Encompass Capital Advisors LLC Invests $34.23 Million in Commercial Metals Company $CMC

Encompass Capital Advisors LLC acquired a new stake in shares of Commercial Metals Company (NYSE:CMC) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 699,756 shares of the basic materials company’s stock, valued at approximately $34,225,000. Commercial Metals makes up approximately 1.2% of Encompass Capital Advisors LLC’s investment portfolio, making the stock its 28th biggest holding. Encompass Capital Advisors LLC owned about 0.63% of Commercial Metals as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Cetera Investment Advisers lifted its position in shares of Commercial Metals by 5.5% during the first quarter. Cetera Investment Advisers now owns 6,929 shares of the basic materials company’s stock valued at $319,000 after buying an additional 362 shares during the last quarter. National Bank of Canada FI grew its position in shares of Commercial Metals by 80.3% in the 1st quarter. National Bank of Canada FI now owns 548 shares of the basic materials company’s stock worth $25,000 after buying an additional 244 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its stake in shares of Commercial Metals by 148.6% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 58,821 shares of the basic materials company’s stock worth $2,706,000 after acquiring an additional 35,161 shares in the last quarter. Invesco Ltd. lifted its position in Commercial Metals by 37.1% during the first quarter. Invesco Ltd. now owns 1,568,021 shares of the basic materials company’s stock valued at $72,145,000 after acquiring an additional 424,313 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in Commercial Metals in the first quarter valued at approximately $44,345,000. Hedge funds and other institutional investors own 86.90% of the company’s stock.

Commercial Metals Stock Performance

Shares of CMC stock opened at $70.49 on Friday. The business has a fifty day moving average of $60.98 and a 200 day moving average of $56.23. Commercial Metals Company has a 1 year low of $37.92 and a 1 year high of $71.99. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.78 and a quick ratio of 2.03. The firm has a market capitalization of $7.83 billion, a price-to-earnings ratio of 92.76, a price-to-earnings-growth ratio of 0.40 and a beta of 1.49.

Commercial Metals (NYSE:CMC) last posted its quarterly earnings results on Thursday, October 16th. The basic materials company reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.05. Commercial Metals had a return on equity of 8.76% and a net margin of 1.09%.The business had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter in the previous year, the business earned $0.90 EPS. The company’s quarterly revenue was up 5.9% compared to the same quarter last year. As a group, research analysts expect that Commercial Metals Company will post 3.09 earnings per share for the current year.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 13th. Investors of record on Thursday, October 30th were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.0%. The ex-dividend date was Thursday, October 30th. Commercial Metals’s dividend payout ratio is 94.74%.

Insider Transactions at Commercial Metals

In other Commercial Metals news, Director John R. Mcpherson acquired 1,722 shares of the firm’s stock in a transaction on Monday, October 20th. The stock was acquired at an average cost of $58.09 per share, for a total transaction of $100,030.98. Following the purchase, the director owned 6,722 shares in the company, valued at approximately $390,480.98. The trade was a 34.44% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.62% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on CMC shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Commercial Metals in a research report on Wednesday, October 8th. The Goldman Sachs Group boosted their target price on Commercial Metals from $69.00 to $76.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. JPMorgan Chase & Co. raised Commercial Metals from a “neutral” rating to an “overweight” rating and upped their target price for the company from $64.00 to $78.00 in a research report on Friday, December 5th. Zacks Research upgraded Commercial Metals from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 14th. Finally, Morgan Stanley upgraded Commercial Metals from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $57.50 to $68.00 in a research note on Friday, October 24th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, Commercial Metals currently has a consensus rating of “Moderate Buy” and a consensus price target of $66.40.

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.