Artemis Makes Bold $104 Million Bet on Steel Recycler Commercial Metals
Artemis Makes Bold $104 Million Bet on Steel Recycler Commercial Metals
In a notable move within the materials sector, London-based Artemis Investment Management has initiated a substantial stake in Commercial Metals Company (NYSE: CMC), according to a recent SEC filing. The firm acquired approximately 1.5 million shares in the fourth quarter, a position valued at nearly $104 million.
The investment represents about 1.26% of Artemis's reported 13F assets and comes at a time when Commercial Metals' stock has already seen significant appreciation, climbing nearly 59% over the past year and handily outperforming the broader S&P 500.
Commercial Metals, a major player in steel production and recycling with a strong integrated supply chain, serves construction, manufacturing, and infrastructure markets globally. Analysts point to the company's recent strategic acquisitions—two precast concrete and pipe companies for a combined $2.5 billion—as a potential catalyst for Artemis's interest. These deals are seen as bolstering CMC's higher-margin Construction Solutions Group, shifting its portfolio toward more value-added services.
"This isn't a timid entry," said Michael Reeves, a portfolio manager at Horizon Capital Advisors. "Building a position of this size after such a strong run shows Artemis has deep conviction. They're likely betting on the integration of those new acquisitions to drive the next leg of growth, alongside CMC's industry-leading sustainability profile which is increasingly valuable to clients and investors."
Sarah Chen, an independent market strategist, offered a more skeptical view. "I find the timing perplexing. The EV/EBITDA multiple has expanded sharply. This feels like chasing momentum in a cyclical industry. Artemis might be late to the party, and shareholders could be left holding the bag if infrastructure spending slows."
David Miller, a veteran steel industry analyst, struck a balanced tone. "The vertical integration and recycling focus provide a natural hedge in this business. CMC's model is resilient. While the valuation requires a leap of faith, Artemis's move signals a belief that the company's shift towards solutions and sustainability isn't fully priced in yet."
The investment highlights continued institutional interest in industrial and materials companies that are positioned to benefit from infrastructure renewal and a focus on circular economies.