The stock of Commercial Metals Company (NYSE: CMC) has increased by 2.66 when compared to last closing price of 51.90.Despite this, the company has seen a loss of -2.17% in its stock price over the last five trading days. Zacks Investment Research reported 2023-09-13 that The automotive demand recovery, strength in non-residential construction and a recovery in steel prices should enable the Zacks Steel Producers industry to thrive. PKX, CMC and FSTR are set to gain from favorable industry fundamentals.
Is It Worth Investing in Commercial Metals Company (NYSE: CMC) Right Now?
The price-to-earnings ratio for Commercial Metals Company (NYSE: CMC) is 6.59x, which is above its average ratio. Moreover, the 36-month beta value for CMC is 1.31. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 1 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The average price recommended by analysts for Commercial Metals Company (CMC) is $61.33, which is $8.32 above the current market price. The public float for CMC is 115.45M and currently, short sellers hold a 1.94% of that float. On September 15, 2023, CMC’s average trading volume was 814.18K shares.
CMC’s Market Performance
CMC’s stock has seen a -2.17% decrease for the week, with a -3.22% drop in the past month and a 11.77% gain in the past quarter. The volatility ratio for the week is 2.56%, and the volatility levels for the past 30 days are at 2.41% for Commercial Metals Company. The simple moving average for the past 20 days is -3.06% for CMC’s stock, with a 5.08% simple moving average for the past 200 days.
Analysts’ Opinion of CMC
Many brokerage firms have already submitted their reports for CMC stocks, with UBS repeating the rating for CMC by listing it as a “Buy.” The predicted price for CMC in the upcoming period, according to UBS is $63 based on the research report published on July 11, 2023 of the current year 2023.
CMC Trading at -3.66% from the 50-Day Moving Average
After a stumble in the market that brought CMC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.28% of loss for the given period.
Volatility was left at 2.41%, however, over the last 30 days, the volatility rate increased by 2.56%, as shares sank -4.41% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.95% upper at present.
During the last 5 trading sessions, CMC fell by -2.17%, which changed the moving average for the period of 200-days by +11.07% in comparison to the 20-day moving average, which settled at $54.84. In addition, Commercial Metals Company saw 10.31% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CMC starting from Smith Barbara, who sale 48,300 shares at the price of $56.51 back on Jul 25. After this action, Smith Barbara now owns 283,785 shares of Commercial Metals Company, valued at $2,729,433 using the latest closing price.
Smith Barbara, the Chairman & CEO of Commercial Metals Company, sale 1,700 shares at $56.45 during a trade that took place back on Jul 18, which means that Smith Barbara is holding 332,085 shares at $95,965 based on the most recent closing price.
Stock Fundamentals for CMC
Current profitability levels for the company are sitting at:
- +14.89 for the present operating margin
- +21.00 for the gross margin
The net margin for Commercial Metals Company stands at +13.66. The total capital return value is set at 31.54, while invested capital returns managed to touch 30.76. Equity return is now at value 26.30, with 15.10 for asset returns.
Based on Commercial Metals Company (CMC), the company’s capital structure generated 50.06 points at debt to equity in total, while total debt to capital is 33.36. Total debt to assets is 25.82, with long-term debt to equity ratio resting at 37.26. Finally, the long-term debt to capital ratio is 24.83.
When we switch over and look at the enterprise to sales, we see a ratio of 0.78, with the company’s debt to enterprise value settled at 0.28. The receivables turnover for the company is 7.23 and the total asset turnover is 1.62. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.54.
Conclusion
To wrap up, the performance of Commercial Metals Company (CMC) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
