The Citigroup Inc. Downgrades Commercial Metals Co. (CMC) to Neutral

The Citigroup Inc. Downgrades Commercial Metals Co. (CMC) to Neutral

Commercial Metals Co. (NYSE:CMC) was downgraded by stock analysts at Citigroup Inc. from a “buy” rating to a “neutral” rating in a note issued to investors on Thursday.

CMC has been the subject of a number of other reports. TheStreet lowered Commercial Metals from a “buy” rating to a “hold” rating in a research note on Thursday, October 27th. Zacks Investment Research lowered Commercial Metals from a “hold” rating to a “sell” rating in a research note on Tuesday, November 1st. Deutsche Bank AG assumed coverage on Commercial Metals in a research note on Thursday, January 5th. They issued a “buy” rating and a $27.00 price objective for the company. Macquarie lowered Commercial Metals from an “outperform” rating to a “neutral” rating in a research note on Monday, October 31st. Finally, Clarkson Capital raised Commercial Metals from a “sell” rating to a “neutral” rating in a research note on Friday, November 4th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and three have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $20.88.

Commercial Metals (NYSE:CMC) opened at 20.87 on Thursday. The stock’s 50 day moving average price is $22.38 and its 200 day moving average price is $18.20. Commercial Metals has a 1-year low of $12.90 and a 1-year high of $24.64. The stock has a market capitalization of $2.41 billion, a PE ratio of 68.65 and a beta of 1.38.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings results on Monday, January 9th. The company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by $0.06. Commercial Metals had a net margin of 0.79% and a return on equity of 6.77%. The firm had revenue of $1.08 billion for the quarter. During the same period in the previous year, the firm posted $0.22 earnings per share. The company’s revenue was down 6.9% compared to the same quarter last year. On average, equities research analysts predict that Commercial Metals will post $0.96 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, February 1st. Stockholders of record on Tuesday, January 17th will be issued a $0.12 dividend. The ex-dividend date of this dividend is Thursday, January 12th. This represents a $0.48 annualized dividend and a dividend yield of 2.30%. Commercial Metals’s payout ratio is 154.84%.

In other Commercial Metals news, VP Adam B. Batchelor sold 5,372 shares of the firm’s stock in a transaction on Friday, November 11th. The stock was sold at an average price of $20.37, for a total transaction of $109,427.64. Following the transaction, the vice president now directly owns 21,852 shares in the company, valued at approximately $445,125.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Anthony A. Massaro sold 2,421 shares of the firm’s stock in a transaction on Friday, November 11th. The stock was sold at an average price of $20.52, for a total value of $49,678.92. Following the transaction, the director now owns 69,398 shares in the company, valued at $1,424,046.96. The disclosure for this sale can be found here. 1.30% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in Commercial Metals by 29.4% in the second quarter. Vanguard Group Inc. now owns 12,720,314 shares of the company’s stock valued at $214,973,000 after buying an additional 2,888,816 shares during the last quarter. BlackRock Fund Advisors increased its position in Commercial Metals by 5.4% in the third quarter. BlackRock Fund Advisors now owns 8,817,980 shares of the company’s stock valued at $142,763,000 after buying an additional 454,893 shares during the last quarter. State Street Corp increased its position in Commercial Metals by 7.8% in the second quarter. State Street Corp now owns 5,547,931 shares of the company’s stock valued at $93,758,000 after buying an additional 399,112 shares during the last quarter. Bank of New York Mellon Corp increased its position in Commercial Metals by 27.1% in the third quarter. Bank of New York Mellon Corp now owns 3,647,418 shares of the company’s stock valued at $59,052,000 after buying an additional 777,588 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its position in Commercial Metals by 3.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,495,378 shares of the company’s stock valued at $59,072,000 after buying an additional 107,669 shares during the last quarter. Institutional investors own 88.27% of the company’s stock.

About Commercial Metals

Commercial Metals Company, together with its subsidiaries, manufactures, recycles and markets steel and metal products, related materials and services through a network. The Company’s Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment consists of steel mills, commonly referred to as minimills that produce reinforcing bar (rebar), angles, flats and rounds.

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