Wellington Management Group LLP Raises Position in Commercial Metals Company $CMC

Wellington Management Group LLP increased its stake in Commercial Metals Company (NYSE:CMC) by 17.8% during the second quarter, HoldingsChannel reports. The firm owned 435,750 shares of the basic materials company’s stock after acquiring an additional 65,863 shares during the period. Wellington Management Group LLP’s holdings in Commercial Metals were worth $27,343,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Commercial Metals during the 2nd quarter valued at $954,989,000. State Street Corp raised its stake in Commercial Metals by 1.5% in the 4th quarter. State Street Corp now owns 6,361,477 shares of the basic materials company’s stock valued at $440,341,000 after acquiring an additional 91,104 shares during the period. Boston Partners raised its stake in Commercial Metals by 1.9% in the 3rd quarter. Boston Partners now owns 3,641,930 shares of the basic materials company’s stock valued at $208,629,000 after acquiring an additional 67,139 shares during the period. Geode Capital Management LLC lifted its holdings in Commercial Metals by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company’s stock valued at $202,626,000 after purchasing an additional 86,749 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in Commercial Metals by 4.8% during the third quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company’s stock valued at $95,144,000 after purchasing an additional 76,365 shares during the last quarter. 86.90% of the stock is owned by institutional investors.

Analyst Ratings Changes

CMC has been the subject of several recent research reports. BNP Paribas Exane upgraded shares of Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 target price for the company in a research note on Wednesday, July 8th. Zacks Research upgraded shares of Commercial Metals from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Morgan Stanley boosted their target price on shares of Commercial Metals from $83.00 to $88.00 and gave the company an “overweight” rating in a report on Monday, June 22nd. Jefferies Financial Group upgraded Commercial Metals from a “buy” rating to a “buy” rating in a research report on Friday, June 5th. Finally, UBS Group raised Commercial Metals from a “neutral” rating to a “buy” rating and raised their price target for the stock from $79.00 to $89.00 in a report on Wednesday, May 13th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $81.18.

Commercial Metals Price Performance

CMC stock opened at $70.22 on Friday. The firm has a 50 day moving average of $67.69 and a 200-day moving average of $68.94. The company has a current ratio of 2.33, a quick ratio of 1.54 and a debt-to-equity ratio of 0.73. Commercial Metals Company has a 12 month low of $53.08 and a 12 month high of $84.87. The firm has a market capitalization of $7.77 billion, a P/E ratio of 13.22, a price-to-earnings-growth ratio of 0.37 and a beta of 1.52.

Commercial Metals (NYSE:CMC) last posted its earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share 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 business had revenue of $2.48 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same quarter in the prior year, the firm posted $0.74 EPS. Commercial Metals’s revenue was up 22.9% on a year-over-year basis. As a group, sell-side analysts predict that Commercial Metals Company will post 6.64 earnings per share for the current fiscal year.

Commercial Metals Announces Dividend

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

Commercial Metals announced that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $600.00 million in outstanding shares. This repurchase authorization authorizes the basic materials company to repurchase up to 7.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Commercial Metals news, Director John R. Mcpherson bought 1,390 shares of the firm’s stock in a transaction on Thursday, August 13th. The shares were acquired at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the purchase, the director directly owned 21,927 shares of the company’s stock, valued at $1,576,989.84. The trade was a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Peter R. Matt purchased 8,230 shares of the stock in a transaction on Friday, July 10th. The stock was acquired at an average cost of $61.30 per share, for a total transaction of $504,499.00. Following the acquisition, the chief executive officer owned 181,522 shares in the company, valued at approximately $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company 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.