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

Commercial Metals (NYSE:CMC - Get Free Report) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $46.86, but opened at $45.13. Commercial Metals shares last traded at $46.85, with a volume of 162,781 shares trading hands.

The basic materials company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.05). The company had revenue of $1.75 billion during the quarter, compared to analysts' expectations of $1.73 billion. Commercial Metals had a return on equity of 9.88% and a net margin of 1.70%. The company's revenue for the quarter was down 5.1% on a year-over-year basis. During the same quarter last year, the company earned $0.88 earnings per share.

Commercial Metals Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 9th. Stockholders of record on Monday, March 31st will be given a dividend of $0.18 per share. The ex-dividend date is Monday, March 31st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.47%. Commercial Metals's payout ratio is currently 120.00%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. BMO Capital Markets reduced their target price on shares of Commercial Metals from $58.00 to $54.00 and set a "market perform" rating for the company in a report on Friday. The Goldman Sachs Group began coverage on shares of Commercial Metals in a research note on Monday, December 2nd. They issued a "buy" rating and a $75.00 price objective for the company. BNP Paribas cut shares of Commercial Metals from an "outperform" rating to a "neutral" rating in a research note on Friday, January 3rd. Morgan Stanley cut their price target on Commercial Metals from $56.00 to $53.00 and set an "equal weight" rating for the company in a research note on Friday, March 7th. Finally, Jefferies Financial Group lowered their price objective on Commercial Metals from $65.00 to $62.00 and set a "buy" rating on the stock in a research report on Monday, January 6th. Six research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, Commercial Metals currently has an average rating of "Hold" and a consensus price target of $60.33.

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Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. B. Metzler seel. Sohn & Co. Holding AG purchased a new stake in shares of Commercial Metals in the third quarter worth about $1,008,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. raised its holdings in shares of Commercial Metals by 11.2% during the 3rd quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 244,376 shares of the basic materials company's stock worth $13,431,000 after acquiring an additional 24,606 shares in the last quarter. Intech Investment Management LLC raised its holdings in shares of Commercial Metals by 87.8% during the 3rd quarter. Intech Investment Management LLC now owns 36,392 shares of the basic materials company's stock worth $2,000,000 after acquiring an additional 17,010 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Commercial Metals by 1.3% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,462,317 shares of the basic materials company's stock valued at $80,369,000 after acquiring an additional 18,262 shares during the last quarter. Finally, Citigroup Inc. grew its holdings in shares of Commercial Metals by 99.0% in the third quarter. Citigroup Inc. now owns 123,506 shares of the basic materials company's stock valued at $6,788,000 after purchasing an additional 61,447 shares in the last quarter. Institutional investors own 86.90% of the company's stock.

Commercial Metals Trading Up 4.9 %

The company has a quick ratio of 1.94, a current ratio of 2.76 and a debt-to-equity ratio of 0.29. The stock's 50 day moving average is $48.87 and its 200-day moving average is $52.74. The company has a market cap of $5.56 billion, a PE ratio of 44.04, a P/E/G ratio of 2.62 and a beta of 1.17.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.