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

Key Points

• Constellium shares hit a new 52-week high on Tuesday, trading as high as $35.03 after closing at $33.24 the day before. The stock was up about 6% in the session.
• Recent analyst sentiment has been bullish, with multiple firms raising targets and issuing buy/overweight ratings. The current consensus rating is Buy, with an average price target of $36.60.
• The company posted strong quarterly results, reporting EPS of $1.42 versus $0.62 expected and revenue of $2.46 billion, up 24.4% year over year. Constellium also authorized a $300 million share buyback, while several executives sold shares recently.

Constellium SE (NYSE:CSTM - Get Free Report) shares hit a new 52-week high on Tuesday . The company traded as high as $35.03 and last traded at $34.99, with a volume of 830430 shares trading hands. The stock had previously closed at $33.24.

Analyst Upgrades and Downgrades

CSTM has been the topic of several research reports. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $40.00 price objective on shares of Constellium in a research report on Thursday, April 30th. Wells Fargo & Company upped their target price on shares of Constellium from $35.00 to $39.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. BMO Capital Markets set a $32.00 target price on Constellium and gave the company an "outperform" rating in a research note on Thursday, April 9th. JPMorgan Chase & Co. restated a "neutral" rating and set a $34.00 price target (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Finally, UBS Group began coverage on Constellium in a report on Tuesday, May 5th. They issued a "buy" rating and a $38.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $36.60.

Constellium Trading Up 6.0%

The stock has a market capitalization of $4.80 billion, a P/E ratio of 11.40 and a beta of 1.54. The company has a current ratio of 1.39, a quick ratio of 0.60 and a debt-to-equity ratio of 1.71. The stock's fifty day moving average price is $29.27 and its two-hundred day moving average price is $23.72.

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

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

Insider Transactions at Constellium

In other news, SVP Nicolas Brun sold 26,661 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $33.85, for a total value of $902,474.85. Following the completion of the sale, the senior vice president directly owned 104,891 shares in the company, valued at approximately $3,550,560.35. The trade was a 20.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Martin Jarrett sold 4,716 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $33.46, for a total transaction of $157,797.36. Following the completion of the sale, the senior vice president owned 15,375 shares of the company's stock, valued at approximately $514,447.50. The trade was a 23.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders purchased 5,490 shares of company stock worth $167,089 and sold 374,235 shares worth $10,855,038. Insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Farther Finance Advisors LLC increased its stake in shares of Constellium by 6,985.7% in the fourth quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company's stock worth $28,000 after buying an additional 1,467 shares during the period. Allworth Financial LP increased its stake 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 worth $39,000 after buying an additional 714 shares during the period. EverSource Wealth Advisors LLC increased its stake 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 worth $35,000 after buying an additional 2,002 shares during the period. GAMMA Investing LLC increased its stake 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 worth $58,000 after buying an additional 707 shares during the period. Finally, Quarry LP increased its stake 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 worth $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.

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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