Constellium SE $CSTM Shares Sold by Mountaineer Partners Management LLC

Key Points

• Mountaineer Partners cut its Constellium stake by 18.3% in the fourth quarter, selling 152,312 shares and leaving it with 681,464 shares worth about $12.85 million.
• Constellium reported strong quarterly results, with EPS of $1.42 versus the $0.62 consensus and revenue of $2.46 billion, up 24.4% year over year.
• The company’s board authorized a $300 million share repurchase program, while analysts remain broadly positive with a consensus Buy rating and average target price of $36.60.

Mountaineer Partners Management LLC lessened its stake in Constellium SE (NYSE:CSTM - Free Report) by 18.3% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 681,464 shares of the industrial products company's stock after selling 152,312 shares during the quarter. Constellium accounts for about 7.2% of Mountaineer Partners Management LLC's portfolio, making the stock its 6th largest holding. Mountaineer Partners Management LLC owned about 0.49% of Constellium worth $12,846,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also modified their holdings of CSTM. 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 valued at $103,204,000 after buying an additional 1,813,400 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 valued at $70,275,000 after buying an additional 1,216,516 shares during the period. Scopus Asset Management L.P. acquired a new position in shares of Constellium in the 2nd quarter valued at about $14,054,000. Vanguard Group Inc. lifted its holdings in shares of Constellium by 39.7% in the 3rd quarter. Vanguard Group Inc. now owns 3,299,064 shares of the industrial products company's stock valued at $49,090,000 after buying an additional 938,155 shares during the period. Finally, Cubist Systematic Strategies LLC acquired a new position in shares of Constellium in the 2nd quarter valued at about $9,498,000. Institutional investors and hedge funds own 92.59% of the company's stock.

Insider Buying and Selling

In related news, CFO Jack Q. Guo sold 25,201 shares of the company's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $32.62, for a total value of $822,056.62. Following the completion of the transaction, the chief financial officer owned 185,368 shares of the company's stock, valued at approximately $6,046,704.16. This represents a 11.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Philippe Hoffmann sold 50,000 shares of the company's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $31.92, for a total value of $1,596,000.00. Following the completion of the transaction, the insider directly owned 144,153 shares of the company's stock, valued at $4,601,363.76. The trade was a 25.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 195,153 shares of company stock worth $6,369,312 in the last ninety days. 1.20% of the stock is owned by corporate insiders.

Constellium Stock Performance

NYSE CSTM opened at $35.64 on Monday. The stock has a market capitalization of $4.85 billion, a price-to-earnings ratio of 11.53 and a beta of 1.55. Constellium SE has a twelve month low of $12.68 and a twelve month high of $36.99. The company has a current ratio of 1.39, a quick ratio of 0.60 and a debt-to-equity ratio of 1.71. The stock has a 50-day moving average of $32.14 and a 200 day moving average of $25.61.

Constellium (NYSE:CSTM - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.80. The company had revenue of $2.46 billion during the quarter, compared to analysts' expectations of $2.43 billion. Constellium had a return on equity of 46.22% and a net margin of 4.87%.Constellium's quarterly revenue was up 24.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.26 EPS. Sell-side analysts anticipate that Constellium SE will post 3.34 EPS for the current fiscal year.

Constellium declared that its board has authorized a share repurchase program on Thursday, March 12th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the industrial products company to reacquire up to 8.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CSTM. 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. UBS Group began coverage on Constellium in a report on Tuesday, May 5th. They issued a "buy" rating and a $38.00 price objective for the company. Wells Fargo & Company boosted their price objective on Constellium from $35.00 to $39.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Zacks Research raised Constellium from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Finally, JPMorgan Chase & Co. reissued a "neutral" rating and issued a $34.00 price objective (up from $30.00) on shares of Constellium in a report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Constellium currently has an average rating of "Buy" and a consensus target price of $36.60.

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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