Constellium SE (NYSE:CSTM) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is moderately positive: Constellium has a consensus rating of “Moderate Buy” from seven analysts, with an average 1-year price target of $36.60. Recent firm-specific calls included buy and overweight ratings from Deutsche Bank, Wells Fargo, BMO Capital Markets, and UBS.
• Recent earnings came in well above expectations: The company reported quarterly EPS of $1.42, easily beating the $0.62 estimate, while revenue of $2.46 billion also slightly topped forecasts. Revenue was up 24.4% year over year.
• Insiders sold shares and the company is buying back stock: Senior executives sold shares in recent transactions, and insiders sold 195,153 shares over the last 90 days. At the same time, Constellium authorized a $300 million share repurchase program, signaling management may view the stock as undervalued.

Shares of Constellium SE (NYSE:CSTM - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seven research firms that are presently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $36.60.

A number of research firms have commented on CSTM. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $40.00 price objective on shares of Constellium in a research note on Thursday, April 30th. Wells Fargo & Company boosted their price target on shares of Constellium from $35.00 to $39.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. BMO Capital Markets set a $32.00 price objective on shares of Constellium and gave the stock an "outperform" rating in a research note on Thursday, April 9th. UBS Group began coverage on shares of Constellium in a research report on Tuesday, May 5th. They set a "buy" rating and a $38.00 price objective on the stock. Finally, Weiss Ratings downgraded shares of Constellium from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, July 1st.

Insider Transactions at Constellium

In other Constellium news, SVP Martin Jarrett sold 4,716 shares of the firm's stock in a transaction dated 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 directly owned 15,375 shares in the company, valued at approximately $514,447.50. This trade represents a 23.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Ludovic Piquier sold 1,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $33.57, for a total value of $33,570.00. Following the completion of the transaction, the senior vice president owned 241,713 shares in the company, valued at $8,114,305.41. This represents a 0.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 195,153 shares of company stock worth $6,369,312. 1.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Constellium

A number of institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC raised its holdings in Constellium by 6,985.7% in the 4th quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company's stock worth $28,000 after acquiring an additional 1,467 shares during the period. Allworth Financial LP grew 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 purchasing an additional 714 shares during the last quarter. GAMMA Investing LLC grew 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 purchasing an additional 707 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Constellium by 34.2% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,151 shares of the industrial products company's stock worth $59,000 after purchasing an additional 803 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 purchasing an additional 1,960 shares during the period. Institutional investors and hedge funds own 92.59% of the company's stock.

Constellium Price Performance

Shares of CSTM stock traded down $0.28 during midday trading on Tuesday, reaching $29.91. 419,545 shares of the company were exchanged, compared to its average volume of 2,181,515. The company's 50 day moving average price is $33.13 and its two-hundred day moving average price is $27.29. The company has a market cap of $4.07 billion, a P/E ratio of 9.68 and a beta of 1.55. Constellium has a 12 month low of $13.04 and a 12 month high of $36.99. 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 posted 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 net margin of 4.87% and a return on equity of 46.22%. The business had revenue of $2.46 billion during the quarter, compared to analysts' expectations of $2.43 billion. During the same period last year, the firm posted $0.26 earnings per share. The business's revenue was up 24.4% on a year-over-year basis. On average, sell-side analysts expect that Constellium will post 3.34 earnings per share for the current year.

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

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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