Deutsche bank took its Commercial Metals [CMC] rating to the equivalent of Hold from Buy, and the price target to $22.0, in a research note dated 2021-01-08. That figure represents around a -5.19% premium from where the company’s shares closed on Thursday. Other analysts also revised their coverage, with Exane BNP Paribas’s analysts downgrading the shares from “an Outperform” rating to “a Neutral” rating in a research note to investors issued in early December. Meanwhile, BofA Securities had lowered its rating on CMC to “Neutral” from the earlier “Buy”, in a research note produced for clients October 16, 2020. In addition, there was no change from Cowen on August 17, 2020. The rater maintained CMC to “a Market perform” but assigned new target price of $22.
Is Commercial Metals Company [NYSE:CMC] a Good Buy Right Now?
It should be noted that CMC technical indicators for short, intermediate as well as long term progress have placed an overall average of 56% as Buy. The average signal changed from 24% Sell in the last week and compares with 8% Sell in the past month. Data from Commercial Metals Company’s Trend Spotter indicated that the signals were Strengthening. The stock current average is 1.24 million shares in the past 20 days and the short term average signal indicates a 50% Buy. In the last 50 days, the average trading volume was 1.18 million shares while the medium term average advocated for Hold. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 1.12 million shares.
CMC Price Performance
On Wall Street, Commercial Metals Company [NYSE:CMC] finished Thursday’s session down -1.23% at $23.20. The stock went up to $24.16 at the same session while its lowest single day price was $23.07. In the last five days, it saw a rise of about 14.40%, Commercial Metals Company shares gained by almost 12.95% since the beginning of the year. However, the share price has dropped to as low as -2.97% below its one year high. On 01/07/21, the company shares recorded $24.16, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $20.33. The company’s shares have inclined by 0.13% in the past year. The 50-day SMA achieved is $20.54 while the 200-day SMA is $19.50. Volume dropped to 2.17 million from 2.57 million in the previous session.
Commercial Metals Company [CMC] Valuation Measures
Notably, Commercial Metals Company [CMC] stock can be classified as a good candidate in the listing of underestimated low-priced Steel companies to purchase soonest possible with the prevailing 12-month PE ratio of 10.02. The measure means the stock is exchanging at a discount as compared to the 17.63x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 0.50 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 0.49 which means CMC serve an attractive investment opportunity compared to its competitors.
CMC Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 22.79 level, and in case of violation of this particular level, it will cause more drop to 22.39 level. On the upper level, 24.57 is still the key resistance. The stock may increase to the subsequent resistance at 23.88. The Relative Strength Index (RSI) pinned on the 14-day chart is 69.68, implying a neutral technical stance while the MACD stands at 1.91, meaning price will increase in the next trading period. Percent R indicator moved to 21.10%, implying bullish price movement. Stochastic %K at 82.38% suggest selling the stock.
What is the short interest in Commercial Metals Company?
Short interest in the Commercial Metals Company stock has plunged, decreasing by -0.8 million shares to total 4.67 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 3.87 million, data from Yahoo Finance shows. The increase of 17.13% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 5.05% of the overall float for the stock.
Commercial Metals Company’s Biggest Shareholders: Who Owns Commercial Metals Company [CMC]?
Filings by BlackRock Fund Advisors showed that the firm now holds a total of 11,873,465 shares or roughly 9.89% of the outstanding CMC shares. This means their shares have reduced by -420,910 from the 11,873,465 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, The Vanguard Group, Inc. updated stake is worth $230,691,316. Details in the latest 13F filings reveal that Dimensional Fund Advisors LP disposed off their -6.75% stake valued at $183,042,864 while Fidelity Management & Research Co added theirs at $137,142,131. During the last quarter, Dimensional Fund Advisors LP liquidated -665,316 of its shares in Commercial Metals Company while Fidelity Management & Research Co bought 442,518 shares. The SSgA Funds Management, Inc.’s holdings currently number 4,924,344 shares at $114244780.8. According to the firm’s last 13F report, FIAM LLC shares in the company at filing stood at 2,963,739 shares, roughly $59,008,043.
CMC Earnings Forecast For The Current Quarter
Commercial Metals Company [CMC] is expected to report weak earnings results for the quarter ending on Nov 2020. Consensus estimates give the company expected revenues of $1.34B and an earnings per share of $0.54 for Nov 2020. Looking further ahead, the company is expected to report revenue of $1.31B at an EPS of $0.45 for Feb 2021. The estimates represent downside of 0.70% and -8.74% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
CMC Earnings Estimates For The Current Year
For the financial year, Commercial Metals Company [NYSE:CMC] is expected to bring in revenue of $5.48B. The returns are nearly $0.0 lower than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 1.8, lower than that of FY20 by -$0.84. Estimates put this year’s earnings growth at -31.80%, -8.30% for the next, and at an annual -9.95% over the next 5-year period. As for sales, forecasts are for a decrease of 0.00% in the current fiscal year and a further 0.70% over the following year.