Constellium (NYSE:CSTM) Shares Gap Down – What’s Next?

Constellium SE (NYSE:CSTM) shares gapped down before the market opened on Wednesday . The stock had previously closed at $35.28, but opened at $33.00. Constellium shares last traded at $32.8120, with a volume of 1,395,612 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on CSTM. Weiss Ratings reissued a “hold (c+)” rating on shares of Constellium in a report on Tuesday. Zacks Research raised shares of Constellium from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 12th. Wells Fargo & Company upped their target price on shares of Constellium from $35.00 to $39.00 and gave the company an “overweight” rating in a report on Thursday, April 30th. UBS Group initiated coverage on shares of Constellium in a research report on Tuesday, May 5th. They set a “buy” rating and a $38.00 price objective for the company. Finally, BMO Capital Markets set a $32.00 price objective on shares of Constellium and gave the company an “outperform” rating in a research report on Thursday, April 9th. Two investment 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’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $36.60.

Constellium Stock Performance

The business’s 50-day moving average price is $29.84 and its 200-day moving average price is $24.12. 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 cap of $4.68 billion, a P/E ratio of 11.12 and a beta of 1.54.

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

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

Insider Transactions at Constellium

In other news, SVP Ludovic Piquier sold 1,000 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $33.57, for a total value of $33,570.00. Following the completion of the sale, the senior vice president directly owned 241,713 shares of the company’s stock, valued at $8,114,305.41. This represents a 0.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Nicolas Brun sold 26,661 shares of the 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 completion of the sale, the senior vice president directly owned 104,891 shares of the company’s stock, valued at approximately $3,550,560.35. This trade 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 quarter, insiders bought 5,490 shares of company stock valued at $167,089 and sold 358,035 shares valued at $10,440,996. 1.20% of the stock is currently owned by company insiders.

Institutional Trading of Constellium

Hedge funds and other institutional investors have recently modified their holdings of the company. Farther Finance Advisors LLC increased its stake in shares of Constellium by 6,985.7% in the fourth 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 in the last quarter. EverSource Wealth Advisors LLC increased its stake 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 worth $35,000 after purchasing an additional 2,002 shares in the last quarter. Allworth Financial LP grew its stake in Constellium by 52.5% during the fourth quarter. Allworth Financial LP now owns 2,074 shares of the industrial products company’s stock valued at $39,000 after acquiring an additional 714 shares in the last quarter. GAMMA Investing LLC grew its stake in Constellium by 29.7% during the fourth quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company’s stock valued at $58,000 after acquiring an additional 707 shares in the last quarter. Finally, Quarry LP grew its stake in Constellium by 53.7% during the third quarter. Quarry LP now owns 5,610 shares of the industrial products company’s stock valued at $83,000 after acquiring an additional 1,960 shares in the last quarter. 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.