Constellium (NYSE:CSTM) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Constellium from “strong buy” to “hold,” while the broader analyst consensus remains “moderate buy” with a $35.60 target price.
• Constellium opened at $25.40, well below its 52-week high of $36.99. The company recently exceeded quarterly earnings expectations, reporting $1.04 in EPS versus the $0.86 consensus and 30.7% year-over-year revenue growth.
• Institutional investors own 92.59% of the company, and Director Jean-Christophe Deslarzes purchased 1,490 shares worth approximately $40,588, increasing his stake by 3.55%.

Constellium (NYSE:CSTM - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other equities analysts have also recently issued reports on CSTM. Deutsche Bank Aktiengesellschaft set a $39.00 price target on shares of Constellium in a research report on Thursday, July 30th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Constellium in a report on Monday, September 28th. Wells Fargo & Company reduced their price objective on shares of Constellium from $39.00 to $38.00 and set an "overweight" rating on the stock in a research note on Friday, September 18th. Finally, UBS Group decreased their price objective on Constellium from $38.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $35.60.

Constellium Stock Performance

NYSE:CSTM opened at $25.40 on Tuesday. The stock has a market cap of $3.44 billion, a P/E ratio of 6.55 and a beta of 1.57. The company has a current ratio of 1.43, a quick ratio of 0.61 and a debt-to-equity ratio of 1.50. The stock's 50-day moving average is $26.86 and its 200-day moving average is $29.44. Constellium has a 1-year low of $14.39 and a 1-year high of $36.99.

Constellium (NYSE:CSTM - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The industrial products company reported $1.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.18. Constellium had a return on equity of 51.66% and a net margin of 5.69%.The company had revenue of $2.75 billion during the quarter, compared to the consensus estimate of $2.73 billion. During the same quarter in the prior year, the firm posted $0.25 earnings per share. The firm's revenue was up 30.7% compared to the same quarter last year. Equities research analysts anticipate that Constellium will post 3.7 earnings per share for the current year.

Insider Activity at Constellium

In other news, Director Jean-Christophe Deslarzes acquired 1,490 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was bought at an average cost of $27.24 per share, for a total transaction of $40,587.60. Following the completion of the transaction, the director directly owned 43,515 shares in the company, valued at $1,185,348.60. This represents a 3.55% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Constellium

A number of hedge funds have recently bought and sold shares of CSTM. Encompass Capital Advisors LLC grew its holdings in Constellium by 9.2% during 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 acquiring an additional 393,640 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in shares of Constellium by 620.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,228,027 shares of the industrial products company's stock valued at $79,345,000 after purchasing an additional 2,780,260 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund boosted its position in shares of Constellium by 894.4% during the 1st 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 purchasing an additional 1,849,554 shares in the last quarter. SG Americas Securities LLC boosted its position in shares of Constellium by 53.6% during the 1st quarter. SG Americas Securities LLC now owns 1,497,460 shares of the industrial products company's stock valued at $36,808,000 after purchasing an additional 522,725 shares in the last quarter. Finally, Beaconlight Capital LLC grew its stake in Constellium by 5.2% during the fourth quarter. Beaconlight Capital LLC now owns 1,339,934 shares of the industrial products company's stock worth $25,258,000 after purchasing an additional 66,429 shares during the period. Institutional investors own 92.59% of the company's stock.

Constellium Company Profile

Constellium SE NYSE: CSTM is a global manufacturer of advanced aluminum products and solutions. The company develops, engineers and produces aluminum rolled, extruded and shaped products for customers in the aerospace, automotive, packaging and industrial markets.

Its products include aluminum sheets, plates, coils, extrusions, structural components and automotive body systems. Constellium also supplies aluminum products used in beverage cans, bottles and other packaging applications, as well as components for aircraft structures, automotive vehicles, commercial transportation and industrial equipment.

Constellium serves customers through manufacturing and research operations across Europe, North America and Asia.

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