On May 13, 2023, LSV Asset Management made a notable announcement that it had trimmed its position in Commercial Metals (NYSE:CMC) by 4.0% in the fourth quarter. This recent disclosure was filed with the Securities and Exchange Commission (SEC), indicating LSV’s sale of 11,800 shares during the period. As a result of this trade activity, LSV Asset Management now holds approximately 283,500 shares valued at $13,693,000, representing about 0.24% of Commercial Metals’ total assets.
Commercial Metals Co is a basic materials company that is involved in the production, recycling and marketing of steel and metal products. It operates through two major business segments located across North America and Europe: vertically integrated networks of recycling facilities, steel mills and fabrication operations. The North American segment specializes in maximizing efficiencies throughout integrated product lines to produce high quality end products derived from recycled scrap metal while maintaining stringent environmental standards. Meanwhile, the European segment primarily focuses on producing steel-based products through their energy efficient mini mill facility located in Poland.
Shares of CMC opened at $43.57 on Friday with a market capitalization of $5.10 billion backed by a P/E ratio of just 5.04 and beta coefficient of 1.27. Over the past year, CMC has experienced price fluctuations with its low point standing at $31.47 while reaching its highest peak value when trading at $58.09 per share during that period.
Analysts continue to keep an eye on Commercial Metals Co despite the current challenges facing global steel manufacturing companies related to tariffs implemented by governments around the world; however, they also remain optimistic about CMC’s future growth prospects thanks to its diversified presence as integrated suppliers across multiple regions within Europe and North America where demand for premium-grade metals is high.
In summary, LSV Asset Management’s recent announcement detailing their trimmed position in Commercial Metals Co represents a small adjustment to a larger picture of the company’s overall worth and status within its industry. While CMC is currently operating within a challenging market, its diversified presence and high demand for steel-based products position the company for strong future growth prospects over the long term.
Investment Opportunities in Commercial Metals Co. (CMC)
Commercial Metals Co. (CMC) is a leading provider of steel and metal products, embracing recycling and manufacturing processes to match customer needs. Its operations span across North America and Europe, catering to a range of clients worldwide. While the company’s mission has remained consistent over the years, its business strategies have evolved to suit new industrial trends.
Recently, a number of institutional investors and hedge funds have either added or reduced their stakes in CMC. Orion Portfolio Solutions LLC acquired shares with a value of $791,000 during Q4 2023. Premier Fund Managers Ltd added a new position valued at $1,358,000 during the same quarter. Thrivent Financial for Lutherans increased its stake by 4.2%, now holding 33,240 shares worth $1,605,000 after purchasing another 1,350 in the last quarter. Meanwhile, California Public Employees Retirement System raised its holdings by 6%, owning 294,613 shares valued at $14,230,000 from an additional acquisition of 16,557 shares in Q4 2023. Swiss National Bank also acquired an extra 2,800 shares in CMC during the final quarter last year.
The ownership structure reveals that around 84% of the company’s stocks are owned by institutional investors – indicating strong confidence in CMC’s future potential performance.
Equity research analysts have recently offered opinions on CMC’s stock performance as well; Bank of America upgraded it from “neutral” rating to “buy” with a target price increase from $56 to $60 in April this year while Citigroup upped their price objective from $54 to $56 and provided CMC with a “neutral” rating this year in February. Also this March StockNews.com initiated coverage on CMC’s stock performance offering a “hold” rating.
As per reports cited on Bloomberg.com., Commercial Metal’s consensus projection for the stock for now remains as “hold” with an average target price of $53.57.
Commercial Metals Co’s recently announced dividend was paid out on April 12th, with investors receiving a payment of $0.16 per share. The ex-dividend date was last quoted to be March 31st which resulted in the annualized payout ratio being computed at $0.64 and an attractive yield of 1.47%.
In summary, despite only having a “hold” rating presently, CMC is viewed as an impressive and reliable investment-taking advantage of recycling methods and innovations for its manufacturing processes- making it alluring for investors aiming to focus on the global industrial sector today and beyond.
