BW Gestao de Investimentos Ltda. Takes Position in Constellium SE $CSTM

Key Points

• BW Gestao de Investimentos Ltda. initiated a new position in Constellium, buying 546,270 shares worth about $10.3 million and owning roughly 0.40% of the company.
• Constellium has seen strong analyst interest, with a consensus Buy rating and an average price target of $36.60; several firms recently reiterated or raised their ratings and targets.
• The company reported solid quarterly results, with EPS of $1.42 topping estimates and revenue rising 24.4% year over year, while its board also authorized a $300 million share repurchase program.

BW Gestao de Investimentos Ltda. purchased a new stake in shares of Constellium SE (NYSE:CSTM - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 546,270 shares of the industrial products company's stock, valued at approximately $10,297,000. BW Gestao de Investimentos Ltda. owned approximately 0.40% of Constellium as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Millennium Management LLC raised its stake in shares of Constellium by 35.4% during the third quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company's stock valued at $103,204,000 after acquiring an additional 1,813,400 shares in the last quarter. Vanguard Group Inc. raised its stake in Constellium by 22.9% in the fourth 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 in the last quarter. JPMorgan Chase & Co. raised its stake in Constellium by 10.9% in the third quarter. JPMorgan Chase & Co. now owns 2,407,597 shares of the industrial products company's stock worth $35,825,000 after buying an additional 236,264 shares in the last quarter. Soapstone Management L.P. raised its stake in Constellium by 12.6% in the second quarter. Soapstone Management L.P. now owns 1,776,559 shares of the industrial products company's stock worth $23,628,000 after buying an additional 199,360 shares in the last quarter. Finally, Brightline Capital Management LLC raised its stake in Constellium by 62.5% in the third quarter. Brightline Capital Management LLC now owns 1,625,000 shares of the industrial products company's stock worth $24,180,000 after buying an additional 625,000 shares in the last quarter. Institutional investors own 92.59% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $34.00 price objective (up from $30.00) on shares of Constellium in a research note on Thursday, April 30th. Zacks Research raised shares of Constellium from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $40.00 price objective on shares of Constellium in a research note on Thursday, April 30th. UBS Group assumed coverage on shares of Constellium in a research note on Tuesday, May 5th. They issued a "buy" rating and a $38.00 price objective for the company. Finally, 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. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Constellium has a consensus rating of "Buy" and an average price target of $36.60.

Insider Activity

In related news, SVP Nicolas Brun sold 26,661 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $33.85, for a total transaction of $902,474.85. Following the completion of the transaction, the senior vice president directly owned 104,891 shares in the company, valued at $3,550,560.35. The trade was a 20.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Bradley Lee Soultz bought 2,500 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were acquired at an average price of $33.84 per share, with a total value of $84,600.00. Following the completion of the transaction, the director directly owned 2,500 shares of the company's stock, valued at $84,600. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders sold 368,426 shares of company stock valued at $10,803,954. 1.20% of the stock is owned by corporate insiders.

Constellium Price Performance

Shares of CSTM opened at $34.65 on Tuesday. The firm has a market capitalization of $4.72 billion, a PE ratio of 11.21 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 SE has a 1-year low of $12.11 and a 1-year high of $35.29. The company's fifty day moving average price is $30.25 and its 200-day moving average price is $24.38.

Constellium (NYSE:CSTM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.80. The firm had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.43 billion. Constellium had a net margin of 4.87% and a return on equity of 46.22%. The business's quarterly revenue was up 24.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.26 earnings per share. On average, equities research analysts predict that Constellium SE will post 3.34 EPS for the current year.

Constellium declared that its Board of Directors has authorized a share repurchase program on Thursday, March 12th that permits the company to repurchase $300.00 million in 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 typically an indication that the company's board believes its stock is undervalued.

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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