Constellium (NYSE:CSTM) Given New $30.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised its price target on Constellium to $30.00 (from $29.00) and rates the stock "overweight," while the analyst consensus is a "Moderate Buy" with an average price target of $31.50.
• Constellium reported a strong quarter—EPS $0.80 vs. $0.36 expected and revenue $2.20B (up 27.9% YoY)—and its board authorized a $300 million share buyback (up to 8.8% of shares outstanding).
• The stock recently traded around $29.87 (near its 12‑month high of $31.20), with a market cap of about $4.07 billion and a trailing P/E of roughly 15.5.

Constellium (NYSE:CSTM - Get Free Report) had its price objective raised by equities researchers at JPMorgan Chase & Co. from $29.00 to $30.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the industrial products company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 0.44% from the stock's previous close.

A number of other equities analysts also recently weighed in on CSTM. Wells Fargo & Company increased their price target on shares of Constellium from $29.00 to $35.00 and gave the stock an "overweight" rating in a research note on Wednesday. Zacks Research downgraded shares of Constellium from a "strong-buy" rating to a "hold" rating in a research note on Monday. BMO Capital Markets set a $32.00 price objective on shares of Constellium and gave the stock an "outperform" rating in a report on Thursday, April 9th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $29.00 price target on shares of Constellium in a report on Thursday, April 9th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Constellium in a research note on Monday, December 29th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $31.50.

Constellium Price Performance

Shares of CSTM stock traded up $0.22 during trading hours on Thursday, hitting $29.87. The company's stock had a trading volume of 997,114 shares, compared to its average volume of 2,166,086. The business has a fifty day moving average of $25.63 and a 200-day moving average of $20.69. The stock has a market cap of $4.07 billion, a price-to-earnings ratio of 15.48 and a beta of 1.43. Constellium has a twelve month low of $8.24 and a twelve month high of $31.20. The company has a current ratio of 1.29, a quick ratio of 0.51 and a debt-to-equity ratio of 1.96.

Constellium (NYSE:CSTM - Get Free Report) last released its quarterly earnings results on Saturday, February 14th. The industrial products company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.36 by $0.44. Constellium had a net margin of 3.23% and a return on equity of 32.14%. The business had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same period in the prior year, the business earned ($0.34) earnings per share. The company's quarterly revenue was up 27.9% on a year-over-year basis. As a group, equities research analysts anticipate that Constellium will post 1.1 EPS for the current year.

Constellium announced that its board has initiated a stock repurchase program on Thursday, March 12th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Constellium

In related news, CEO Ingrid Joerg sold 4,614 shares of the business'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 $119,364.18. Following the completion of the sale, the chief executive officer directly owned 378,090 shares of the company's stock, valued at $9,781,188.30. The trade was a 1.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Philippe Hoffmann sold 4,728 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total transaction of $122,313.36. Following the completion of the sale, the insider directly owned 182,120 shares of the company's stock, valued at approximately $4,711,444.40. This trade represents a 2.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 214,543 shares of company stock worth $5,565,129. 1.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Constellium

A number of institutional investors and hedge funds have recently made changes to their positions in CSTM. Farther Finance Advisors LLC increased its stake in shares of Constellium by 6,985.7% during the fourth quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company's stock worth $28,000 after acquiring an additional 1,467 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Constellium by 578.6% during the third quarter. EverSource Wealth Advisors LLC now owns 2,348 shares of the industrial products company's stock valued at $35,000 after buying an additional 2,002 shares during the period. Allworth Financial LP lifted its stake in shares of Constellium by 52.5% during the fourth 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 period. GAMMA Investing LLC lifted its stake in shares of Constellium by 29.7% during the fourth 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 period. Finally, Quarry LP lifted its stake in shares of Constellium by 53.7% during the third quarter. Quarry LP now owns 5,610 shares of the industrial products company's stock valued at $83,000 after buying an additional 1,960 shares during the period. 92.59% of the stock is owned by hedge funds and other 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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