Peter Matt, President and CEO of Commercial Metals Co. (CMC), recently bought 6,100 shares. The buy increased his stake by 5%, and came to a total cost of $294,630.
Matt was the last insider to buy with a 6,200 share pickup for about $250,000 back in late 2023. Otherwise, there were some sizeable insider sales in 2024, mostly from the company’s Chairman of the Board, at slightly higher prices than where shares trade today.
Overall, Commercial Metals insiders own 0.9% of shares.
The steel recycler and manufacturer is down 21% over the past year, reflecting the challenges of the steel industry, where low prices and lower manufacturing costs overseas have weighed on returns.
Commercial Metals has seen earnings growth slide by a hefty 70% over the past year, and revenues are down by 5%. However, as a domestic producer, Commercial Metals may be a beneficiary of rising tariffs on goods such as steel.
Action to take: Shares have been trending lower, and are near 52-week lows. However, Commercial Metals trades at about 16 times forward earnings, making shares a reasonable value for commodity-stock investors here.
At current prices, Commercial Metals also pays a 1.6% dividend.
For traders, the June $50 calls, last trading for about $1.75, could see high double-digit returns on a bounce higher from the low level of shares in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
