Traders Buy Large Volume of Commercial Metals Call Options (CMC)

Commercial Metals (NYSE:CMC) was the target of some unusual options trading on Thursday. Traders purchased 2,803 call options on the company. This represents an increase of 1,423% compared to the average daily volume of 184 call options.

A number of research analysts have commented on CMC shares. Jefferies Group upgraded Commercial Metals from a “hold” rating to a “buy” rating in a research note on Tuesday, October 17th. Zacks Investment Research upgraded Commercial Metals from a “sell” rating to a “hold” rating and set a $24.00 price objective on the stock in a research note on Tuesday, October 17th. Finally, Bank of America upgraded Commercial Metals from a “neutral” rating to a “buy” rating and increased their price objective for the company from $21.00 to $24.00 in a research note on Thursday, December 7th. Four equities research analysts have rated the stock with a sell rating and five have issued a buy rating to the stock. Commercial Metals presently has an average rating of “Hold” and an average target price of $21.88.

In related news, EVP Tracy L. Porter sold 13,601 shares of the company’s stock in a transaction that occurred on Thursday, January 18th. The stock was sold at an average price of $25.04, for a total value of $340,569.04. Following the transaction, the executive vice president now directly owns 10 shares in the company, valued at $250.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Tracy L. Porter sold 6,935 shares of the company’s stock in a transaction that occurred on Tuesday, January 16th. The shares were sold at an average price of $25.14, for a total value of $174,345.90. Following the completion of the transaction, the executive vice president now owns 10 shares in the company, valued at $251.40. The disclosure for this sale can be found here. 1.50% of the stock is owned by corporate insiders.

Several hedge funds have recently modified their holdings of CMC. Schwab Charles Investment Management Inc. grew its holdings in shares of Commercial Metals by 3.6% during the second quarter. Schwab Charles Investment Management Inc. now owns 615,915 shares of the basic materials company’s stock worth $11,968,000 after purchasing an additional 21,272 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Commercial Metals by 9.8% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,853 shares of the basic materials company’s stock worth $114,000 after buying an additional 522 shares during the period. Principal Financial Group Inc. boosted its stake in shares of Commercial Metals by 3.6% during the second quarter. Principal Financial Group Inc. now owns 487,632 shares of the basic materials company’s stock worth $9,475,000 after buying an additional 16,719 shares during the period. Wells Fargo & Company MN boosted its stake in shares of Commercial Metals by 19.0% during the second quarter. Wells Fargo & Company MN now owns 223,851 shares of the basic materials company’s stock worth $4,350,000 after buying an additional 35,718 shares during the period. Finally, Alliancebernstein L.P. boosted its stake in shares of Commercial Metals by 7.2% during the second quarter. Alliancebernstein L.P. now owns 368,769 shares of the basic materials company’s stock worth $7,165,000 after buying an additional 24,884 shares during the period. 88.77% of the stock is currently owned by institutional investors.

Commercial Metals (NYSE CMC) traded up $0.90 during trading hours on Wednesday, reaching $24.74. The company had a trading volume of 1,527,719 shares, compared to its average volume of 2,079,407. The stock has a market capitalization of $2,687.19, a price-to-earnings ratio of 36.12 and a beta of 1.27. The company has a quick ratio of 2.07, a current ratio of 3.20 and a debt-to-equity ratio of 0.56. Commercial Metals has a 52-week low of $17.05 and a 52-week high of $25.90.

Commercial Metals (NYSE:CMC) last issued its quarterly earnings data on Wednesday, January 3rd. The basic materials company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.14. The company had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.18 billion. Commercial Metals had a return on equity of 8.08% and a net margin of 1.53%. The business’s quarterly revenue was up 24.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.06 earnings per share. equities research analysts anticipate that Commercial Metals will post 1.42 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 31st. Shareholders of record on Tuesday, January 16th were issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 1.94%. The ex-dividend date was Friday, January 12th. Commercial Metals’s payout ratio is 72.73%.

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About Commercial Metals

Commercial Metals Company, together with its subsidiaries, manufactures, recycles and markets steel and metal products, related materials and services through a network. The Company’s Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment consists of steel mills, commonly referred to as minimills that produce reinforcing bar (rebar), angles, flats and rounds.

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