The Goldman Sachs Group Initiates Coverage on Commercial Metals (NYSE:CMC)

Investment analysts at The Goldman Sachs Group assumed coverage on shares of Commercial Metals (NYSE:CMC) in a note issued to investors on Wednesday, Marketbeat Ratings reports. The brokerage set a “neutral” rating and a $74.00 price target on the basic materials company’s stock. The Goldman Sachs Group’s price target would indicate a potential upside of 19.91% from the stock’s current price.

A number of other research analysts also recently issued reports on CMC. Jefferies Financial Group set a $85.00 target price on shares of Commercial Metals and gave the company a “buy” rating in a research report on Thursday, January 8th. Citigroup lifted their price target on shares of Commercial Metals from $65.00 to $85.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. Wells Fargo & Company cut their price objective on shares of Commercial Metals from $80.00 to $77.00 and set an “overweight” rating on the stock in a report on Friday, March 27th. Zacks Research cut shares of Commercial Metals from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Finally, JPMorgan Chase & Co. lowered their target price on shares of Commercial Metals from $85.00 to $83.00 and set an “overweight” rating for the company in a report on Friday, March 27th. Seven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Commercial Metals presently has an average rating of “Moderate Buy” and an average price target of $72.00.

Commercial Metals Trading Down 1.8%

CMC stock opened at $61.71 on Wednesday. The company has a market cap of $6.84 billion, a P/E ratio of 13.74, a PEG ratio of 0.35 and a beta of 1.47. Commercial Metals has a twelve month low of $37.92 and a twelve month high of $84.87. The company has a quick ratio of 1.55, a current ratio of 2.38 and a debt-to-equity ratio of 0.75. The business has a fifty day moving average of $71.42 and a 200-day moving average of $66.59.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.28 by ($0.12). The firm had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.10 billion. Commercial Metals had a net margin of 6.02% and a return on equity of 13.54%. The company’s revenue was up 21.5% compared to the same quarter last year. During the same period last year, the company earned $0.26 EPS. As a group, equities research analysts expect that Commercial Metals will post 3.09 EPS for the current year.

Insider Transactions at Commercial Metals

In other Commercial Metals news, Director Dennis V. Arriola purchased 2,000 shares of the company’s stock in a transaction dated Tuesday, January 20th. The shares were bought at an average price of $74.69 per share, with a total value of $149,380.00. Following the completion of the transaction, 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 purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jennifer J. Durbin sold 25,050 shares of Commercial Metals 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 owned 52,880 shares in the company, valued at $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. 0.62% of the stock is currently owned by insiders.

Institutional Trading of Commercial Metals

Several hedge funds have recently bought and sold shares of CMC. Lazard Asset Management LLC boosted its holdings in shares of Commercial Metals by 0.6% in the fourth quarter. Lazard Asset Management LLC now owns 23,199 shares of the basic materials company’s stock valued at $1,606,000 after buying an additional 133 shares during the period. Ashton Thomas Private Wealth LLC raised its holdings in shares of Commercial Metals by 3.1% during the fourth quarter. Ashton Thomas Private Wealth LLC now owns 4,904 shares of the basic materials company’s stock worth $339,000 after acquiring an additional 149 shares during the period. Corient Private Wealth LLC raised its holdings in shares of Commercial Metals by 0.7% during the fourth quarter. Corient Private Wealth LLC now owns 23,554 shares of the basic materials company’s stock worth $1,630,000 after acquiring an additional 155 shares during the period. Blue Trust Inc. lifted its position in Commercial Metals by 2.3% in the 3rd quarter. Blue Trust Inc. now owns 7,867 shares of the basic materials company’s stock valued at $451,000 after acquiring an additional 180 shares in the last quarter. Finally, Spire Wealth Management lifted its position in Commercial Metals by 42.4% in the 3rd quarter. Spire Wealth Management now owns 615 shares of the basic materials company’s stock valued at $35,000 after acquiring an additional 183 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

About Commercial Metals

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.