Constellium (NYSE:CSTM) Trading 9.9% Higher – Should You Buy?

Shares of Constellium SE (NYSE:CSTM) traded up 9.9% on Wednesday . The stock traded as high as $27.22 and last traded at $27.0030. 1,667,246 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 2,099,602 shares. The stock had previously closed at $24.58.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on CSTM. JPMorgan Chase & Co. lifted 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. Deutsche Bank Aktiengesellschaft increased their price objective on Constellium from $25.00 to $28.00 and gave the stock a “buy” rating in a report on Thursday, February 19th. Weiss Ratings reiterated a “hold (c)” rating on shares of Constellium in a research note on Monday, December 29th. BMO Capital Markets boosted their target price on shares of Constellium from $25.00 to $30.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Finally, Zacks Research upgraded shares of Constellium from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $29.00.

Constellium Stock Up 10.3%

The company has a market cap of $3.66 billion, a price-to-earnings ratio of 14.11 and a beta of 1.48. The business has a 50-day simple moving average of $24.41 and a two-hundred day simple moving average of $19.68. The company has a quick ratio of 0.51, a current ratio of 1.29 and a debt-to-equity ratio of 1.96.

Constellium (NYSE:CSTM) last issued its quarterly earnings data on Thursday, February 19th. The industrial products company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.44. Constellium had a return on equity of 32.14% and a net margin of 3.23%.The business had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.05 billion. During the same period last year, the business earned ($0.34) EPS. The firm’s revenue was up 27.9% compared to the same quarter last year. As a group, equities analysts forecast that Constellium SE will post 1.1 earnings per share for the current fiscal year.

Constellium declared that its Board of Directors has approved a stock repurchase plan 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 reacquire up to 8.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Jack Q. Guo sold 41,717 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $1,079,218.79. Following the transaction, the chief financial officer directly owned 190,879 shares in the company, valued at approximately $4,938,039.73. This trade represents a 17.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Ingrid Joerg sold 4,614 shares of Constellium stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $25.87, for a total transaction of $119,364.18. Following the completion of the transaction, the chief executive officer owned 378,090 shares in the company, valued at $9,781,188.30. This trade represents a 1.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 214,543 shares of company stock valued at $5,565,129 in the last three months.

Institutional Investors Weigh In On Constellium

Several hedge funds and other institutional investors have recently made changes to their positions in CSTM. 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 during the period. EverSource Wealth Advisors LLC boosted its stake in Constellium by 578.6% during the 3rd 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 grew its holdings in Constellium by 52.5% in the 4th quarter. Allworth Financial LP now owns 2,074 shares of the industrial products company’s stock valued at $39,000 after buying an additional 714 shares during the last quarter. GAMMA Investing LLC grew its holdings in Constellium by 29.7% in the 4th quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company’s stock valued at $58,000 after buying an additional 707 shares during the last quarter. Finally, Quarry LP increased its position in Constellium by 53.7% in the 3rd quarter. Quarry LP now owns 5,610 shares of the industrial products company’s stock worth $83,000 after buying an additional 1,960 shares during the period. 92.59% of the stock is owned by institutional investors and hedge funds.

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.