Constellium SE (NYSE:CSTM) Receives Average Recommendation of “Buy” from Analysts

Constellium SE (NYSE:CSTM) has earned a consensus recommendation of “Buy” from the seven brokerages that are covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold rating, three have given a buy rating and two have issued a strong buy rating on the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $36.60.

CSTM has been the topic of several research analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Constellium in a research note on Tuesday, May 26th. 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. Zacks Research raised Constellium from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. UBS Group assumed coverage on Constellium in a research report on Tuesday, May 5th. They set a “buy” rating and a $38.00 price target on the stock. Finally, Wells Fargo & Company raised their price target on Constellium from $35.00 to $39.00 and gave the stock an “overweight” rating in a research report on Thursday, April 30th.

Insider Activity

In related news, SVP Marcus Becker sold 10,391 shares of the firm’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $34.93, for a total transaction of $362,957.63. Following the sale, the senior vice president directly owned 16,784 shares in the company, valued at $586,265.12. This trade represents a 38.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Bradley Lee Soultz acquired 2,500 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The shares were bought at an average price of $33.84 per share, for a total transaction of $84,600.00. Following the completion of the acquisition, the director owned 2,500 shares of the company’s stock, valued at $84,600. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders sold 195,153 shares of company stock worth $6,369,312. Corporate insiders own 1.20% of the company’s stock.

Institutional Trading of Constellium

Several hedge funds and other institutional investors have recently modified their holdings of CSTM. Arrowstreet Capital Limited Partnership raised its stake in shares of Constellium by 620.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,228,027 shares of the industrial products company’s stock valued at $79,345,000 after purchasing an additional 2,780,260 shares during the period. Healthcare of Ontario Pension Plan Trust Fund raised its stake in shares of Constellium by 894.4% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,056,336 shares of the industrial products company’s stock valued at $50,545,000 after purchasing an additional 1,849,554 shares during the period. Millennium Management LLC raised its position in Constellium by 35.4% in the 3rd 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 raised its position in Constellium by 48.4% in the 4th 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. Finally, Scopus Asset Management L.P. acquired a new stake in Constellium in the 2nd quarter valued at approximately $14,054,000. Institutional investors and hedge funds own 92.59% of the company’s stock.

Constellium Stock Performance

Shares of NYSE:CSTM opened at $34.70 on Friday. The firm’s 50 day simple moving average is $31.98 and its 200 day simple moving average is $25.47. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.39 and a quick ratio of 0.60. The company has a market capitalization of $4.72 billion, a price-to-earnings ratio of 11.23 and a beta of 1.55. Constellium has a fifty-two week low of $12.68 and a fifty-two week high of $36.99.

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

Constellium announced that its Board of Directors has approved a stock repurchase program on Thursday, March 12th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to repurchase up to 8.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its stock is undervalued.

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.