Convergence Investment Partners LLC Makes New Investment in Constellium SE $CSTM

Key Points

• Convergence Investment Partners opened a new position in Constellium, buying 73,600 shares worth about $1.39 million in the fourth quarter.
• Constellium reported strong quarterly earnings, posting $1.42 EPS versus the $0.62 estimate and revenue of $2.46 billion, up 24.4% year over year.
• The company also announced a $300 million share repurchase plan, while analysts currently rate the stock a consensus Buy with an average target price of $36.60.

Convergence Investment Partners LLC purchased a new position in shares of Constellium SE (NYSE:CSTM - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 73,600 shares of the industrial products company's stock, valued at approximately $1,387,000. Convergence Investment Partners LLC owned approximately 0.05% of Constellium at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of CSTM. Farther Finance Advisors LLC boosted its position in Constellium by 6,985.7% during the fourth quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company's stock worth $28,000 after purchasing an additional 1,467 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in Constellium by 578.6% during the third quarter. EverSource Wealth Advisors LLC now owns 2,348 shares of the industrial products company's stock worth $35,000 after purchasing an additional 2,002 shares in the last quarter. Allworth Financial LP boosted its position in Constellium by 52.5% during the fourth quarter. Allworth Financial LP now owns 2,074 shares of the industrial products company's stock worth $39,000 after purchasing an additional 714 shares in the last quarter. GAMMA Investing LLC boosted its position in Constellium by 29.7% during the fourth quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company's stock worth $58,000 after purchasing an additional 707 shares in the last quarter. Finally, Quarry LP boosted its position in Constellium by 53.7% during the third quarter. Quarry LP now owns 5,610 shares of the industrial products company's stock worth $83,000 after purchasing an additional 1,960 shares in the last quarter. Hedge funds and other institutional investors own 92.59% of the company's stock.

Insider Transactions at Constellium

In related news, CFO Jack Q. Guo sold 25,201 shares of the stock in a transaction that occurred on 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 sale, the chief financial officer owned 185,368 shares of the company's stock, valued at approximately $6,046,704.16. This trade represents a 11.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Ludovic Piquier sold 1,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $33.57, for a total value of $33,570.00. Following the completion of the sale, the senior vice president directly owned 241,713 shares of the company's stock, valued at approximately $8,114,305.41. This represents a 0.41% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 386,589 shares of company stock valued at $11,133,606. 1.20% of the stock is currently owned by company insiders.

Constellium Stock Performance

NYSE CSTM opened at $31.88 on Friday. The company has a market cap of $4.34 billion, a PE ratio of 10.32 and a beta of 1.54. The stock's 50 day simple moving average is $28.42 and its 200-day simple moving average is $22.99. Constellium SE has a 1-year low of $11.23 and a 1-year high of $34.94. 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 (NYSE:CSTM - Get Free Report) last released its earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share for the quarter, beating 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 business had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter last year, the business posted $0.26 earnings per share. The business's quarterly revenue was up 24.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Constellium SE will post 3.34 EPS for the current fiscal year.

Constellium announced that its board has approved a stock repurchase plan on Thursday, March 12th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the industrial products company to reacquire up to 8.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on CSTM shares. BMO Capital Markets set a $32.00 target price on Constellium and gave the company an "outperform" rating in a research report on Thursday, April 9th. UBS Group assumed coverage on Constellium in a research report on Tuesday, May 5th. They issued a "buy" rating and a $38.00 target price on the stock. Zacks Research upgraded Constellium from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Wells Fargo & Company raised their target price on Constellium from $35.00 to $39.00 and gave the company an "overweight" rating in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. restated a "neutral" rating and issued a $34.00 target price (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average 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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