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

Key Points

• Zacks Research downgraded Constellium from "strong-buy" to "hold," though most other analysts still rate the stock Buy/Overweight and the consensus price target is about $29.75.
• Strong quarterly beat: Constellium reported $0.80 EPS vs. $0.36 expected and $2.20B revenue (up 27.9% YoY), and its board authorized a $300 million share buyback (up to ~8.8% of shares).
• Insider selling amid heavy institutional ownership: insiders sold roughly 214,543 shares (~$5.57M) last quarter, while institutional investors own about 92.6% of the stock.

Constellium (NYSE:CSTM - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

Several other equities analysts also recently weighed in on the stock. JPMorgan Chase & Co. raised their price target 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. BMO Capital Markets set a $32.00 price target on shares of Constellium and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Wells Fargo & Company raised their price target 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. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $29.00 price target on shares of Constellium in a research note on Thursday, April 9th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $29.75.

Constellium Stock Performance

NYSE:CSTM opened at $30.54 on Monday. The company's 50-day moving average price is $25.52 and its 200-day moving average price is $20.63. The company has a current ratio of 1.29, a quick ratio of 0.51 and a debt-to-equity ratio of 1.96. The company has a market cap of $4.16 billion, a P/E ratio of 15.82 and a beta of 1.43. Constellium has a twelve month low of $8.24 and a twelve month high of $30.85.

Constellium (NYSE:CSTM - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The industrial products company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.44. The firm had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.05 billion. Constellium had a net margin of 3.23% and a return on equity of 32.14%. The company's revenue for the quarter was up 27.9% on a year-over-year basis. During the same period last year, the firm posted ($0.34) earnings per share. On average, sell-side analysts forecast that Constellium will post 1.1 earnings per share for the current fiscal year.

Constellium announced that its Board of Directors has authorized a share repurchase plan on Thursday, March 12th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the industrial products company to repurchase up to 8.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Constellium

In other Constellium news, insider Philippe Hoffmann sold 4,728 shares of Constellium stock in a transaction dated 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 in the company, valued at $4,711,444.40. This trade represents a 2.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Philip Ryan Jurkovic sold 29,900 shares of Constellium stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total transaction of $773,513.00. Following the sale, the senior vice president owned 210,723 shares of the company's stock, valued at approximately $5,451,404.01. This represents a 12.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 214,543 shares of company stock valued at $5,565,129.

Institutional Investors Weigh In On Constellium

Institutional investors have recently made changes to their positions in the stock. Farther Finance Advisors LLC increased its position 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 valued at $28,000 after acquiring an additional 1,467 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Constellium by 578.6% in the third 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 in the last quarter. Allworth Financial LP grew its holdings in shares of Constellium by 52.5% in the fourth 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 in the last quarter. GAMMA Investing LLC grew its holdings in shares of Constellium by 29.7% in the fourth 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 in the last quarter. Finally, Quarry LP grew its holdings in shares of Constellium by 53.7% in the third 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 in the last quarter. 92.59% of the stock is currently owned by institutional investors and hedge funds.

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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