Commercial Metals (NYSE:CMC) Sees Significant Growth in Short Interest

Commercial Metals (NYSE:CMC) was the target of a large growth in short interest in the month of April. As of April 15th, there was short interest totalling 2,770,000 shares, a growth of 14.5% from the March 31st total of 2,420,000 shares. Currently, 2.4% of the company’s stock are short sold. Based on an average daily trading volume, of 934,000 shares, the days-to-cover ratio is presently 3.0 days.

Insider Activity

In related news, Chairman Barbara Smith sold 23,619 shares of the firm’s stock in a transaction that occurred on Wednesday, February 7th. The shares were sold at an average price of $51.65, for a total value of $1,219,921.35. Following the sale, the chairman now owns 72,400 shares of the company’s stock, valued at $3,739,460. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In the last quarter, insiders sold 119,489 shares of company stock worth $6,371,781. 1.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. SummerHaven Investment Management LLC increased its stake in Commercial Metals by 1.8% during the 4th quarter. SummerHaven Investment Management LLC now owns 13,154 shares of the basic materials company’s stock valued at $658,000 after buying an additional 228 shares during the period. Janney Montgomery Scott LLC lifted its position in shares of Commercial Metals by 1.1% during the 3rd quarter. Janney Montgomery Scott LLC now owns 23,471 shares of the basic materials company’s stock valued at $1,160,000 after acquiring an additional 247 shares during the last quarter. Congress Asset Management Co. MA boosted its stake in shares of Commercial Metals by 0.4% during the 4th quarter. Congress Asset Management Co. MA now owns 67,943 shares of the basic materials company’s stock worth $3,400,000 after acquiring an additional 251 shares in the last quarter. Inspire Investing LLC raised its holdings in Commercial Metals by 4.4% during the 3rd quarter. Inspire Investing LLC now owns 6,237 shares of the basic materials company’s stock worth $308,000 after buying an additional 261 shares during the period. Finally, Diversified Trust Co boosted its holdings in shares of Commercial Metals by 1.2% in the third quarter. Diversified Trust Co now owns 23,810 shares of the basic materials company’s stock worth $1,176,000 after buying an additional 292 shares during the period. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Commercial Metals Price Performance

Shares of NYSE:CMC traded up $1.41 on Monday, reaching $54.89. 649,603 shares of the company were exchanged, compared to its average volume of 973,522. The company has a 50-day moving average of $55.41 and a 200-day moving average of $50.42. The company has a current ratio of 4.19, a quick ratio of 2.69 and a debt-to-equity ratio of 0.27. The firm has a market cap of $6.35 billion, a price-to-earnings ratio of 9.53 and a beta of 1.33. Commercial Metals has a 1-year low of $39.85 and a 1-year high of $59.81.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings data on Thursday, March 21st. The basic materials company reported $0.88 EPS for the quarter, missing analysts’ consensus estimates of $0.93 by ($0.05). The business had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.80 billion. Commercial Metals had a net margin of 8.09% and a return on equity of 17.72%. Commercial Metals’s revenue was down 8.4% on a year-over-year basis. During the same period in the previous year, the company posted $1.44 earnings per share. Equities analysts forecast that Commercial Metals will post 5.34 earnings per share for the current fiscal year.

Commercial Metals Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 10th. Shareholders of record on Monday, April 1st were issued a $0.18 dividend. This is a boost from Commercial Metals’s previous quarterly dividend of $0.16. The ex-dividend date was Thursday, March 28th. This represents a $0.72 annualized dividend and a yield of 1.31%. Commercial Metals’s payout ratio is 12.50%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on CMC shares. BMO Capital Markets raised their price target on Commercial Metals from $52.00 to $60.00 and gave the company a “market perform” rating in a research note on Friday, March 22nd. StockNews.com lowered Commercial Metals from a “buy” rating to a “hold” rating in a research report on Thursday, April 18th. Finally, UBS Group started coverage on Commercial Metals in a report on Tuesday, January 16th. They issued a “buy” rating and a $65.00 price target for the company.

Commercial Metals Company Profile

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.