Constellium (NYSE:CSTM) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded Constellium from “hold” to strong-buy, adding to a generally bullish analyst backdrop for the stock.
• Other firms are also constructive: Deutsche Bank, Wells Fargo, and UBS have buy-equivalent views, and the consensus target price is $36.60 versus the stock’s recent price in the mid-$34 range.
• Constellium’s latest quarterly results were well above expectations, with EPS of $1.42 versus $0.62 expected and revenue of $2.46 billion topping estimates; the company also has a $300 million share buyback authorization in place.

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

Other equities research analysts have also recently issued research reports about the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $40.00 price target on shares of Constellium in a research note on Thursday, April 30th. 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 note on Thursday, April 30th. Wells Fargo & Company upped their price target on Constellium from $35.00 to $39.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. UBS Group initiated coverage on Constellium in a research note on Tuesday, May 5th. They set a "buy" rating and a $38.00 price target for the company. Finally, BMO Capital Markets set a $32.00 price target on Constellium and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Two 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. According to data from MarketBeat.com, Constellium currently has an average rating of "Buy" and a consensus target price of $36.60.

Constellium Price Performance

Constellium stock opened at $34.54 on Tuesday. Constellium has a 12 month low of $11.23 and a 12 month high of $34.61. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.39 and a quick ratio of 0.60. The business has a 50 day simple moving average of $28.16 and a 200-day simple moving average of $22.81. The stock has a market capitalization of $4.70 billion, a PE ratio of 11.18 and a beta of 1.54.

Constellium (NYSE:CSTM - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The industrial products company reported $1.42 EPS for the quarter, topping 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 analysts' expectations of $2.43 billion. During the same quarter in the prior year, the business earned $0.26 earnings per share. The company's quarterly revenue was up 24.4% compared to the same quarter last year. Equities analysts predict that Constellium will post 3.34 earnings per share for the current year.

Constellium declared that its board has initiated a stock 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 buy up to 8.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Insider Transactions at Constellium

In other Constellium news, SVP Nicolas Brun sold 26,661 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $33.85, for a total value of $902,474.85. Following the completion of the transaction, the senior vice president owned 104,891 shares in the company, valued at approximately $3,550,560.35. This represents a 20.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Marcus Becker sold 15,570 shares of the stock in a transaction on Friday, February 20th. The stock was sold at an average price of $25.58, for a total value of $398,280.60. The SEC filing for this sale provides additional information. Insiders have sold a total of 386,589 shares of company stock valued at $11,133,606 in the last three months. Insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Farther Finance Advisors LLC increased its position 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 valued at $28,000 after buying an additional 1,467 shares in the last quarter. EverSource Wealth Advisors LLC increased its position 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 buying an additional 2,002 shares in the last quarter. Allworth Financial LP increased its position 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 buying an additional 714 shares in the last quarter. GAMMA Investing LLC increased its position 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 buying an additional 707 shares in the last quarter. Finally, Quarry LP increased its position 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 buying an additional 1,960 shares in the last quarter. Hedge funds and other institutional investors own 92.59% of the company's stock.

Trending Headlines about Constellium

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: Constellium’s latest quarterly results were well above expectations, with EPS of $1.42 versus $0.62 expected and revenue of $2.46 billion topping estimates, reinforcing the company’s operational strength. MarketBeat CSTM earnings and stock page
• Positive Sentiment: Several analysts remain constructive, including JPMorgan, Wells Fargo, and UBS, with price targets up to $39 and an average target above the current trading range, which may be supporting investor sentiment. MarketBeat CSTM analyst coverage
• Positive Sentiment: The company also has a $300 million share repurchase authorization, which can signal management believes the stock remains undervalued and can provide ongoing support for the shares. MarketBeat CSTM buyback info
• Neutral Sentiment: Constellium’s share price has moved close to its 52-week high, and recent commentary notes the stock has surged substantially over the past year, suggesting some investors may be weighing momentum against valuation. Yahoo Finance article on CSTM’s one-year surge
• Negative Sentiment: Multiple insiders, including SVP Ludovic Piquier, Nicolas Brun, and Stephane Corre, sold shares this week, which can create pressure on the stock because it may be interpreted as reduced insider confidence. GuruFocus CSTM article

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.