traded. The stock had previously closed at $41.62.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Morgan Stanley reduced their price target on Commercial Metals from $56.00 to $53.00 and set an “equal weight” rating for the company in a report on Friday, March 7th. Jefferies Financial Group decreased their price target on shares of Commercial Metals from $65.00 to $62.00 and set a “buy” rating for the company in a research report on Monday, January 6th. BNP Paribas cut shares of Commercial Metals from an “outperform” rating to a “neutral” rating in a report on Friday, January 3rd. UBS Group decreased their price target on Commercial Metals from $54.00 to $49.00 and set a “neutral” rating for the company in a research note on Monday, March 24th. Finally, BMO Capital Markets dropped their price target on Commercial Metals from $58.00 to $54.00 and set a “market perform” rating on the stock in a research report on Friday, March 21st. Six analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $60.33.

Commercial Metals Stock Down 4.5 %

The firm’s 50 day simple moving average is $48.07 and its 200 day simple moving average is $52.48. The company has a market cap of $4.42 billion, a price-to-earnings ratio of 35.34, a price-to-earnings-growth ratio of 2.62 and a beta of 1.16. The company has a quick ratio of 1.94, a current ratio of 2.76 and a debt-to-equity ratio of 0.29.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings data on Thursday, March 20th. The basic materials company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.05). Commercial Metals had a net margin of 1.70% and a return on equity of 9.88%. The firm had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same quarter last year, the company earned $0.88 EPS. The company’s quarterly revenue was down 5.1% compared to the same quarter last year. Sell-side analysts anticipate that Commercial Metals will post 3.09 EPS for the current fiscal year.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 9th. Shareholders of record on Monday, March 31st will be given a $0.18 dividend. The ex-dividend date is Monday, March 31st. This represents a $0.72 annualized dividend and a yield of 1.84%. Commercial Metals’s dividend payout ratio (DPR) is 120.00%.

Hedge Funds Weigh In On Commercial Metals

A number of hedge funds have recently modified their holdings of CMC. State Street Corp increased its stake in Commercial Metals by 0.4% in the 3rd quarter. State Street Corp now owns 5,830,412 shares of the basic materials company’s stock worth $320,439,000 after purchasing an additional 24,665 shares in the last quarter. Boston Partners raised its holdings in shares of Commercial Metals by 6.4% during the fourth quarter. Boston Partners now owns 4,055,150 shares of the basic materials company’s stock valued at $201,178,000 after acquiring an additional 243,921 shares during the period. Geode Capital Management LLC lifted its position in shares of Commercial Metals by 1.0% in the 3rd quarter. Geode Capital Management LLC now owns 2,839,601 shares of the basic materials company’s stock valued at $156,093,000 after acquiring an additional 28,019 shares in the last quarter. Victory Capital Management Inc. boosted its stake in Commercial Metals by 11.3% in the 4th quarter. Victory Capital Management Inc. now owns 2,422,427 shares of the basic materials company’s stock worth $120,152,000 after purchasing an additional 245,468 shares during the period. Finally, Franklin Resources Inc. grew its position in Commercial Metals by 87.0% during the 4th quarter. Franklin Resources Inc. now owns 1,919,445 shares of the basic materials company’s stock worth $95,204,000 after purchasing an additional 893,094 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

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.