Commercial Metals (NYSE:CMC) Sees Significant Increase 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. Based on an average daily trading volume, of 934,000 shares, the days-to-cover ratio is presently 3.0 days. Approximately 2.4% of the company’s stock are short sold.

Commercial Metals Price Performance

NYSE CMC traded up $1.41 during trading hours on Monday, reaching $54.89. The company’s stock had a trading volume of 649,603 shares, compared to its average volume of 973,522. The firm has a market capitalization 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. The company’s 50-day moving average is $55.41 and its two-hundred day moving average is $50.42. The company has a debt-to-equity ratio of 0.27, a current ratio of 4.19 and a quick ratio of 2.69.

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

Commercial Metals Increases Dividend

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

Analyst Ratings Changes

CMC has been the topic of several recent research reports. StockNews.com cut Commercial Metals from a “buy” rating to a “hold” rating in a research report on Thursday, April 18th. BMO Capital Markets lifted their price objective on shares of Commercial Metals from $52.00 to $60.00 and gave the stock a “market perform” rating in a research report on Friday, March 22nd. Finally, UBS Group began coverage on shares of Commercial Metals in a research note on Tuesday, January 16th. They issued a “buy” rating and a $65.00 target price for the company.

Insiders Place Their Bets

In other Commercial Metals news, Chairman Barbara Smith sold 60,166 shares of the stock in a transaction dated Friday, February 2nd. The shares were sold at an average price of $51.28, for a total transaction of $3,085,312.48. Following the transaction, the chairman now directly owns 96,019 shares in the company, valued at approximately $4,923,854.32. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last ninety days, insiders sold 119,489 shares of company stock worth $6,371,781. 1.00% of the stock is currently owned by company insiders.

Institutional Trading of Commercial Metals

Hedge funds and other institutional investors have recently modified their holdings of the stock. Rise Advisors LLC purchased a new stake in shares of Commercial Metals in the 1st quarter valued at approximately $28,000. HM Payson & Co. purchased a new position in shares of Commercial Metals during the 3rd quarter worth $25,000. Daiwa Securities Group Inc. acquired a new stake in shares of Commercial Metals during the 4th quarter worth about $30,000. SYSTM Wealth Solutions LLC purchased a new stake in Commercial Metals in the 1st quarter valued at about $44,000. Finally, Headlands Technologies LLC purchased a new stake in shares of Commercial Metals in the 3rd quarter valued at approximately $51,000. 86.90% of the stock is owned by institutional investors and hedge funds.

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.