JPMorgan Chase & Co. Issues Pessimistic Forecast for Commercial Metals (NYSE:CMC) Stock Price

Commercial Metals (NYSE:CMC) had its price objective cut by equities researchers at JPMorgan Chase & Co. from $85.00 to $83.00 in a report released on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the basic materials company’s stock. JPMorgan Chase & Co.‘s price objective would indicate a potential upside of 42.50% from the stock’s previous close.

A number of other research firms also recently issued reports on CMC. Jefferies Financial Group set a $85.00 price objective on shares of Commercial Metals and gave the stock a “buy” rating in a report on Thursday, January 8th. Zacks Research cut Commercial Metals from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. The Goldman Sachs Group restated a “buy” rating and set a $84.00 price target on shares of Commercial Metals in a research report on Tuesday, December 30th. KeyCorp initiated coverage on Commercial Metals in a research note on Wednesday. They set a “sector weight” rating for the company. Finally, Wall Street Zen upgraded Commercial Metals from a “buy” rating to a “strong-buy” rating in a report on Friday, November 28th. Eight research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $73.00.

Commercial Metals Trading Down 2.1%

Shares of CMC opened at $58.25 on Friday. The firm’s 50 day simple moving average is $72.60 and its 200 day simple moving average is $66.56. The company has a market capitalization of $6.46 billion, a P/E ratio of 12.97, a P/E/G ratio of 0.32 and a beta of 1.47. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.38 and a quick ratio of 3.70. Commercial Metals has a 1-year low of $37.92 and a 1-year high of $84.87.

Commercial Metals (NYSE:CMC) last released its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 EPS for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.12). The company had revenue of $2.13 billion during the quarter, compared to analysts’ expectations of $2.10 billion. Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.Commercial Metals’s quarterly revenue was up 21.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.26 EPS. Sell-side analysts forecast that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Commercial Metals news, Director Dennis V. Arriola purchased 2,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The stock was acquired at an average cost of $74.69 per share, for a total transaction of $149,380.00. Following the completion of the transaction, the director directly owned 9,238 shares in the company, valued at approximately $689,986.22. This represents a 27.63% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Jennifer J. Durbin sold 25,050 shares of the firm’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total value of $2,003,248.50. Following the transaction, the insider directly owned 52,880 shares in the company, valued at $4,228,813.60. This trade represents a 32.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.62% of the stock is owned by company insiders.

Institutional Investors Weigh In On Commercial Metals

A number of hedge funds and other institutional investors have recently modified their holdings of CMC. State Street Corp boosted its holdings in Commercial Metals by 1.5% during the 4th quarter. State Street Corp now owns 6,361,477 shares of the basic materials company’s stock valued at $440,341,000 after acquiring an additional 91,104 shares during the period. Boston Partners increased its stake in Commercial Metals by 1.9% in the 3rd quarter. Boston Partners now owns 3,641,930 shares of the basic materials company’s stock worth $208,629,000 after purchasing an additional 67,139 shares during the period. Geode Capital Management LLC lifted its position in Commercial Metals by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company’s stock valued at $202,626,000 after purchasing an additional 86,749 shares during the last quarter. American Century Companies Inc. lifted its position in Commercial Metals by 6.6% in the third quarter. American Century Companies Inc. now owns 1,823,923 shares of the basic materials company’s stock valued at $104,474,000 after purchasing an additional 112,267 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Commercial Metals by 4.8% during the third quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company’s stock valued at $95,144,000 after purchasing an additional 76,365 shares during the period. Institutional investors own 86.90% of the company’s stock.

Key Stories Impacting Commercial Metals

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Revenue and EBITDA strength — Q2 revenue topped estimates and consolidated core EBITDA roughly doubled year‑over‑year, with meaningful margin expansion driven by the Construction Solutions (precast) acquisition, supporting medium‑term growth and operating leverage. PR Newswire: Q2 Results
• Positive Sentiment: Capital returns and leverage progress — management raised capital returns (dividend increase and buybacks), reported reduced net leverage and reiterated a goal to reach ~2x leverage within the committed timeframe, which supports shareholder value and reduces financing risk. TipRanks: Dividend & Returns
• Positive Sentiment: Management guidance and backlog — the company expects sequential EBITDA gains (CSG strength) and reports healthy bookings/backlog ahead of the construction season, giving a clear operational catalyst for FQ3 improvement. MarketBeat: Outlook
• Neutral Sentiment: Analyst coverage and differing views — some firms (e.g., Bank of America maintained a Buy) continue to support CMC, while others began or adjusted coverage; this keeps the stock on screens but creates mixed sell‑side signals. TipRanks: Analyst Note
• Neutral Sentiment: Technical/positioning commentary — some market pieces argue the pullback is a buying opportunity (institutional accumulation, short interest dynamics), which may blunt downside but depends on execution. MarketBeat: Technical
• Negative Sentiment: EPS miss — adjusted EPS of $1.16 came in below the $1.28 consensus, and that shortfall is the proximate cause of intraday weakness despite the revenue beat. Zacks: Q2 Earnings Miss
• Negative Sentiment: Analyst cuts on forecasts/targets — several firms trimmed forecasts or lowered price targets after the print (Benzinga notes broader cuts; JPMorgan trimmed PT to $83 and Wells Fargo to $77), which increases near‑term selling pressure. Benzinga: Analysts Slash Forecasts
• Negative Sentiment: Market reaction — some outlets report the stock slipped despite strong revenue and backlog, reflecting investor focus on the EPS miss and uncertainty around acquisition accounting/one‑time items. Blockonomi: Stock Reaction

Commercial Metals Company Profile

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.