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

Key Points

• "Moderate Buy" consensus from six brokerages (four buy, two hold) with an average 1-year price target of $31.50.
• Constellium beat Q results (EPS $0.80 vs. $0.36 est.; revenue $2.20B vs. $2.05B, +27.9% y/y) and its board authorized a $300 million buyback to repurchase up to 8.8% of shares.
• Insiders sold 214,543 shares worth about $5.57M last quarter (including large sales by Philippe Hoffmann and Philip Jurkovic), while institutional ownership is very high at ~92.6%.

Constellium SE (NYSE:CSTM - Get Free Report) has been given an average rating of "Moderate Buy" by the six brokerages that are currently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $31.50.

CSTM has been the subject of a number of recent analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Constellium in a report on Monday, December 29th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $29.00 price objective on shares of Constellium in a report on Thursday, April 9th. JPMorgan Chase & Co. boosted their price objective on Constellium from $29.00 to $30.00 and gave the company an "overweight" rating in a report on Thursday, April 16th. Zacks Research cut Constellium from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Finally, BMO Capital Markets set a $32.00 price objective on Constellium and gave the company an "outperform" rating in a report on Thursday, April 9th.

Insider Activity at Constellium

In related news, insider Philippe Hoffmann sold 80,000 shares of the business's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $26.45, for a total transaction of $2,116,000.00. Following the completion of the transaction, the insider owned 55,425 shares in the company, valued at $1,465,991.25. The trade was a 59.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Philip Ryan Jurkovic sold 29,900 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $773,513.00. Following the transaction, the senior vice president owned 210,723 shares of the company's stock, valued at approximately $5,451,404.01. The trade was a 12.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 214,543 shares of company stock worth $5,565,129 over the last quarter. 1.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Constellium

Several hedge funds have recently made changes to their positions in the company. Millennium Management LLC lifted its holdings in shares of Constellium by 35.4% in the 3rd quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company's stock worth $103,204,000 after buying an additional 1,813,400 shares during the period. Encompass Capital Advisors LLC lifted its holdings in shares of Constellium by 9.2% in the 4th quarter. Encompass Capital Advisors LLC now owns 4,657,915 shares of the industrial products company's stock worth $87,802,000 after buying an additional 393,640 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Constellium by 22.9% in the 4th quarter. Vanguard Group Inc. now owns 4,054,982 shares of the industrial products company's stock worth $76,436,000 after buying an additional 755,918 shares during the period. Morgan Stanley lifted its holdings in shares of Constellium by 48.4% in the 4th quarter. Morgan Stanley now owns 3,728,118 shares of the industrial products company's stock worth $70,275,000 after buying an additional 1,216,516 shares during the period. Finally, State Street Corp lifted its holdings in shares of Constellium by 3.6% in the 4th quarter. State Street Corp now owns 2,660,518 shares of the industrial products company's stock worth $50,151,000 after buying an additional 92,955 shares during the period. 92.59% of the stock is currently owned by hedge funds and other institutional investors.

Constellium Stock Performance

NYSE CSTM opened at $30.84 on Thursday. The company has a market cap of $4.20 billion, a P/E ratio of 15.98 and a beta of 1.43. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.51 and a current ratio of 1.29. The business's 50 day moving average price is $26.19 and its 200-day moving average price is $21.21. Constellium has a fifty-two week low of $8.73 and a fifty-two week high of $31.20.

Constellium (NYSE:CSTM - Get Free Report) last released its earnings results on Saturday, February 14th. The industrial products company reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.44. The firm had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.05 billion. Constellium had a return on equity of 32.14% and a net margin of 3.23%.The company's revenue for the quarter was up 27.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.34) EPS. Sell-side analysts predict that Constellium will post 2.13 earnings per share for the current year.

Constellium declared that its board has initiated a share buyback plan on Thursday, March 12th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the industrial products company to buy up to 8.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership 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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