Wolfe Research has recently reduced Commercial Metals Company (CMC) stock to Peer Perform rating, as announced on October 9, 2024, according to Finviz. Earlier, on September 3, 2024, Jefferies had initiated the stock to Buy, setting a price target of $65. UBS also initiated Buy rating with a price target of $65. Additionally, UBS initiated Buy rating on July 11, 2023, with a target price of $63. BofA Securities analysts, in their report published on April 5, 2023, also raised Buy rating and set a price target of $56 for Commercial Metals Company’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Commercial Metals Company (CMC) Stock Trading Recap
On Tuesday, Commercial Metals Company (CMC) stock saw a modest uptick, ending the day at $54.78 which represents a slight increase of $0.47 or 0.87% from the prior close of $54.31. The stock opened at $54.07 and touched a low of $53.56 during the day, reaching a high of $54.81. The volume of shares traded was 0.94 million exceeding the average volume of 0.77 million.
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CMC Stock Performance and Moving Averages
In recent trading, Commercial Metals Company (CMC) stock price has shown some volatility, fluctuating 2.45% over the last five trades and -0.33% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 1.94%, and it has plunged by -8.85% in the previous three months. Currently, CMC is trading at 2.38%, 3.53%, and 1.02% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CMC, a Basic Materials sector stock, is trading -10.58% below its 52-week high but remains 30.86% above its 52-week low. The Average True Range (ATR) (14 days) of 1.63 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Commercial Metals Company’s Profitability and Valuation Ratios
Commercial Metals Company’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 8.72% and a profit margin of 6.13%, with a gross margin of 1.94%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Commercial Metals Company’s market capitalization stands at $6.24 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 13.23, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.16. Additionally, the Price-to-Sales Ratio is 0.79, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.45, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.14% of Commercial Metals Company (CMC)’s shares, while financial institutions hold 90.57%.
Notable insider trades include Smith Barbara, Executive Chairman at Commercial Metals Company (CMC), who sold 35704 shares on Mar 27 ’24, at $57.88 each, totaling $2.07 million. On Feb 07 ’24, Smith Barbara, Executive Chairman, sold 23619 shares for $51.65 each, amounting to $1.22 million. Additionally, on Feb 02 ’24, Smith Barbara sold 60166 shares at $51.28 each, generating $3.09 million.
