Cvfg LLC Purchases New Holdings in Constellium SE $CSTM

Key Points

• Cvfg LLC disclosed a new first-quarter stake in Constellium SE, buying 273,220 shares valued at about $6.7 million and representing roughly 0.20% of the company.
• Constellium reported better-than-expected Q1 earnings of $1.42 per share on revenue of $2.46 billion, with revenue up 24.4% year over year. The company also authorized a $300 million share buyback.
• Insider selling has been notable, with director John Ormerod and SVP Marcus Becker both selling shares, while analysts currently rate the stock Moderate Buy with a consensus price target of $36.60.

Cvfg LLC purchased a new stake in Constellium SE (NYSE:CSTM - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 273,220 shares of the industrial products company's stock, valued at approximately $6,716,000. Cvfg LLC owned approximately 0.20% of Constellium as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of the company. JPMorgan Chase & Co. lifted its position 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 purchasing an additional 236,264 shares during the period. LSV Asset Management raised its stake in shares of Constellium by 33.2% in the 4th quarter. LSV Asset Management now owns 248,800 shares of the industrial products company's stock valued at $4,690,000 after buying an additional 62,000 shares in the last quarter. Danske Bank A S acquired a new position in shares of Constellium in the 4th quarter valued at $8,239,000. Algert Global LLC lifted its holdings in shares of Constellium by 71.8% during the 3rd quarter. Algert Global LLC now owns 595,676 shares of the industrial products company's stock worth $8,864,000 after acquiring an additional 249,020 shares during the period. Finally, Penn Capital Management Company LLC bought a new position in shares of Constellium during the 4th quarter worth about $6,900,000. Institutional investors and hedge funds own 92.59% of the company's stock.

Insider Activity at Constellium

In other news, Director John Ormerod sold 8,000 shares of the company's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $35.01, for a total transaction of $280,080.00. Following the transaction, the director owned 24,873 shares of the company's stock, valued at $870,803.73. This represents a 24.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Marcus Becker sold 10,391 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $34.93, for a total transaction of $362,957.63. Following the transaction, the senior vice president owned 16,784 shares in the company, valued at approximately $586,265.12. The trade was a 38.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 195,153 shares of company stock valued at $6,369,312 over the last quarter. 1.20% of the stock is currently owned by corporate insiders.

Constellium Price Performance

CSTM opened at $29.81 on Wednesday. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.39 and a quick ratio of 0.60. The stock has a market capitalization of $4.06 billion, a P/E ratio of 9.65 and a beta of 1.55. The company's 50 day simple moving average is $33.10 and its 200-day simple moving average is $27.37. Constellium SE has a one year low of $13.04 and a one year high of $36.99.

Constellium (NYSE:CSTM - Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $2.46 billion during the quarter, compared to analysts' expectations of $2.43 billion. Constellium had a net margin of 4.87% and a return on equity of 46.22%. Constellium's revenue was up 24.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.26 EPS. Sell-side analysts anticipate that Constellium SE will post 3.34 earnings per share for the current fiscal year.

Constellium declared that its board has authorized a share buyback plan on Thursday, March 12th that authorizes the company to repurchase $300.00 million in outstanding 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 often an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of analysts recently weighed in on CSTM shares. Zacks Research cut shares of Constellium from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Wells Fargo & Company increased their target price on Constellium from $35.00 to $39.00 and gave the stock an "overweight" rating in a report on Thursday, April 30th. UBS Group assumed coverage on Constellium in a research note on Tuesday, May 5th. They set a "buy" rating and a $38.00 price objective for the company. 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. Finally, Weiss Ratings downgraded shares of Constellium from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate 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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