Kailix Advisors LLC Lowers Holdings in Constellium SE $CSTM

Key Points

• Kailix Advisors LLC cut its Constellium stake by 11.3% in the fourth quarter, selling 125,112 shares and leaving it with 978,057 shares valued at about $18.4 million. Constellium remains Kailix’s largest holding, making up 20.6% of its portfolio.
• Wall Street sentiment is broadly positive, with UBS initiating coverage at a Buy and a $38 target, while Deutsche Bank also rates the stock Buy with a $40 target. Overall, analysts have a consensus rating of “Moderate Buy” and a consensus price target of $36.60.
• Constellium reported strong quarterly results, posting EPS of $1.42 versus expectations of $0.62 and revenue of $2.46 billion, up 24.4% year over year. The company also authorized a $300 million share repurchase plan, signaling management confidence in the stock.

Kailix Advisors LLC decreased its position in shares of Constellium SE (NYSE:CSTM - Free Report) by 11.3% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 978,057 shares of the industrial products company's stock after selling 125,112 shares during the period. Constellium makes up 20.6% of Kailix Advisors LLC's holdings, making the stock its biggest position. Kailix Advisors LLC owned 0.71% of Constellium worth $18,436,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Farther Finance Advisors LLC increased its position in Constellium by 6,985.7% during the 4th quarter. Farther Finance Advisors LLC now owns 1,488 shares of the industrial products company's stock worth $28,000 after buying an additional 1,467 shares during the period. EverSource Wealth Advisors LLC increased its position in Constellium by 578.6% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 2,348 shares of the industrial products company's stock worth $35,000 after buying an additional 2,002 shares during the period. GAMMA Investing LLC increased its position in Constellium by 29.7% during the 4th quarter. GAMMA Investing LLC now owns 3,089 shares of the industrial products company's stock worth $58,000 after buying an additional 707 shares during the period. Quarry LP increased its position 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 buying an additional 1,960 shares during the period. Finally, Gordian Capital Singapore Pte Ltd bought a new position in Constellium during the 3rd quarter worth $85,000. Institutional investors own 92.59% of the company's stock.

Constellium News Roundup

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: UBS initiated coverage of Constellium SE with a Buy rating and a $38 target, citing potential upside if used-beverage-can spreads stabilize. UBS initiates coverage of Constellium SE with Buy recommendation
• Positive Sentiment: Zacks upgraded Constellium to a Strong Buy and highlighted it as a momentum/value name, which may support additional investor demand. Zacks upgrade to Strong Buy
• Neutral Sentiment: Additional commentary continues to frame CSTM as a momentum and value stock, reinforcing positive sentiment but not adding a major new catalyst. Constellium relative performance commentary
• Neutral Sentiment: Analyst and screen-based “all-time high but still undervalued” coverage may help maintain interest, though it is more narrative than a direct catalyst. Insider Monkey article on Constellium
• Negative Sentiment: CFO Jack Q. Guo sold 25,201 shares at $32.62, reducing his stake by about 12%, which can weigh on sentiment. SEC filing for CFO sale
• Negative Sentiment: Director Michiel Brandjes sold 10,400 shares at $31.25, a 20% reduction in ownership that could be read as a cautionary signal. SEC filing for director sale

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. UBS Group assumed coverage on Constellium in a research report on Tuesday, May 5th. They set a "buy" rating and a $38.00 price objective on the stock. BMO Capital Markets set a $32.00 price objective on Constellium and gave the stock an "outperform" rating in a research report on Thursday, April 9th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $34.00 price objective (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Zacks Research cut Constellium from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $40.00 price target on shares of Constellium in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $36.60.

Constellium Stock Down 0.1%

Shares of NYSE CSTM opened at $33.86 on Monday. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.60 and a current ratio of 1.39. Constellium SE has a 52 week low of $11.15 and a 52 week high of $33.89. The stock has a market capitalization of $4.61 billion, a P/E ratio of 10.96 and a beta of 1.54. The stock's fifty day moving average is $27.50 and its 200 day moving average is $22.31.

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

Constellium announced that its board has authorized a stock repurchase plan on Thursday, March 12th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, SVP Marcus Becker sold 15,570 shares of the firm's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $25.58, for a total value of $398,280.60. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Nicolas Brun sold 17,701 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $24.67, for a total value of $436,683.67. Following the completion of the sale, the senior vice president directly owned 103,466 shares in the company, valued at $2,552,506.22. This trade represents a 14.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 353,928 shares of company stock valued at $10,029,961 in the last ninety days. Insiders own 1.20% of the company's stock.

Constellium 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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