Constellium (NYSE:CSTM) Stock Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Constellium’s stock moved above its 200-day moving average, trading as high as $33.54 and last near $33.26, well above the $23.72 long-term average.
• Analysts remain mostly positive, with a consensus Buy rating and average price target of $36.60 after several firms raised targets or initiated coverage.
• The company posted strong quarterly results, beating EPS and revenue estimates, while also authorizing a $300 million share buyback; however, recent insider sales and high leverage may warrant attention.

Constellium SE (NYSE:CSTM - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $23.72 and traded as high as $33.54. Constellium shares last traded at $33.2590, with a volume of 3,137,738 shares trading hands.

Analyst Ratings Changes

CSTM has been the topic of a number of recent research reports. Wells Fargo & Company boosted their target price on Constellium from $35.00 to $39.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. UBS Group began coverage on Constellium in a research note on Tuesday, May 5th. They issued a "buy" rating and a $38.00 price target on the stock. Zacks Research upgraded Constellium from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $40.00 target price on shares of Constellium in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. restated a "neutral" rating and issued a $34.00 price objective (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $36.60.

Constellium Price Performance

The stock has a market capitalization of $4.53 billion, a price-to-earnings ratio of 10.76 and a beta of 1.54. The company has a 50 day moving average of $29.27 and a 200 day moving average of $23.72. The company has a quick ratio of 0.60, a current ratio of 1.39 and a debt-to-equity ratio of 1.71.

Constellium (NYSE:CSTM - Get Free Report) last released its earnings results on Wednesday, April 29th. The industrial products company reported $1.42 EPS for the quarter, beating the consensus estimate 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 return on equity of 46.22% and a net margin of 4.87%.The business's quarterly revenue was up 24.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.26 earnings per share. As a group, equities research analysts forecast that Constellium SE will post 3.34 EPS for the current fiscal year.

Constellium declared that its board has approved 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 purchase up to 8.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its stock is undervalued.

Insider Transactions at Constellium

In related news, Director Michiel Brandjes sold 10,400 shares of the company's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $31.25, for a total value of $325,000.00. Following the completion of the transaction, the director directly owned 41,600 shares in the company, valued at approximately $1,300,000. This represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Nicolas Brun sold 26,661 shares of the company's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $33.85, for a total value of $902,474.85. Following the sale, the senior vice president owned 104,891 shares of the company's stock, valued at $3,550,560.35. This represents a 20.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders acquired 5,490 shares of company stock valued at $167,089 and sold 374,235 shares valued at $10,855,038. 1.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Constellium

Several institutional investors and hedge funds have recently modified their holdings of CSTM. Farther Finance Advisors LLC boosted its holdings in 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 valued at $28,000 after purchasing an additional 1,467 shares during the last quarter. Allworth Financial LP lifted its holdings in Constellium by 52.5% during the 4th 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 last quarter. EverSource Wealth Advisors LLC lifted its holdings in Constellium by 578.6% during the 3rd 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 last quarter. GAMMA Investing LLC lifted its holdings in Constellium by 29.7% during the 4th 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 last quarter. Finally, Quarry LP lifted its holdings in Constellium by 53.7% during the 3rd 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 last quarter. Hedge funds and other institutional investors own 92.59% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.