Constellium (NYSE:CSTM) Shares Down 6% – Time to Sell?

Shares of Constellium SE (NYSE:CSTM) traded down 6% during trading on Friday . The company traded as low as $22.30 and last traded at $22.2870. 346,063 shares changed hands during trading, a decline of 84% from the average session volume of 2,114,191 shares. The stock had previously closed at $23.72.

Analyst Upgrades and Downgrades

CSTM has been the subject of several research reports. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Constellium from $25.00 to $28.00 and gave the company a “buy” rating in a report on Thursday, February 19th. Weiss Ratings reissued a “hold (c)” rating on shares of Constellium in a research report on Monday, December 29th. BMO Capital Markets raised their price target on Constellium from $25.00 to $30.00 and gave the stock an “outperform” rating in a report on Wednesday, February 18th. Zacks Research upgraded shares of Constellium from a “hold” rating to a “strong-buy” rating in a report on Friday, February 20th. Finally, Wells Fargo & Company boosted their target price on shares of Constellium from $25.00 to $29.00 and gave the stock an “overweight” rating in a research report on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $29.00.

Constellium Price Performance

The stock has a market capitalization of $3.00 billion, a price-to-earnings ratio of 11.53 and a beta of 1.48. The company has a 50 day moving average of $24.12 and a 200 day moving average of $19.08. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.51 and a current ratio of 1.29.

Constellium (NYSE:CSTM) last issued its quarterly earnings results on Wednesday, February 18th. The industrial products company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.44. Constellium had a net margin of 3.23% and a return on equity of 32.14%. The business had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same period in the previous year, the business posted ($0.34) earnings per share. The business’s revenue was up 27.9% compared to the same quarter last year. As a group, equities research analysts anticipate that Constellium SE will post 1.1 EPS for the current year.

Constellium announced that its Board of Directors has authorized a share repurchase plan on Thursday, March 12th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the industrial products company to buy up to 8.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Constellium

In other Constellium news, CFO Jack Q. Guo sold 41,717 shares of the company’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total transaction of $1,079,218.79. Following the completion of the sale, the chief financial officer directly owned 190,879 shares of the company’s stock, valued at approximately $4,938,039.73. This represents a 17.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ingrid Joerg sold 4,614 shares of Constellium stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $119,364.18. Following the sale, the chief executive officer directly owned 378,090 shares of the company’s stock, valued at approximately $9,781,188.30. The trade was a 1.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 214,543 shares of company stock worth $5,565,129. 1.54% of the stock is owned by insiders.

Hedge Funds Weigh In On Constellium

Large investors have recently bought and sold shares of the stock. Millennium Management LLC increased its holdings in shares of Constellium by 35.4% during the 3rd quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company’s stock worth $103,204,000 after purchasing an additional 1,813,400 shares during the period. Encompass Capital Advisors LLC lifted its position in shares of Constellium by 59.7% in the 2nd quarter. Encompass Capital Advisors LLC now owns 5,362,760 shares of the industrial products company’s stock worth $71,325,000 after acquiring an additional 2,005,216 shares during the period. Vanguard Group Inc. grew its holdings in shares of Constellium by 22.9% during the 4th quarter. Vanguard Group Inc. now owns 4,054,982 shares of the industrial products company’s stock worth $76,436,000 after purchasing an additional 755,918 shares in the last quarter. Morgan Stanley raised its stake in shares of Constellium by 48.4% in the fourth quarter. Morgan Stanley now owns 3,728,118 shares of the industrial products company’s stock valued at $70,275,000 after purchasing an additional 1,216,516 shares in the last quarter. Finally, State Street Corp lifted its position in Constellium by 3.6% in the fourth quarter. State Street Corp now owns 2,660,518 shares of the industrial products company’s stock worth $50,151,000 after purchasing an additional 92,955 shares during the period. 92.59% of the stock is currently owned by institutional investors and hedge funds.

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.