Commercial Metals (NYSE:CMC) Shares Gap Down After Earnings Miss

Commercial Metals Company (NYSE:CMC)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $62.41, but opened at $57.98. Commercial Metals shares last traded at $61.0560, with a volume of 146,565 shares changing hands.

The basic materials company reported $1.16 EPS for the quarter, missing analysts’ consensus estimates of $1.33 by ($0.17). Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The business had revenue of $2.13 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same period in the prior year, the company posted $0.26 EPS. The company’s quarterly revenue was up 21.5% compared to the same quarter last year.

Commercial Metals Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th will be given a $0.20 dividend. This is a boost from Commercial Metals’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Monday, April 6th. This represents a $0.80 annualized dividend and a yield of 1.3%. Commercial Metals’s dividend payout ratio is currently 18.56%.

Commercial Metals News Summary

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

• Positive Sentiment: Core profitability surged — consolidated core EBITDA rose ~114% year-over-year to $297.5M and core EBITDA margin improved by ~610 basis points, signaling much stronger operating leverage. CMC Reports Second Quarter of Fiscal 2026 Results
• Positive Sentiment: Precast acquisition is contributing meaningfully — the recently acquired precast platform delivered $33.6M of adjusted EBITDA (or $40.3M excluding a $6.7M purchase-accounting charge), and management says integration/synergies are progressing. CMC Reports Second Quarter of Fiscal 2026 Results
• Positive Sentiment: Board raised the quarterly dividend 11% to $0.20, signaling confidence in cash flow and capital allocation. CMC Announces an 11% Increase in Quarterly Dividend
• Neutral Sentiment: Top-line growth — revenue climbed ~21.5% YoY to $2.13B and modestly beat consensus (~$2.10B); management cites strong bookings and backlog supporting a healthy 2026 construction season. Listen to Conference Call
• Negative Sentiment: Reported EPS of $1.16 missed consensus (~$1.28–$1.33 depending on source), and that earnings miss — despite strong adjusted results — appears to have pressured the share price in the near term. CMC MarketBeat Summary
• Neutral Sentiment: Analyst/press takeaways are mixed: some outlets call it a “blowout quarter” for the U.S. steel cycle (highlighting industry tailwinds), while others emphasize the EPS miss and near-term volatility. Commercial Metals’ Blowout Quarter Points to a Broader Turnaround in American Steel

Analysts Set New Price Targets

CMC has been the subject of a number of recent analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Commercial Metals in a research note on Wednesday, January 21st. JPMorgan Chase & Co. upgraded shares of Commercial Metals from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $64.00 to $78.00 in a report on Friday, December 5th. KeyCorp initiated coverage on shares of Commercial Metals in a research report on Wednesday. They issued a “sector weight” rating for the company. Wells Fargo & Company upped their target price on shares of Commercial Metals from $79.00 to $80.00 and gave the stock an “overweight” rating in a research note on Monday, March 2nd. Finally, Wall Street Zen raised shares of Commercial Metals from a “buy” rating to a “strong-buy” rating in a research report on Friday, November 28th. Eight analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Commercial Metals currently has a consensus rating of “Moderate Buy” and an average target price of $72.80.

Insider Activity

In other Commercial Metals news, 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 transaction of $2,003,248.50. Following the transaction, the insider 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Dennis V. Arriola purchased 2,000 shares of Commercial Metals stock in a transaction dated Tuesday, January 20th. The stock was acquired at an average price of $74.69 per share, with a total value of $149,380.00. Following the acquisition, the director owned 9,238 shares in the company, valued at approximately $689,986.22. This represents a 27.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Commercial Metals

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Root Financial Partners LLC purchased a new stake in Commercial Metals during the third quarter worth $25,000. Rothschild Investment LLC increased its holdings in shares of Commercial Metals by 169.6% in the 3rd quarter. Rothschild Investment LLC now owns 515 shares of the basic materials company’s stock valued at $29,000 after acquiring an additional 324 shares during the period. Spire Wealth Management raised its position in shares of Commercial Metals by 42.4% in the 3rd quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock worth $35,000 after acquiring an additional 183 shares in the last quarter. Global Retirement Partners LLC raised its position in shares of Commercial Metals by 110.7% in the 4th quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company’s stock worth $40,000 after acquiring an additional 301 shares in the last quarter. Finally, V Square Quantitative Management LLC purchased a new stake in shares of Commercial Metals during the 4th quarter worth $54,000. 86.90% of the stock is currently owned by institutional investors.

Commercial Metals Stock Down 4.7%

The business has a 50 day moving average of $72.92 and a two-hundred day moving average of $66.51. The stock has a market capitalization of $6.59 billion, a PE ratio of 15.32, a PEG ratio of 0.34 and a beta of 1.47. The company has a debt-to-equity ratio of 0.77, a quick ratio of 3.70 and a current ratio of 4.47.

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.