Constellium (NYSE:CSTM) Shares Pass Above 200 Day Moving Average – Here’s Why

Constellium SE (NYSE:CSTM)’s share price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $23.72 and traded as high as $33.54. Constellium shares last traded at $33.2590, with a volume of 3,137,738 shares trading hands.

Analyst Ratings Changes

A number of research analysts have recently weighed in on CSTM shares. Zacks Research raised Constellium from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $40.00 price objective on shares of Constellium in a research report on Thursday, April 30th. 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 report on Thursday, April 30th. BMO Capital Markets set a $32.00 price objective on Constellium and gave the company an “outperform” rating in a research report on Thursday, April 9th. Finally, UBS Group started coverage on Constellium in a research report on Tuesday, May 5th. They set a “buy” rating and a $38.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $36.60.

Constellium Trading Up 6.0%

The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.60 and a current ratio of 1.39. The stock has a market capitalization of $4.80 billion, a PE ratio of 11.40 and a beta of 1.54. The stock has a 50-day moving average price of $29.49 and a two-hundred day moving average price of $23.86.

Constellium (NYSE:CSTM) last posted its quarterly earnings results on Wednesday, April 29th. The industrial products company reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.80. Constellium had a return on equity of 46.22% and a net margin of 4.87%.The company had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.43 billion. During the same period in the previous year, the firm earned $0.26 EPS. The firm’s revenue was up 24.4% compared to the same quarter last year. As a group, equities analysts forecast that Constellium SE will post 3.34 earnings per share for the current year.

Constellium declared that its board has approved a share buyback 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 repurchase up to 8.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Jack Q. Guo sold 41,717 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $25.87, for a total value of $1,079,218.79. Following the transaction, the chief financial officer directly owned 190,879 shares of the company’s stock, valued at approximately $4,938,039.73. The trade was a 17.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michiel Brandjes sold 10,400 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $31.25, for a total value of $325,000.00. Following the completion of the transaction, the director directly owned 41,600 shares in the company, valued at approximately $1,300,000. This represents a 20.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders bought 5,490 shares of company stock worth $167,089 and sold 371,035 shares worth $10,772,766. 1.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Knights of Columbus Asset Advisors LLC purchased a new stake in shares of Constellium during the 3rd quarter worth approximately $1,969,000. JPMorgan Chase & Co. raised its holdings in shares of Constellium by 10.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 2,407,597 shares of the industrial products company’s stock worth $35,825,000 after acquiring an additional 236,264 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp raised its holdings in shares of Constellium by 89.1% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 121,720 shares of the industrial products company’s stock worth $1,811,000 after acquiring an additional 57,337 shares in the last quarter. Y Intercept Hong Kong Ltd raised its holdings in shares of Constellium by 55.0% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 163,261 shares of the industrial products company’s stock worth $2,429,000 after acquiring an additional 57,909 shares in the last quarter. Finally, GW&K Investment Management LLC purchased a new stake in shares of Constellium during the 3rd quarter worth approximately $2,381,000. 92.59% of the stock is owned by hedge funds and other institutional investors.

About Constellium

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.