Share Buyback Plan Declared by Commercial Metals (NYSE:CMC) Board of Directors

Commercial Metals (NYSE:CMC) declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 5th, RTT News reports. The company plans to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the basic materials company to buy up to 7.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

CMC has been the subject of several research reports. Barclays lifted their price objective on shares of Commercial Metals from $75.00 to $80.00 and gave the stock an “equal weight” rating in a research note on Friday. Citigroup cut their price objective on Commercial Metals from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. The Goldman Sachs Group restated a “buy” rating and issued a $85.00 price objective on shares of Commercial Metals in a research note on Thursday. Morgan Stanley lifted their target price on Commercial Metals from $83.00 to $88.00 and gave the stock an “overweight” rating in a report on Monday, June 22nd. Finally, JPMorgan Chase & Co. cut their price target on shares of Commercial Metals from $83.00 to $78.00 and set an “overweight” rating on the stock in a report on Tuesday, April 14th. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Commercial Metals currently has a consensus rating of “Moderate Buy” and a consensus target price of $81.18.

Commercial Metals Price Performance

Shares of NYSE CMC opened at $75.17 on Friday. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54. The stock has a market capitalization of $8.32 billion, a price-to-earnings ratio of 14.16, a PEG ratio of 0.42 and a beta of 1.52. The firm’s 50 day simple moving average is $69.80 and its 200-day simple moving average is $70.32. Commercial Metals has a 12 month low of $52.74 and a 12 month high of $84.87.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The firm had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the prior year, the firm posted $0.74 earnings per share. The firm’s quarterly revenue was up 22.9% compared to the same quarter last year. Analysts expect that Commercial Metals will post 6.64 EPS for the current year.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, July 6th were issued a $0.20 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.80 dividend on an annualized basis and a yield of 1.1%. Commercial Metals’s dividend payout ratio is presently 15.07%.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Share buyback supports the stock: Commercial Metals authorized a program to repurchase up to $600 million of its outstanding shares, representing as much as 7.5% of the company’s stock. The authorization signals management believes the shares are undervalued and could support earnings per share by reducing the share count. Commercial Metals to Repurchase $600 Million in Outstanding Shares
• Positive Sentiment: Zacks raises longer-term EPS estimates: Zacks Research increased its forecasts across several periods, including Q1 2027 EPS to $1.79 from $1.77, FY2027 EPS to $7.13 from $7.08, and FY2028 EPS to $7.32 from $7.27. Estimates for Q4 2027, Q1-Q3 2028 were also raised by $0.01 per share, suggesting slightly improved expectations for future profitability.
• Neutral Sentiment: Analyst target rises, but rating remains cautious: BMO Capital Markets lifted its price target for CMC from $77 to $80 while maintaining a “Market Perform” rating. The higher target offers moderate potential upside, but the unchanged rating indicates BMO does not expect substantial outperformance relative to the broader market. BMO Capital Markets Raises Commercial Metals Price Target

Insider Transactions at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt purchased 8,230 shares of the stock in a transaction on Friday, July 10th. The shares were bought at an average price of $61.30 per share, for a total transaction of $504,499.00. Following the completion of the transaction, the chief executive officer owned 181,522 shares of the company’s stock, valued at $11,127,298.60. This trade represents a 4.75% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 0.62% of the company’s stock.

About Commercial Metals

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.