Constellium (NYSE:CSTM) Hits New 1-Year High – Here’s Why

Shares of Constellium SE (NYSE:CSTM) hit a new 52-week high on Tuesday . The stock traded as high as $35.03 and last traded at $34.99, with a volume of 830430 shares changing hands. The stock had previously closed at $33.24.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CSTM. UBS Group began coverage on shares of Constellium in a report on Tuesday, May 5th. They set a “buy” rating and a $38.00 price target on the stock. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $34.00 price objective (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $40.00 target price on shares of Constellium in a research note on Thursday, April 30th. Wells Fargo & Company lifted their price target on Constellium from $35.00 to $39.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Finally, Zacks Research raised Constellium from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 12th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $36.60.

Constellium Price Performance

The company’s 50-day moving average price is $29.84 and its 200-day moving average price is $24.12. The company has a quick ratio of 0.60, a current ratio of 1.39 and a debt-to-equity ratio of 1.71. The firm has a market cap of $4.68 billion, a price-to-earnings ratio of 11.12 and a beta of 1.54.

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

Constellium announced that its board has initiated a stock buyback program on Thursday, March 12th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the industrial products company to repurchase up to 8.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Bradley Lee Soultz acquired 2,500 shares of Constellium stock in a transaction dated Thursday, May 14th. The stock was acquired at an average price of $33.84 per share, for a total transaction of $84,600.00. Following the transaction, the director owned 2,500 shares of the company’s stock, valued at $84,600. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Nicolas Brun sold 26,661 shares of Constellium stock in a transaction on Monday, May 11th. The stock was sold at an average price of $33.85, for a total transaction of $902,474.85. Following the sale, the senior vice president owned 104,891 shares in the company, valued at $3,550,560.35. This represents a 20.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders acquired 5,490 shares of company stock valued at $167,089 and sold 361,035 shares valued at $10,515,066. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Constellium

Hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC grew its position in Constellium by 6,985.7% during the 4th quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 1,467 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Constellium by 578.6% in the third quarter. EverSource Wealth Advisors LLC now owns 2,348 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 2,002 shares during the period. Allworth Financial LP raised its stake in shares of Constellium by 52.5% during the fourth quarter. Allworth Financial LP now owns 2,074 shares of the industrial products company’s stock worth $39,000 after purchasing an additional 714 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Constellium by 29.7% during the fourth quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company’s stock worth $58,000 after purchasing an additional 707 shares during the period. Finally, Quarry LP lifted its holdings in shares of Constellium by 53.7% during the third quarter. Quarry LP now owns 5,610 shares of the industrial products company’s stock worth $83,000 after purchasing an additional 1,960 shares during the period. 92.59% of the stock is currently 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.