Encompass Capital Advisors LLC Sells 2,180,637 Shares of Constellium SE $CSTM

Key Points

• Encompass Capital Advisors cut its Constellium stake by 46.8%, selling 2.18 million shares in the first quarter and retaining 2.48 million shares valued at approximately $60.9 million.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $35.60, although ratings range from “Buy” to “Hold” and individual targets span $32 to $40.
• 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.

Encompass Capital Advisors LLC trimmed its position in Constellium SE (NYSE:CSTM - Free Report) by 46.8% during the first quarter, according to its most recent 13F filing with the SEC. The fund owned 2,477,278 shares of the industrial products company's stock after selling 2,180,637 shares during the period. Constellium comprises approximately 1.8% of Encompass Capital Advisors LLC's holdings, making the stock its 10th largest holding. Encompass Capital Advisors LLC owned about 1.82% of Constellium worth $60,891,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in CSTM. Farther Finance Advisors LLC raised its position in shares of 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 acquiring an additional 1,467 shares during the last quarter. Allworth Financial LP boosted its holdings in Constellium by 52.5% in the fourth quarter. Allworth Financial LP now owns 2,074 shares of the industrial products company's stock valued at $39,000 after acquiring an additional 714 shares during the last quarter. GAMMA Investing LLC increased its position in Constellium by 29.7% in 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 during the period. EverSource Wealth Advisors LLC increased its position in Constellium by 34.2% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,151 shares of the industrial products company's stock worth $59,000 after purchasing an additional 803 shares during the period. Finally, Quarry LP raised its holdings in Constellium by 53.7% during the 3rd 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 during the last quarter. 92.59% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Constellium news, SVP Martin Jarrett sold 4,716 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $33.46, for a total value of $157,797.36. Following the completion of the sale, the senior vice president owned 15,375 shares of the company's stock, valued at approximately $514,447.50. This represents a 23.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Bradley Lee Soultz bought 2,500 shares of the business's stock in a transaction on Thursday, May 14th. The stock was purchased at an average price of $33.84 per share, for a total transaction of $84,600.00. Following the completion of the acquisition, the director owned 2,500 shares of the company's stock, valued at approximately $84,600. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 195,153 shares of company stock worth $6,369,312 over the last ninety days. Company insiders own 1.20% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have issued reports on CSTM shares. JPMorgan Chase & Co. restated a "neutral" rating and set a $34.00 target price (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. UBS Group lowered their price target on shares of Constellium from $38.00 to $35.00 and set a "buy" rating for the company in a research report on Wednesday, July 8th. Zacks Research downgraded shares of Constellium from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. BMO Capital Markets set a $32.00 price objective on shares of Constellium and gave the company an "outperform" rating in a report on Thursday, April 9th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $40.00 price objective on shares of Constellium in a research note on Thursday, April 30th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $35.60.

Constellium Trading Up 1.8%

NYSE CSTM opened at $29.57 on Tuesday. Constellium SE has a 12 month low of $13.04 and a 12 month high of $36.99. The stock has a 50-day simple moving average of $32.05 and a 200 day simple moving average of $28.36. 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 company has a market capitalization of $4.03 billion, a PE ratio of 9.57 and a beta of 1.55.

Constellium (NYSE:CSTM - Get Free Report) last issued its earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.80. The firm had revenue of $2.46 billion for 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%.The company's revenue was up 24.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.26 earnings per share. Research analysts forecast that Constellium SE will post 3.41 EPS for the current year.

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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