Value Hunters: Look To Commercial Metals Company (NYSE: CMC)

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    The Vanguard Group, Inc. recently announced the acquisition of new stake in Commercial Metals Company (NYSE:CMC). The institutional investor has increased its shareholding in the Basic Materials company by 7.37% to 12.35 million shares with purchase of 0.85 million shares. This fresh investment now brings its stake to 10.37% valued currently at $251.88 million. In addition, Dimensional Fund Advisors LP raised its holdings by 6116.0 to 9.86 million shares. And Northern Trust Investments, Inc.(. has lifted its position by 0.05% or 1441.0 shares – to 2.93 million shares.

    With over 0.86 million Commercial Metals Company (CMC) shares trading Monday and a closing price of $20.11 on the day, the dollar volume was approximately $17.24 million. The shares have shown a positive weekly performance of 2.71% and its price on 07/20/20 lost nearly -1.28%. Currently, there are 119.19M common shares owned by the public and among those 117.50M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for CMC have a consensus price objective of $22.70. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Commercial Metals Company stock is 2.30 for the next 12 months. The average price target is 11.95% above its last price level and an upside to the estimated low will see the stock lose -0.55% over that period. But an upside of 19.56% will see the stock hit the forecast high price target while mean target price for the stock is $23.00.

    Insiders at the company have transacted a total of 63 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 37 of these insider trades were purchases, accounting for 509,210 shares. Insider sales of the common stock occurred on 26 occasions, with total insider shares sold totaling 222,295 shares.

    The top 3 mutual fund holders in Commercial Metals Company are DFA US Small Cap Value Portfolio, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. DFA US Small Cap Value Portfolio owns 3.97 million shares of the company’s stock, all valued at over $81.06 million. The company sold -0.19 million shares recently to bring their total holdings to about 3.34% of the shares outstanding. Vanguard Total Stock Market Index bought 10151.0 shares to see its total holdings expand to 3.37 million shares valued at over $68.84 million and representing 2.83% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.69% of the shares outstanding.

    Shares of Commercial Metals Company (NYSE: CMC) opened at $20.20, down -$0.17 from a prior closing price of $20.37. However, the script later closed the day at $20.11, down -1.28%. The company’s stock has a 5-day price change of 2.71% and 30.33% over the past three months. CMC shares are trading -9.70% year to date (YTD), with the 12-month market performance up to 10.25% higher. It has a 12-month low price of $10.76 and touched a high of $24.04 over the same period. Currently, 0.86 million shares have been traded, compared to an average intraday trading volume of 1.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.33%, 8.75%, and 6.41% respectively.

    Institutional ownership of Commercial Metals Company (NYSE: CMC) shares accounts for 90.60% of the company’s 119.19M shares outstanding. Mutual fund holders own 51.92%, while other institutional holders and individual stakeholders account for 8.23% and 37.92% respectively.

    It has a market capitalization of $2.40B and a beta (3y monthly) value of 1.41. The stock’s trailing 12-month PE ratio is 8.16, while the earnings-per-share (ttm) stands at $2.47. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.88% over the week and 3.46% over the month.

    Analysts forecast that Commercial Metals Company (CMC) will achieve an EPS of $0.52 for the current quarter, $0.49 for the next quarter and $1.94 for 2021. The lowest estimate earnings-per-share for the quarter is $0.5 while analysts give the company a high EPS estimate of $0.56. Comparatively, EPS for the current quarter was $0.76 a year ago. Earnings per share for the fiscal year are expected to increase by 39.40%, and -17.91% over the next financial year. EPS should shrink at an annualized rate of -5.17% over the next five years, compared to 11.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Commercial Metals Company (CMC) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 5 of the 9 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CMC, a number of firms have released research notes about the stock. Cowen stated their Market Perform rating for the stock in a research note on June 22, 2020, with the firm’s price target at $17-$20. Citigroup coverage for the Commercial Metals Company (CMC) stock in a research note released on June 08, 2020 offered a Neutral rating with a price target of. BofA/Merrill was of a view on March 17, 2020 that the stock is Buy, while Deutsche Bank gave the stock Buy rating on November 26, 2019, issuing a price target of. BMO Capital Markets on their part issued Market Perform rating on November 26, 2019.

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