Constellium (NYSE:CSTM) Downgraded to Hold Rating by Zacks Research

Zacks Research lowered shares of Constellium (NYSE:CSTM) from a strong-buy rating to a hold rating in a research report released on Monday morning,Zacks.com reports.

Several other analysts also recently issued reports on the stock. UBS Group initiated coverage on shares of Constellium in a research note on Tuesday, May 5th. They set a “buy” rating and a $38.00 target price on the stock. Wells Fargo & Company raised their target price on Constellium from $35.00 to $39.00 and gave the stock an “overweight” rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $34.00 price target (up from $30.00) on shares of Constellium in a report on Thursday, April 30th. Weiss Ratings raised Constellium from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, June 12th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $40.00 price target on shares of Constellium in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Constellium has an average rating of “Moderate Buy” and a consensus target price of $36.60.

Constellium Price Performance

CSTM stock opened at $31.84 on Monday. The firm has a 50-day moving average of $33.17 and a two-hundred day moving average of $26.97. The firm has a market capitalization of $4.33 billion, a PE ratio of 10.30 and a beta of 1.55. The company has a current ratio of 1.39, a quick ratio of 0.60 and a debt-to-equity ratio of 1.71. Constellium has a one year low of $13.04 and a one year high of $36.99.

Constellium (NYSE:CSTM) last released its quarterly earnings results 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. Constellium had a net margin of 4.87% and a return on equity of 46.22%. The business had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same quarter in the previous year, the business earned $0.26 earnings per share. The firm’s revenue was up 24.4% compared to the same quarter last year. On average, analysts forecast that Constellium will post 3.34 earnings per share for the current year.

Constellium declared that its board has authorized a stock buyback plan on Thursday, March 12th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to buy up to 8.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other Constellium news, SVP Marcus Becker sold 10,391 shares of the company’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $34.93, for a total value of $362,957.63. Following the transaction, the senior vice president directly owned 16,784 shares of the company’s stock, valued at $586,265.12. This represents a 38.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John Ormerod sold 8,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $35.01, for a total value of $280,080.00. Following the completion of the transaction, the director directly owned 24,873 shares in the company, valued at approximately $870,803.73. The trade was a 24.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 195,153 shares of company stock worth $6,369,312. Insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Constellium

Several large investors have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership increased its holdings in Constellium by 620.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,228,027 shares of the industrial products company’s stock worth $79,345,000 after buying an additional 2,780,260 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund lifted its stake in Constellium by 894.4% in the first 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 acquiring an additional 1,849,554 shares during the last quarter. Millennium Management LLC lifted its stake in Constellium by 35.4% in the third quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company’s stock valued at $103,204,000 after acquiring an additional 1,813,400 shares during the last quarter. Morgan Stanley grew its position in Constellium by 48.4% in the fourth quarter. Morgan Stanley now owns 3,728,118 shares of the industrial products company’s stock worth $70,275,000 after acquiring an additional 1,216,516 shares in the last quarter. Finally, Scopus Asset Management L.P. bought a new stake in Constellium in the second quarter worth approximately $14,054,000. Institutional investors own 92.59% of the company’s stock.

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.