Constellium (NYSE:CSTM) Sets New 12-Month High – Here’s Why

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

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Wells Fargo & Company lifted their target price on shares of Constellium from $35.00 to $39.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $34.00 target price (up from $30.00) on shares of Constellium in a research note on Thursday, April 30th. UBS Group assumed coverage on shares of Constellium in a research note on Tuesday, May 5th. They issued a “buy” rating and a $38.00 target price on the stock. 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. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $40.00 price objective on shares of Constellium in a research report on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Constellium presently has a consensus rating of “Buy” and a consensus target price of $36.60.

Constellium Trading Up 6.0%

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’s 50-day simple moving average is $29.27 and its 200-day simple moving average is $23.72. The firm has a market capitalization of $4.80 billion, a PE ratio of 11.40 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 business had revenue of $2.46 billion for 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 quarterly revenue was up 24.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.26 EPS. As a group, sell-side analysts expect that Constellium SE will post 3.34 EPS for the current fiscal year.

Constellium announced that its board has authorized a share buyback program on Thursday, March 12th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the industrial products company to repurchase up to 8.8% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Constellium

In other news, SVP Martin Jarrett sold 4,716 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $33.46, for a total value of $157,797.36. Following the sale, the senior vice president directly owned 15,375 shares of the company’s stock, valued at $514,447.50. This represents a 23.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Ludovic Piquier sold 1,000 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $33.57, for a total transaction of $33,570.00. Following the completion of the sale, the senior vice president directly owned 241,713 shares in the company, valued at $8,114,305.41. This represents a 0.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders bought 5,490 shares of company stock worth $167,089 and sold 374,235 shares worth $10,855,038. 1.20% of the stock is owned by corporate insiders.

Institutional Trading of Constellium

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Millennium Management LLC grew its position in shares of Constellium by 35.4% in the 3rd quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company’s stock worth $103,204,000 after buying an additional 1,813,400 shares during the period. Encompass Capital Advisors LLC grew its position in shares of Constellium by 9.2% in the 4th quarter. Encompass Capital Advisors LLC now owns 4,657,915 shares of the industrial products company’s stock worth $87,802,000 after buying an additional 393,640 shares during the period. Vanguard Group Inc. grew its position in shares of Constellium by 22.9% in the 4th quarter. Vanguard Group Inc. now owns 4,054,982 shares of the industrial products company’s stock worth $76,436,000 after buying an additional 755,918 shares during the period. Morgan Stanley boosted its stake in Constellium by 48.4% in the 4th quarter. Morgan Stanley now owns 3,728,118 shares of the industrial products company’s stock worth $70,275,000 after purchasing an additional 1,216,516 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in 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 worth $79,345,000 after purchasing an additional 2,780,260 shares in the last quarter. 92.59% of the stock is owned by hedge funds and other 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.