Wells Fargo & Company Forecasts Strong Price Appreciation for Commercial Metals (NYSE:CMC) Stock

Commercial Metals (NYSE:CMC) had its price objective increased by Wells Fargo & Company from $79.00 to $80.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage presently has an “overweight” rating on the basic materials company’s stock. Wells Fargo & Company‘s price target would suggest a potential upside of 11.69% from the stock’s previous close.

Several other equities research analysts have also recently commented on the stock. JPMorgan Chase & Co. upgraded shares of Commercial Metals from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $64.00 to $78.00 in a research report on Friday, December 5th. Wall Street Zen raised shares of Commercial Metals from a “buy” rating to a “strong-buy” rating in a research note on Friday, November 28th. Weiss Ratings reissued a “hold (c)” rating on shares of Commercial Metals in a research note on Wednesday, January 21st. Jefferies Financial Group set a $85.00 target price on shares of Commercial Metals and gave the stock a “buy” rating in a report on Thursday, January 8th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $84.00 price target on shares of Commercial Metals in a research report on Tuesday, December 30th. Eight equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Commercial Metals currently has an average rating of “Moderate Buy” and an average price target of $72.80.

Commercial Metals Trading Down 2.7%

Shares of NYSE CMC opened at $71.63 on Monday. Commercial Metals has a 12-month low of $37.92 and a 12-month high of $84.87. The company has a market cap of $7.94 billion, a price-to-earnings ratio of 18.46, a price-to-earnings-growth ratio of 0.40 and a beta of 1.47. The company has a current ratio of 4.47, a quick ratio of 3.70 and a debt-to-equity ratio of 0.77. The stock’s 50 day simple moving average is $75.81 and its 200 day simple moving average is $65.92.

Commercial Metals (NYSE:CMC) last posted its earnings results on Thursday, January 8th. The basic materials company reported $1.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.55 by $0.29. The firm had revenue of $2.12 billion during the quarter, compared to analyst estimates of $2.06 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. Commercial Metals’s revenue was up 11.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.78 EPS. Equities research analysts expect that Commercial Metals will post 3.09 EPS for the current year.

Insider Buying and Selling

In other news, Director Dennis V. Arriola bought 2,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The shares were bought at an average cost of $74.69 per share, with a total value 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Jennifer J. Durbin sold 25,050 shares of the firm’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total value of $2,003,248.50. Following the completion of the sale, the insider directly owned 52,880 shares of the company’s stock, valued at approximately $4,228,813.60. This trade represents a 32.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.62% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Root Financial Partners LLC acquired a new stake in Commercial Metals during the 3rd quarter worth about $25,000. Rothschild Investment LLC lifted its position in shares of Commercial Metals by 169.6% in the third quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company’s stock worth $29,000 after purchasing an additional 324 shares in the last quarter. Global Retirement Partners LLC boosted its holdings in shares of Commercial Metals by 110.7% during the fourth quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company’s stock worth $40,000 after purchasing an additional 301 shares during the period. Spire Wealth Management boosted its holdings in shares of Commercial Metals by 42.4% during the third quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock worth $35,000 after purchasing an additional 183 shares during the period. Finally, SBI Securities Co. Ltd. grew its position in Commercial Metals by 282.3% during the second quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company’s stock valued at $34,000 after purchasing an additional 511 shares in the last quarter. 86.90% of the stock is owned by institutional investors and hedge funds.

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.