Constellium (NYSE:CSTM) Reaches New 1-Year High – Time to Buy?

Constellium SE (NYSE:CSTM)’s stock price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $28.29 and last traded at $27.1050, with a volume of 2698772 shares changing hands. The stock had previously closed at $27.83.

Analyst Ratings Changes

CSTM has been the subject of several recent research reports. JPMorgan Chase & Co. boosted their price target on Constellium from $26.00 to $29.00 and gave the company an “overweight” rating in a report on Thursday, February 19th. BMO Capital Markets boosted their price target on Constellium from $25.00 to $30.00 and gave the company an “outperform” rating in a report on Wednesday, February 18th. Wells Fargo & Company boosted their price target on Constellium from $25.00 to $29.00 and gave the company an “overweight” rating in a report on Thursday, February 19th. Zacks Research raised Constellium from a “hold” rating to a “strong-buy” rating in a report on Friday, February 20th. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on Constellium from $25.00 to $28.00 and gave the stock a “buy” rating in a research note on Thursday, February 19th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $29.00.

Constellium Stock Performance

The stock has a market cap of $3.66 billion, a P/E ratio of 14.04 and a beta of 1.43. The company has a quick ratio of 0.51, a current ratio of 1.29 and a debt-to-equity ratio of 1.96. The business has a 50 day moving average price of $24.88 and a two-hundred day moving average price of $20.11.

Constellium (NYSE:CSTM) last released its quarterly earnings data on Thursday, February 19th. The industrial products company reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.44. The firm had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.05 billion. Constellium had a return on equity of 32.14% and a net margin of 3.23%.The business’s quarterly revenue was up 27.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.34) earnings per share. On average, sell-side analysts forecast that Constellium SE will post 1.1 earnings per share for the current fiscal year.

Constellium declared that its board has authorized a share repurchase program on Thursday, March 12th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the industrial products company to reacquire up to 8.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Constellium

In related news, SVP Marcus Becker sold 15,570 shares of the stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $25.58, for a total transaction of $398,280.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Philip Ryan Jurkovic sold 29,900 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $773,513.00. Following the transaction, the senior vice president directly owned 210,723 shares of the company’s stock, valued at approximately $5,451,404.01. The trade was a 12.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 214,543 shares of company stock valued at $5,565,129 in the last 90 days. 1.54% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Constellium

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CSTM. Encompass Capital Advisors LLC boosted its stake in Constellium by 59.7% during the second quarter. Encompass Capital Advisors LLC now owns 5,362,760 shares of the industrial products company’s stock valued at $71,325,000 after buying an additional 2,005,216 shares during the last quarter. Millennium Management LLC boosted its stake in Constellium by 35.4% during the third quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company’s stock valued at $103,204,000 after buying an additional 1,813,400 shares during the last quarter. Morgan Stanley boosted its stake in Constellium by 48.4% during the fourth quarter. Morgan Stanley now owns 3,728,118 shares of the industrial products company’s stock valued at $70,275,000 after buying an additional 1,216,516 shares during the last quarter. Scopus Asset Management L.P. bought a new position in Constellium during the second quarter valued at approximately $14,054,000. Finally, Vanguard Group Inc. boosted its stake in Constellium by 39.7% during the third quarter. Vanguard Group Inc. now owns 3,299,064 shares of the industrial products company’s stock valued at $49,090,000 after buying an additional 938,155 shares during the last quarter. 92.59% of the stock is owned by institutional investors.

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.