JPMorgan Chase & Co. Lowers Commercial Metals (NYSE:CMC) Price Target to $83.00

Commercial Metals (NYSE:CMC) had its price objective decreased by equities researchers at JPMorgan Chase & Co. from $86.00 to $83.00 in a research note issued on Wednesday, Benzinga reports. The firm currently has an “overweight” rating on the basic materials company’s stock. JPMorgan Chase & Co.‘s price objective suggests a potential upside of 20.89% from the company’s previous close.

Other equities research analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft raised shares of Commercial Metals to a “buy” rating in a report on Friday, May 22nd. UBS Group raised Commercial Metals from a “neutral” rating to a “buy” rating and increased their price objective for the company from $79.00 to $89.00 in a report on Wednesday, May 13th. Barclays boosted their target price on Commercial Metals from $75.00 to $80.00 and gave the company an “equal weight” rating in a research note on Friday, August 7th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $85.00 price target on shares of Commercial Metals in a research report on Thursday, August 6th. Finally, BNP Paribas Exane upgraded Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 price target for the company in a research note on Wednesday, July 8th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $81.64.

Commercial Metals Stock Performance

Shares of CMC traded down $2.10 on Wednesday, reaching $68.66. 353,814 shares of the company’s stock traded hands, compared to its average volume of 1,199,913. The stock’s 50 day simple moving average is $67.96 and its two-hundred day simple moving average is $68.75. The stock has a market cap of $7.60 billion, a PE ratio of 12.93, a PEG ratio of 0.37 and a beta of 1.52. Commercial Metals has a 52-week low of $53.08 and a 52-week high of $84.87. 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 (NYSE:CMC) last issued its quarterly 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 company had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the previous year, the firm earned $0.74 EPS. The firm’s quarterly revenue was up 22.9% on a year-over-year basis. On average, analysts forecast that Commercial Metals will post 6.64 earnings per share for the current fiscal year.

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

Insider Activity

In other news, Director John R. Mcpherson purchased 1,390 shares of the stock in a transaction dated Thursday, August 13th. The shares were purchased at an average cost of $71.92 per share, with a total value of $99,968.80. Following the completion of the acquisition, the director owned 21,927 shares in the company, valued at $1,576,989.84. This represents a 6.77% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Peter R. Matt acquired 8,230 shares of Commercial Metals stock in a transaction that occurred on Friday, July 10th. The shares were purchased at an average cost of $61.30 per share, with a total value of $504,499.00. Following the purchase, the chief executive officer owned 181,522 shares of the company’s stock, valued at $11,127,298.60. This represents a 4.75% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.62% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CMC. USA Financial Formulas increased its holdings in shares of Commercial Metals by 67.6% in the 1st quarter. USA Financial Formulas now owns 496 shares of the basic materials company’s stock worth $30,000 after buying an additional 200 shares during the last quarter. Global Retirement Partners LLC bought a new stake in shares of Commercial Metals during the 2nd quarter worth $34,000. Caitong International Asset Management Co. Ltd grew its position in Commercial Metals by 617.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 832 shares of the basic materials company’s stock worth $58,000 after acquiring an additional 716 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in Commercial Metals in the fourth quarter worth $59,000. Finally, Integrated Wealth Concepts LLC bought a new position in Commercial Metals in the second quarter valued at $63,000. 86.90% of the stock is currently owned by institutional investors.

More Commercial Metals News

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

• Positive Sentiment: Zacks Research raised its full-year EPS forecast for fiscal 2027 to $7.18 from $7.13 and its fiscal 2028 estimate to $7.36 from $7.32. The firm also lifted individual quarterly estimates across fiscal 2027 and 2028, including fiscal 2027 first-quarter EPS to $1.81 from $1.79. These upward revisions indicate slightly improved expectations for CMC’s earnings outlook.
• Neutral Sentiment: The revisions for fiscal 2028 quarters were incremental, with estimates increasing by one cent for each affected quarter: first-quarter EPS to $1.83, second-quarter EPS to $1.55, third-quarter EPS to $1.87, and fourth-quarter EPS to $2.11. The current-year consensus remains $6.64 per share, while Zacks retains a “Hold” rating, limiting the bullish signal.
• Neutral Sentiment: Recent operating results provide supportive context: CMC’s latest quarterly EPS of $1.73 exceeded the $1.70 analyst consensus, while revenue rose 22.9% year over year to $2.48 billion. However, the current analyst updates concern periods well into fiscal 2027 and 2028, so they are unlikely to materially change near-term valuation.

Commercial Metals Company Profile

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.