Wells Fargo & Company Has Lowered Expectations for Commercial Metals (NYSE:CMC) Stock Price

Commercial Metals (NYSE:CMC) had its target price dropped by equities researchers at Wells Fargo & Company from $80.00 to $77.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an “overweight” rating on the basic materials company’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 32.20% from the company’s previous close.

Several other equities research analysts also recently commented on the company. Citigroup lifted their price objective on Commercial Metals from $65.00 to $85.00 and gave the stock a “buy” rating in a report on Monday, January 12th. Wall Street Zen upgraded shares of Commercial Metals from a “buy” rating to a “strong-buy” rating in a research note on Friday, November 28th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $84.00 price target on shares of Commercial Metals in a report on Tuesday, December 30th. KeyCorp assumed coverage on shares of Commercial Metals in a report on Wednesday. They set a “sector weight” rating for the company. Finally, Jefferies Financial Group set a $85.00 price objective on shares of Commercial Metals and gave the company a “buy” rating in a research report on Thursday, January 8th. Eight investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $73.00.

Commercial Metals Stock Performance

Shares of CMC opened at $58.25 on Friday. The company has a market cap of $6.46 billion, a price-to-earnings ratio of 12.97, a P/E/G ratio of 0.32 and a beta of 1.47. The business’s fifty day simple moving average is $72.60 and its two-hundred day simple moving average is $66.56. Commercial Metals has a 12 month low of $37.92 and a 12 month high of $84.87. The company has a current ratio of 2.38, a quick ratio of 3.70 and a debt-to-equity ratio of 0.75.

Commercial Metals (NYSE:CMC) last posted its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.12). The business 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%.The firm’s revenue for the quarter was up 21.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.26 EPS. Research analysts anticipate that Commercial Metals will post 3.09 earnings per share for the current fiscal year.

Insider Activity

In other 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 purchase, the director directly owned 9,238 shares in the company, valued at $689,986.22. This trade represents a 27.63% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jennifer J. Durbin sold 25,050 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $79.97, for a total transaction of $2,003,248.50. Following the sale, the insider directly owned 52,880 shares of the company’s stock, valued at $4,228,813.60. The trade was a 32.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.62% of the company’s stock.

Institutional Trading of Commercial Metals

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

More Commercial Metals News

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.