Constellium (NYSE:CSTM) Upgraded by Zacks Research to Strong-Buy Rating

Constellium (NYSE:CSTM) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other analysts have also commented on CSTM. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $34.00 price objective (up from $30.00) on shares of Constellium in a research note on Thursday, April 30th. Wells Fargo & Company increased their price objective on Constellium from $35.00 to $39.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. UBS Group started coverage on Constellium in a research note on Tuesday, May 5th. They set a “buy” rating and a $38.00 price objective on the stock. BMO Capital Markets set a $32.00 price objective on Constellium and gave the company an “outperform” rating in a research note on Thursday, April 9th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $40.00 price objective on shares of Constellium in a research note on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Constellium has an average rating of “Buy” and a consensus target price of $36.60.

Constellium Trading Up 3.7%

Shares of CSTM stock opened at $34.54 on Tuesday. Constellium has a fifty-two week low of $11.23 and a fifty-two week high of $34.61. The stock has a market cap of $4.70 billion, a P/E ratio of 11.18 and a beta of 1.54. The business has a fifty day simple moving average of $28.16 and a 200-day simple moving average of $22.81. The company has a quick ratio of 0.60, a current ratio of 1.39 and a debt-to-equity ratio of 1.71.

Constellium (NYSE:CSTM) last posted its quarterly earnings data on Wednesday, April 29th. The industrial products company reported $1.42 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.80. The business had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.43 billion. Constellium had a return on equity of 46.22% and a net margin of 4.87%.The business’s revenue for the quarter was up 24.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.26 earnings per share. On average, analysts forecast that Constellium will post 3.34 earnings per share for the current fiscal year.

Constellium announced that its Board of Directors has initiated a share repurchase program on Thursday, March 12th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Constellium

In other Constellium news, Director Michiel Brandjes sold 10,400 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $31.25, for a total value of $325,000.00. Following the sale, the director directly owned 41,600 shares of the company’s stock, valued at approximately $1,300,000. This trade represents a 20.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jack Q. Guo sold 25,201 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $32.62, for a total value of $822,056.62. Following the completion of the sale, the chief financial officer directly owned 185,368 shares in the company, valued at approximately $6,046,704.16. The trade was a 11.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 386,589 shares of company stock worth $11,133,606 in the last quarter. 1.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Constellium

A number of hedge funds have recently added to or reduced their stakes in the business. Sei Investments Co. boosted its stake in Constellium by 159.2% in the 1st quarter. Sei Investments Co. now owns 231,774 shares of the industrial products company’s stock worth $5,697,000 after buying an additional 142,340 shares during the last quarter. Walleye Capital LLC purchased a new position in shares of Constellium in the 1st quarter worth about $496,000. Globeflex Capital L P purchased a new position in shares of Constellium in the 1st quarter worth about $635,000. State of Wyoming raised its holdings in shares of Constellium by 5.1% in the 1st quarter. State of Wyoming now owns 35,655 shares of the industrial products company’s stock worth $876,000 after purchasing an additional 1,728 shares during the period. Finally, Cetera Investment Advisers purchased a new position in shares of Constellium in the 1st quarter worth about $2,644,000. 92.59% of the stock is owned by institutional investors and hedge funds.

More Constellium News

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: Constellium’s latest quarterly results were well above expectations, with EPS of $1.42 versus $0.62 expected and revenue of $2.46 billion topping estimates, reinforcing the company’s operational strength. MarketBeat CSTM earnings and stock page
• Positive Sentiment: Several analysts remain constructive, including JPMorgan, Wells Fargo, and UBS, with price targets up to $39 and an average target above the current trading range, which may be supporting investor sentiment. MarketBeat CSTM analyst coverage
• Positive Sentiment: The company also has a $300 million share repurchase authorization, which can signal management believes the stock remains undervalued and can provide ongoing support for the shares. MarketBeat CSTM buyback info
• Neutral Sentiment: Constellium’s share price has moved close to its 52-week high, and recent commentary notes the stock has surged substantially over the past year, suggesting some investors may be weighing momentum against valuation. Yahoo Finance article on CSTM’s one-year surge
• Negative Sentiment: Multiple insiders, including SVP Ludovic Piquier, Nicolas Brun, and Stephane Corre, sold shares this week, which can create pressure on the stock because it may be interpreted as reduced insider confidence. GuruFocus CSTM article

Constellium Company Profile

Constellium SE is a global leader in the design and manufacture of high-performance aluminum products and solutions. The company serves key markets including aerospace, automotive, and packaging, offering advanced rolled and extruded aluminum sheet, plate and structural components. Its product portfolio encompasses precision-engineered parts for commercial and military aircraft, automotive body structures and closures, beverage and specialty packaging, as well as industrial and structural applications.

Established in 2011 through the consolidation of Rio Tinto Alcan’s rolled-products and engineered-products businesses, Constellium has built a reputation for innovation in lightweighting and sustainability.