Constellium SE (NYSE:CSTM) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Constellium has a “Moderate Buy” consensus rating from seven brokerages, with four buys and three holds. Analysts’ average 12-month price target is $35.80, above the reported share price of $27.11.
• The company exceeded quarterly expectations, posting adjusted EPS of $1.04 versus the $0.86 consensus and revenue of $2.75 billion. Revenue increased 30.7% year over year.
• Institutional ownership stands at 92.59%, supported by new and increased positions from several investors, while two company insiders recently sold shares.

Constellium SE (NYSE:CSTM - Get Free Report) has been given a consensus rating of "Moderate Buy" by the seven brokerages that are currently covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $35.80.

A number of equities research analysts have weighed in on CSTM shares. Wells Fargo & Company raised their target price on Constellium from $37.00 to $39.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft set a $39.00 price objective on Constellium in a research report on Thursday, July 30th. UBS Group reduced their price objective on Constellium from $38.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday, July 8th. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $34.00 target price (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Finally, Zacks Research downgraded Constellium from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th.

Constellium Price Performance

Shares of NYSE:CSTM opened at $27.11 on Wednesday. The firm has a 50 day moving average of $29.69 and a 200-day moving average of $29.25. Constellium has a 12 month low of $13.58 and a 12 month high of $36.99. 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 has a market capitalization of $3.67 billion, a PE ratio of 6.99 and a beta of 1.57.

Constellium (NYSE:CSTM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The industrial products company reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.18. Constellium had a net margin of 5.69% and a return on equity of 51.66%. The business had revenue of $2.75 billion for the quarter, compared to analyst estimates of $2.73 billion. During the same quarter last year, the business posted $0.25 EPS. The firm's revenue for the quarter was up 30.7% on a year-over-year basis. On average, equities research analysts predict that Constellium will post 3.7 EPS for the current fiscal year.

Insider Activity at Constellium

In related news, SVP Marcus Becker sold 10,391 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $34.93, for a total value of $362,957.63. Following the completion of the transaction, the senior vice president 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 Securities & Exchange Commission, which is available at this link. Also, Director John Ormerod sold 8,000 shares of the firm's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $35.01, for a total transaction of $280,080.00. Following the completion of the sale, the director owned 24,873 shares in the company, valued at $870,803.73. This represents a 24.34% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Constellium during the 2nd quarter worth $1,507,000. California State Teachers Retirement System raised its position in Constellium by 3,014.9% in the second quarter. California State Teachers Retirement System now owns 4,539,372 shares of the industrial products company's stock valued at $142,434,000 after purchasing an additional 4,393,640 shares during the last quarter. POM Investment Strategies LLC bought a new position in Constellium in the second quarter valued at about $32,000. HB Wealth Management LLC bought a new position in Constellium in the second quarter valued at about $317,000. Finally, TD Waterhouse Canada Inc. acquired a new stake in shares of Constellium during the second quarter valued at about $5,582,000. 92.59% of the stock is currently owned by 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.

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