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John R. McPherson, a director at Commercial Metals Co. (NYSE:CMC), has made a significant purchase of the company's stock, according to a recent SEC filing. On April 4, McPherson acquired 2,475 shares of common stock at a price of $40.42 per share, amounting to a total transaction value of $100,039. This acquisition increases McPherson's direct holdings to 15,141 shares. Additionally, he holds 5,000 shares indirectly through a limited partnership. The purchase comes as CMC trades near its 52-week low of $37.92, with InvestingPro analysis indicating the stock is currently undervalued.
Commercial Metals Co., based in Irving, Texas, operates in the steel industry, focusing on steel works, blast furnaces, and rolling mills. The company has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability. The transaction reflects McPherson's continued investment in the company, aligning with his role as a director and management's broader commitment to shareholder value, as indicated by InvestingPro's comprehensive analysis of insider trading patterns and company fundamentals.
In other recent news, Commercial Metals Company (CMC) reported its financial results for the second quarter of fiscal year 2025, revealing a slight miss on earnings per share (EPS) compared to forecasts. The company posted an EPS of $0.26, falling short of the expected $0.30, while revenue met expectations at $1.75 billion. Despite the earnings miss, the company remains optimistic about future quarters, citing strong demand in key markets such as construction and infrastructure. UBS reiterated its Neutral rating on Commercial Metals with a $49 price target, noting positive developments in import protection measures, including a 25% tariff reinstatement on all imports. These measures are expected to drive earnings momentum and potentially lead to consensus upgrades through 2025.
The UBS analyst highlighted the potential for additional organic growth for Commercial Metals extending into 2026 and beyond. The company is expanding production capabilities and launching new operational initiatives to enhance capacity and efficiency. Looking ahead, CMC expects a financial rebound in the third quarter, driven by increased margins and strong demand across its product lines. The company has revised its full-year capital spending to $550-600 million, reflecting its commitment to growth and operational excellence. CEO Peter Matt expressed confidence in the company's trajectory, particularly in Europe, where market opportunities are emerging.
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