Constellium SE (NYSE:CSTM) Receives Average Rating of "Buy" from Analysts

Key Points

• Constellium SE has a consensus analyst rating of “Buy” from seven analysts, with an average 1-year price target of $36.60. Recent firm-specific calls included higher targets from Wells Fargo, UBS, JPMorgan, Deutsche Bank, and a hold from Weiss Ratings.
• The company reported strong quarterly results, posting EPS of $1.42 versus an expected $0.62 and revenue of $2.46 billion, topping estimates. Revenue rose 24.4% year over year.
• Constellium’s shares were up 6.3% to $34.70, near their 52-week high of $36.99, after the company also announced a $300 million share repurchase program. Insiders sold shares recently, while institutional investors own the vast majority of the stock.

Shares of Constellium SE (NYSE:CSTM - Get Free Report) have been assigned a consensus rating of "Buy" from the seven analysts that are covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a hold recommendation, three have given a buy recommendation and two have given a strong buy recommendation to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $36.60.

A number of equities analysts have commented on CSTM shares. Wells Fargo & Company boosted their price objective 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 shares of Constellium in a research report on Tuesday, May 5th. They set a "buy" rating and a $38.00 price target on the stock. JPMorgan Chase & Co. reiterated 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. Weiss Ratings reiterated a "hold (c+)" rating on shares of Constellium in a research report on Tuesday, May 26th. Finally, 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.

Insider Buying and Selling at Constellium

In other Constellium news, insider Philippe Hoffmann sold 50,000 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $31.92, for a total transaction of $1,596,000.00. Following the transaction, the insider directly owned 144,153 shares in the company, valued at approximately $4,601,363.76. This represents a 25.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Philip Ryan Jurkovic sold 48,784 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $32.01, for a total transaction of $1,561,575.84. Following the transaction, the senior vice president owned 172,149 shares in the company, valued at approximately $5,510,489.49. The trade was a 22.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 195,153 shares of company stock valued at $6,369,312 over the last ninety days. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Constellium

Several large investors have recently bought and sold shares of CSTM. JPMorgan Chase & Co. lifted its stake 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. GW&K Investment Management LLC acquired a new position in Constellium in the third quarter valued at about $2,381,000. Algert Global LLC lifted its stake in Constellium by 71.8% in the third quarter. Algert Global LLC now owns 595,676 shares of the industrial products company's stock valued at $8,864,000 after buying an additional 249,020 shares during the period. Danske Bank A S acquired a new position in Constellium in the fourth quarter valued at about $8,239,000. Finally, Cannell & Spears LLC lifted its stake in Constellium by 5.2% in the third quarter. Cannell & Spears LLC now owns 1,557,835 shares of the industrial products company's stock valued at $23,181,000 after buying an additional 77,703 shares during the period. 92.59% of the stock is currently owned by institutional investors and hedge funds.

Constellium Stock Up 6.3%

Shares of CSTM opened at $34.70 on Friday. The company has a market capitalization of $4.72 billion, a P/E ratio of 11.23 and a beta of 1.55. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.39 and a quick ratio of 0.60. Constellium has a one year low of $12.68 and a one year high of $36.99. The business's 50 day simple moving average is $31.98 and its 200-day simple moving average is $25.47.

Constellium (NYSE:CSTM - Get Free Report) last announced its 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. The business had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.43 billion. Constellium had a return on equity of 46.22% and a net margin of 4.87%.Constellium's revenue was up 24.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.26 EPS. As a group, sell-side analysts predict that Constellium will post 3.34 EPS for the current fiscal year.

Constellium declared that its board has initiated a stock repurchase program on Thursday, March 12th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the industrial products company to buy up to 8.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board 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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