Commercial Metals (NYSE:CMC) Shares Gap Up - Here's What Happened

Commercial Metals (NYSE:CMC - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $49.63, but opened at $52.35. Commercial Metals shares last traded at $51.14, with a volume of 124,929 shares.

Wall Street Analyst Weigh In

CMC has been the subject of several analyst reports. BNP Paribas downgraded Commercial Metals from an "outperform" rating to a "neutral" rating in a report on Friday, January 3rd. The Goldman Sachs Group initiated 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 on the stock. BMO Capital Markets decreased their target price on shares of Commercial Metals from $62.00 to $58.00 and set a "market perform" rating on the stock in a research note on Friday, January 3rd. UBS Group raised Commercial Metals from a "sell" rating to a "neutral" rating and decreased their price target for the company from $56.00 to $54.00 in a report on Friday, January 10th. Finally, Morgan Stanley decreased their target price on Commercial Metals from $65.00 to $56.00 and set an "equal weight" rating on the stock in a research note on Monday, February 3rd. Six investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $62.33.

Commercial Metals Stock Up 3.0 %

The firm has a market capitalization of $5.86 billion, a PE ratio of 46.44, a PEG ratio of 2.58 and a beta of 1.18. The business's 50 day simple moving average is $51.23 and its 200 day simple moving average is $53.90. The company has a current ratio of 2.76, a quick ratio of 1.94 and a debt-to-equity ratio of 0.29.

Commercial Metals (NYSE:CMC - Get Free Report) last released its earnings results on Monday, January 6th. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.78. The firm had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.85 billion. Commercial Metals had a net margin of 1.70% and a return on equity of 9.88%. The business's revenue was down 4.7% on a year-over-year basis. During the same quarter last year, the business earned $1.49 EPS. On average, equities research analysts forecast that Commercial Metals will post 3.09 earnings per share for the current year.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 30th. Stockholders of record on Thursday, January 16th were issued a $0.18 dividend. The ex-dividend date of this dividend was Thursday, January 16th. This represents a $0.72 annualized dividend and a dividend yield of 1.40%. Commercial Metals's payout ratio is 64.86%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CMC. Heck Capital Advisors LLC purchased a new position in shares of Commercial Metals during the fourth quarter worth approximately $34,000. V Square Quantitative Management LLC raised its position in Commercial Metals by 60.7% during the 4th quarter. V Square Quantitative Management LLC now owns 707 shares of the basic materials company's stock valued at $35,000 after purchasing an additional 267 shares in the last quarter. nVerses Capital LLC purchased a new stake in shares of Commercial Metals in the 3rd quarter worth $66,000. Jones Financial Companies Lllp grew its position in shares of Commercial Metals by 22.0% during the 4th quarter. Jones Financial Companies Lllp now owns 1,646 shares of the basic materials company's stock worth $82,000 after buying an additional 297 shares in the last quarter. Finally, New Age Alpha Advisors LLC purchased a new position in shares of Commercial Metals during the fourth quarter valued at $105,000. 86.90% of the stock is currently owned by institutional investors.

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.