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

Key Points

• Constellium SE has a consensus analyst rating of "Buy" from seven covering firms, with an average 12-month price target of $36.60.
• The company’s latest earnings beat expectations, reporting $1.42 EPS versus the $0.62 consensus, while revenue rose 24.4% year over year to $2.46 billion.
• Constellium’s board approved a $300 million share repurchase program, allowing the company to buy back up to 8.8% of outstanding shares, signaling confidence in the stock’s valuation.

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

Several equities research analysts recently weighed in on the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $40.00 target price on shares of Constellium in a report on Thursday, April 30th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $34.00 target price (up from $30.00) on shares of Constellium in a report on Thursday, April 30th. BMO Capital Markets set a $32.00 target price on shares of Constellium and gave the stock an "outperform" rating in a report on Thursday, April 9th. UBS Group began coverage on shares of Constellium in a report on Tuesday, May 5th. They issued a "buy" rating and a $38.00 target price on the stock. Finally, Zacks Research upgraded shares of Constellium from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th.

Constellium Trading Down 0.1%

Shares of NYSE:CSTM opened at $31.88 on Monday. The stock has a market capitalization of $4.34 billion, a PE ratio of 10.32 and a beta of 1.54. Constellium has a 1 year low of $11.23 and a 1 year high of $34.94. The firm has a fifty day moving average price of $28.42 and a 200 day moving average price of $23.04. The company has a current ratio of 1.39, a quick ratio of 0.60 and a debt-to-equity ratio of 1.71.

Constellium (NYSE:CSTM - Get Free Report) last posted its earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share 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 firm had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same period in the previous year, the company earned $0.26 EPS. The company's revenue for the quarter was up 24.4% on a year-over-year basis. Analysts expect that Constellium will post 3.34 EPS for the current fiscal year.

Constellium declared that its Board of Directors has approved a stock repurchase program on Thursday, March 12th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the industrial products company to buy up to 8.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at Constellium

In other Constellium news, SVP Marcus Becker sold 15,570 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $25.58, for a total value of $398,280.60. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Philippe Hoffmann sold 80,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $26.45, for a total value of $2,116,000.00. Following the completion of the sale, the insider directly owned 55,425 shares in the company, valued at $1,465,991.25. This trade represents a 59.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 386,589 shares of company stock worth $11,133,606. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Constellium

A number of hedge funds have recently bought and sold shares of the stock. Ethic Inc. boosted its holdings in Constellium by 1.6% in the 4th quarter. Ethic Inc. now owns 29,283 shares of the industrial products company's stock valued at $552,000 after purchasing an additional 456 shares during the period. Mackenzie Financial Corp raised its holdings in Constellium by 0.4% in the 4th quarter. Mackenzie Financial Corp now owns 132,642 shares of the industrial products company's stock valued at $2,511,000 after acquiring an additional 512 shares in the last quarter. Summit Global Investments raised its holdings in Constellium by 1.7% in the 1st quarter. Summit Global Investments now owns 33,799 shares of the industrial products company's stock valued at $831,000 after acquiring an additional 554 shares in the last quarter. Moran Wealth Management LLC raised its holdings in Constellium by 6.7% in the 1st quarter. Moran Wealth Management LLC now owns 11,025 shares of the industrial products company's stock valued at $271,000 after acquiring an additional 692 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in Constellium by 29.7% in the 4th quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company's stock valued at $58,000 after acquiring an additional 707 shares in the last quarter. 92.59% of the stock is owned by institutional investors.

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.

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