Constellium (NYSE:CSTM) Hits New 52-Week High - What's Next?

Key Points

• Constellium shares reached a new 52-week high at $30.51 (last $30.3580) as analysts pushed ratings higher, leaving the consensus view at a Buy with an average price target of $29.75 and several firms raising targets to the high-$20s/low-$30s.
• The company reported a strong quarter, beating expectations with $0.80 EPS vs. $0.36 expected and $2.20 billion in revenue (up 27.9% year-over-year), supporting improved sentiment and forward EPS expectations.
• Management approved a $300 million share buyback (up to 8.8% of shares), while insiders sold roughly 214,543 shares last quarter; institutional ownership stands high at 92.59%.

Constellium SE (NYSE:CSTM - Get Free Report) shares reached a new 52-week high on Tuesday . The company traded as high as $30.51 and last traded at $30.3580, with a volume of 2060784 shares. The stock had previously closed at $29.64.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CSTM. Wells Fargo & Company raised their target price on shares of Constellium from $25.00 to $29.00 and gave the stock an "overweight" rating in a research note on Thursday, February 19th. Weiss Ratings reissued a "hold (c)" rating on shares of Constellium in a research note on Monday, December 29th. Zacks Research raised shares of Constellium from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 20th. JPMorgan Chase & Co. raised their target price on shares of Constellium from $26.00 to $29.00 and gave the stock an "overweight" rating in a research note on Thursday, February 19th. Finally, BMO Capital Markets set a $32.00 target price on shares of Constellium and gave the stock an "outperform" rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $29.75.

Constellium Trading Up 2.4%

The stock has a market cap of $4.10 billion, a PE ratio of 15.73 and a beta of 1.43. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.51 and a current ratio of 1.29. The company's 50-day moving average price is $25.40 and its 200 day moving average price is $20.52.

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. The firm had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.05 billion. Constellium had a net margin of 3.23% and a return on equity of 32.14%. The business's revenue for the quarter was up 27.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.34) EPS. On average, sell-side analysts forecast that Constellium SE will post 1.1 EPS for the current fiscal year.

Constellium announced that its board has approved a stock buyback plan 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 reacquire up to 8.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, CFO Jack Q. Guo sold 41,717 shares of Constellium stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $1,079,218.79. Following the completion of the sale, the chief financial officer owned 190,879 shares in the company, valued at approximately $4,938,039.73. This trade represents a 17.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Philippe Hoffmann sold 4,728 shares of Constellium stock in a transaction that occurred 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 owned 182,120 shares of the company's stock, valued at $4,711,444.40. This trade represents a 2.53% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 214,543 shares of company stock worth $5,565,129.

Institutional Trading of Constellium

Institutional investors have recently added to or reduced their stakes in the stock. Farther Finance Advisors LLC increased its holdings in Constellium by 6,985.7% in the 4th quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 1,467 shares during the last quarter. Allworth Financial LP increased its holdings in Constellium by 52.5% in the 4th quarter. Allworth Financial LP now owns 2,074 shares of the industrial products company's stock valued at $39,000 after purchasing an additional 714 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in Constellium by 578.6% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 2,348 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 2,002 shares during the last quarter. GAMMA Investing LLC increased its holdings in Constellium by 29.7% in the 4th quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company's stock valued at $58,000 after purchasing an additional 707 shares during the last quarter. Finally, Quarry LP increased its holdings in Constellium by 53.7% in the 3rd quarter. Quarry LP now owns 5,610 shares of the industrial products company's stock valued at $83,000 after purchasing an additional 1,960 shares during the last quarter. Institutional investors and hedge funds own 92.59% of the company's stock.

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.

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