Peter Matt, President and CEO of Commercial Metals Co (CMC, Financial), has recently purchased 6200 shares of the company's stock, according to regulatory filings. This move comes amidst a year where the insider has made no sales of the company's stock.
Commercial Metals Co is a manufacturing company that primarily produces and recycles steel and metal products. The company operates in over 20 countries and is one of the largest producers of steel products in the United States. Its products are used in the construction, industrial, and manufacturing sectors.
Insider buying refers to when a company's executives, directors, or other insiders purchase shares of their own company's stock. This is often seen as a positive sign, as it indicates that the insiders believe in the company's future prospects and are willing to invest their own money in it. Conversely, insider selling refers to when these insiders sell their shares. While this can sometimes be seen as a negative sign, it's important to note that insiders may sell for a variety of reasons, such as personal financial needs or portfolio diversification, and not necessarily because they lack confidence in the company.
Over the past year, Peter Matt has purchased 6200 shares in total and sold 0 shares in total. This indicates a strong confidence in the company's future prospects.
The insider transaction history for Commercial Metals Co shows that there have been 1 insiders buys in total over the past year. Meanwhile, there have been 10 insider sells over the same timeframe. This suggests a mixed sentiment among the company's insiders.
Shares of Commercial Metals Co were trading for $40.3 apiece on the day of Peter Matt’s recent buy. This gives the stock a market cap of $4.8 billion.
The price-earnings ratio is 5.08, which is lower than the industry median of 12.16 and lower than the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical valuation.
With a price of $40.3 and a GuruFocus Value $45.17, Commercial Metals Co has a price-to-GF-Value ratio of 0.89. This means the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company’s past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by Peter Matt, coupled with the company's fair valuation and lower-than-average price-earnings ratio, could make Commercial Metals Co an interesting stock for investors to watch.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
