Constellium (NYSE:CSTM) Sets New 12-Month High - Here's Why

Key Points

• Constellium shares hit a new 52-week high, trading as high as $34.35 as investor sentiment improved. The stock's move comes amid stronger recent performance and optimism around the company.
• Analysts have been raising or reiterating targets, with firms like Wells Fargo and Deutsche Bank assigning higher price targets and buy-equivalent ratings. The current consensus is a Moderate Buy with a target price of $36.60.
• Constellium posted a strong quarterly earnings beat, reporting $1.42 EPS versus $0.62 expected and revenue of $2.46 billion, up 24.4% year over year. The company also authorized a $300 million stock buyback, signaling confidence in its valuation.

Shares of Constellium SE (NYSE:CSTM - Get Free Report) hit a new 52-week high during trading on Tuesday . The company traded as high as $34.35 and last traded at $34.2390, with a volume of 1745233 shares traded. The stock had previously closed at $33.88.

Analysts Set New Price Targets

Several research firms have recently issued reports on CSTM. JPMorgan Chase & Co. restated a "neutral" rating and set a $34.00 target price (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Zacks Research lowered Constellium from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. BMO Capital Markets set a $32.00 target price on Constellium and gave the stock an "outperform" rating in a research report on Thursday, April 9th. Wells Fargo & Company boosted their target price on Constellium from $35.00 to $39.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $40.00 target price on shares of Constellium in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $36.60.

Constellium Price Performance

The company has a market capitalization of $4.66 billion, a price-to-earnings ratio of 11.08 and a beta of 1.54. The company has a 50-day moving average price of $27.82 and a 200-day moving average price of $22.56. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.60 and a current ratio of 1.39.

Constellium (NYSE:CSTM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.80. Constellium had a return on equity of 46.22% and a net margin of 4.87%.The business had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same period in the previous year, the firm earned $0.26 EPS. Constellium's quarterly revenue was up 24.4% compared to the same quarter last year. On average, equities research analysts expect that Constellium SE will post 3.34 EPS for the current fiscal year.

Constellium declared that its Board of Directors has initiated a stock buyback plan on Thursday, March 12th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the industrial products company to repurchase up to 8.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In related news, SVP Philip Ryan Jurkovic sold 48,784 shares of the business's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $32.01, for a total value of $1,561,575.84. Following the completion of the transaction, the senior vice president directly owned 172,149 shares in the company, valued at approximately $5,510,489.49. The trade was a 22.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Marcus Becker sold 15,570 shares of the business's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $25.58, for a total value of $398,280.60. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 353,928 shares of company stock worth $10,029,961 in the last three months. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Constellium

Institutional investors and hedge funds have recently modified their holdings of the business. JPMorgan Chase & Co. grew its position in shares of Constellium by 10.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 2,407,597 shares of the industrial products company's stock valued at $35,825,000 after purchasing an additional 236,264 shares during the period. Sequoia Financial Advisors LLC bought a new stake in Constellium in the 3rd quarter valued at approximately $2,876,000. Knights of Columbus Asset Advisors LLC bought a new stake in Constellium in the 3rd quarter valued at approximately $1,969,000. Mitsubishi UFJ Trust & Banking Corp lifted its stake in Constellium by 89.1% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 121,720 shares of the industrial products company's stock valued at $1,811,000 after acquiring an additional 57,337 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its stake in Constellium by 55.0% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 163,261 shares of the industrial products company's stock valued at $2,429,000 after acquiring an additional 57,909 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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