Wells Fargo & Company Cuts Commercial Metals (NYSE:CMC) Price Target to $77.00

Commercial Metals (NYSE:CMC) had its price objective decreased by Wells Fargo & Company from $80.00 to $77.00 in a research note released on Friday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the basic materials company’s stock.

A number of other equities research analysts have also weighed in on the company. Wall Street Zen upgraded Commercial Metals from a “buy” rating to a “strong-buy” rating in a research report on Friday, November 28th. KeyCorp initiated coverage on Commercial Metals in a report on Wednesday, March 25th. They set a “sector weight” rating for the company. Jefferies Financial Group set a $85.00 price target on Commercial Metals and gave the stock a “buy” rating in a research note on Thursday, January 8th. Citigroup lifted their price target on shares of Commercial Metals from $65.00 to $85.00 and gave the company a “buy” rating in a report on Monday, January 12th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Commercial Metals in a research report on Wednesday, January 21st. Eight research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Commercial Metals currently has a consensus rating of “Moderate Buy” and a consensus target price of $73.00.

Commercial Metals Stock Performance

Shares of NYSE:CMC opened at $58.25 on Friday. The company has a current ratio of 2.38, a quick ratio of 1.55 and a debt-to-equity ratio of 0.75. The company has a 50-day moving average price of $72.60 and a 200-day moving average price of $66.62. The company has a market cap of $6.46 billion, a price-to-earnings ratio of 12.97, a price-to-earnings-growth ratio of 0.32 and a beta of 1.47. Commercial Metals has a 12 month low of $37.92 and a 12 month high of $84.87.

Commercial Metals (NYSE:CMC) last posted its earnings results on Thursday, March 26th. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.28 by ($0.12). Commercial Metals had a return on equity of 13.54% and a net margin of 6.02%.The business had revenue of $2.13 billion during the quarter, compared to the consensus estimate of $2.10 billion. During the same period in the previous year, the business earned $0.26 earnings per share. The firm’s revenue for the quarter was up 21.5% compared to the same quarter last year. As a group, equities analysts anticipate that Commercial Metals will post 3.09 EPS for the current year.

Commercial Metals Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Monday, April 6th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Monday, April 6th. This is a boost from Commercial Metals’s previous quarterly dividend of $0.18. Commercial Metals’s dividend payout ratio (DPR) is 16.04%.

Insider Activity at Commercial Metals

In other Commercial Metals news, insider Jennifer J. Durbin sold 25,050 shares of the stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total value of $2,003,248.50. Following the completion of the transaction, the insider owned 52,880 shares in the company, valued at approximately $4,228,813.60. This represents a 32.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dennis V. Arriola acquired 2,000 shares of the stock in a transaction on Tuesday, January 20th. The shares were purchased at an average cost of $74.69 per share, with a total value of $149,380.00. Following the transaction, the director directly owned 9,238 shares of the company’s stock, valued at approximately $689,986.22. This trade represents a 27.63% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.62% of the company’s stock.

Institutional Trading of Commercial Metals

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Drummond Knight Asset Management Pty Ltd purchased a new stake in Commercial Metals in the third quarter worth about $15,579,000. Allspring Global Investments Holdings LLC lifted its holdings in shares of Commercial Metals by 11.1% during the third quarter. Allspring Global Investments Holdings LLC now owns 225,817 shares of the basic materials company’s stock valued at $13,312,000 after purchasing an additional 22,587 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp boosted its position in shares of Commercial Metals by 430.9% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 29,247 shares of the basic materials company’s stock worth $1,675,000 after purchasing an additional 23,738 shares in the last quarter. Rhumbline Advisers boosted its position in shares of Commercial Metals by 1.3% in the 2nd quarter. Rhumbline Advisers now owns 393,334 shares of the basic materials company’s stock worth $19,238,000 after purchasing an additional 5,147 shares in the last quarter. Finally, American Century Companies Inc. boosted its position in shares of Commercial Metals by 6.6% in the 3rd quarter. American Century Companies Inc. now owns 1,823,923 shares of the basic materials company’s stock worth $104,474,000 after purchasing an additional 112,267 shares in the last quarter. 86.90% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Commercial Metals

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

• Positive Sentiment: Revenue and EBITDA strength — Q2 revenue topped estimates and consolidated core EBITDA roughly doubled year‑over‑year, with meaningful margin expansion driven by the Construction Solutions (precast) acquisition, supporting medium‑term growth and operating leverage. PR Newswire: Q2 Results
• Positive Sentiment: Capital returns and leverage progress — management raised capital returns (dividend increase and buybacks), reported reduced net leverage and reiterated a goal to reach ~2x leverage within the committed timeframe, which supports shareholder value and reduces financing risk. TipRanks: Dividend & Returns
• Positive Sentiment: Management guidance and backlog — the company expects sequential EBITDA gains (CSG strength) and reports healthy bookings/backlog ahead of the construction season, giving a clear operational catalyst for FQ3 improvement. MarketBeat: Outlook
• Neutral Sentiment: Analyst coverage and differing views — some firms (e.g., Bank of America maintained a Buy) continue to support CMC, while others began or adjusted coverage; this keeps the stock on screens but creates mixed sell‑side signals. TipRanks: Analyst Note
• Neutral Sentiment: Technical/positioning commentary — some market pieces argue the pullback is a buying opportunity (institutional accumulation, short interest dynamics), which may blunt downside but depends on execution. MarketBeat: Technical
• Negative Sentiment: EPS miss — adjusted EPS of $1.16 came in below the $1.28 consensus, and that shortfall is the proximate cause of intraday weakness despite the revenue beat. Zacks: Q2 Earnings Miss
• Negative Sentiment: Analyst cuts on forecasts/targets — several firms trimmed forecasts or lowered price targets after the print (Benzinga notes broader cuts; JPMorgan trimmed PT to $83 and Wells Fargo to $77), which increases near‑term selling pressure. Benzinga: Analysts Slash Forecasts
• Negative Sentiment: Market reaction — some outlets report the stock slipped despite strong revenue and backlog, reflecting investor focus on the EPS miss and uncertainty around acquisition accounting/one‑time items. Blockonomi: Stock Reaction

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.