JPMorgan Chase & Co. Issues Pessimistic Forecast for Commercial Metals (NYSE:CMC) Stock Price

Commercial Metals (NYSE:CMC) had its price target cut by investment analysts at JPMorgan Chase & Co. from $83.00 to $80.00 in a report issued on Friday, Benzinga reports. The firm currently has an “overweight” rating on the basic materials company’s stock. JPMorgan Chase & Co.‘s target price points to a potential upside of 25.13% from the stock’s current price.

A number of other brokerages also recently weighed in on CMC. Barclays boosted their price objective on shares of Commercial Metals from $75.00 to $80.00 and gave the company an “equal weight” rating in a research report on Friday, August 7th. Citigroup decreased their target price on Commercial Metals from $85.00 to $75.00 and set a “buy” rating for the company in a research note on Tuesday, July 7th. The Goldman Sachs Group reiterated a “buy” rating and set a $85.00 price target on shares of Commercial Metals in a research report on Thursday, August 6th. BMO Capital Markets boosted their price objective on Commercial Metals from $77.00 to $80.00 and gave the company a “market perform” rating in a research report on Thursday, August 6th. Finally, Bank of America dropped their target price on Commercial Metals from $84.00 to $78.00 and set a “buy” rating on the stock in a research report on Thursday, July 9th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $80.27.

Commercial Metals Stock Performance

CMC stock traded up $0.83 during trading on Friday, hitting $63.93. 633,564 shares of the company’s stock traded hands, compared to its average volume of 1,191,708. The stock has a market capitalization of $7.07 billion, a price-to-earnings ratio of 12.04, a price-to-earnings-growth ratio of 0.32 and a beta of 1.53. Commercial Metals has a 52 week low of $53.08 and a 52 week high of $84.87. The stock has a fifty day moving average price of $67.76 and a two-hundred day moving average price of $68.20. The company has a quick ratio of 1.54, a current ratio of 2.33 and a debt-to-equity ratio of 0.73.

Commercial Metals declared that its Board of Directors has initiated a stock buyback program on Wednesday, August 5th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the basic materials company to repurchase up to 7.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Commercial Metals

In other Commercial Metals news, Director John McPherson bought 1,390 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the transaction, the director directly owned 21,927 shares in the company, valued at $1,576,989.84. The trade was a 6.77% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.62% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CMC. BlackRock Inc. bought a new stake in shares of Commercial Metals in the 2nd quarter worth $954,989,000. Bank of America Corp DE bought a new stake in Commercial Metals in the second quarter worth about $84,320,000. Bank of New York Mellon Corp acquired a new stake in Commercial Metals in the 2nd quarter valued at about $59,572,000. Encompass Capital Advisors LLC acquired a new stake in Commercial Metals in the 4th quarter valued at about $41,523,000. Finally, Jupiter Topco LLC bought a new position in shares of Commercial Metals during the 2nd quarter valued at about $36,800,000. Institutional investors own 86.90% of the company’s stock.

About Commercial Metals

Commercial Metals Company (NYSE: CMC) is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC’s product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.