Penn Capital Management Company LLC Buys New Shares in Constellium SE $CSTM

Key Points

• Penn Capital Management opened a new position in Constellium, buying 365,194 shares worth about $6.9 million in the fourth quarter.
• Constellium posted strong quarterly results, with EPS of $1.42 beating estimates of $0.62 and revenue of $2.46 billion topping forecasts, while revenue rose 24.4% year over year.
• The company also announced a $300 million share buyback authorizing repurchases of up to 8.8% of outstanding stock, though recent insider sales have outweighed insider buying.

Penn Capital Management Company LLC purchased a new stake in shares of Constellium SE (NYSE:CSTM - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 365,194 shares of the industrial products company's stock, valued at approximately $6,900,000. Penn Capital Management Company LLC owned 0.27% of Constellium as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the business. Ethic Inc. boosted its position in Constellium by 1.6% during the fourth quarter. Ethic Inc. now owns 29,283 shares of the industrial products company's stock valued at $552,000 after buying an additional 456 shares during the period. 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 valued at $58,000 after buying an additional 707 shares during the period. 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 valued at $39,000 after buying an additional 714 shares during the period. EverSource Wealth Advisors LLC boosted its position in Constellium by 34.2% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,151 shares of the industrial products company's stock valued at $59,000 after buying an additional 803 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Constellium by 1.3% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 78,027 shares of the industrial products company's stock valued at $1,038,000 after buying an additional 1,006 shares during the period. 92.59% of the stock is currently owned by hedge funds and other institutional investors.

Constellium Stock Performance

Constellium stock opened at $35.24 on Wednesday. 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 firm has a 50-day moving average of $29.49 and a 200-day moving average of $23.86. The firm has a market cap of $4.80 billion, a P/E ratio of 11.40 and a beta of 1.54. Constellium SE has a 1-year low of $11.73 and a 1-year high of $35.29.

Constellium (NYSE:CSTM - Get Free Report) last posted its 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 analyst estimates of $2.43 billion. Constellium had a net margin of 4.87% and a return on equity of 46.22%. Constellium's revenue for the quarter was up 24.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.26 earnings per share. Sell-side analysts expect that Constellium SE will post 3.34 EPS for the current year.

Constellium announced that its Board of Directors has approved a stock buyback program on Thursday, March 12th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the industrial products company to repurchase up to 8.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Constellium

In other Constellium news, insider Stephane Corre sold 5,000 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $33.52, for a total value of $167,600.00. Following the completion of the sale, the insider directly owned 62,313 shares in the company, valued at $2,088,731.76. This trade represents a 7.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Martin Jarrett sold 4,716 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $33.46, for a total transaction 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 $514,447.50. This trade represents a 23.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders bought 5,490 shares of company stock valued at $167,089 and sold 371,035 shares valued at $10,772,766. Company insiders own 1.20% of the company's stock.

Analysts Set New Price Targets

CSTM has been the subject of several analyst reports. JPMorgan Chase & Co. restated a "neutral" rating and set a $34.00 price target (up from $30.00) on shares of Constellium in a research report on Thursday, April 30th. Zacks Research upgraded shares of Constellium from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Wells Fargo & Company upped their price target on shares of Constellium from $35.00 to $39.00 and gave the company an "overweight" rating in a research report on Thursday, April 30th. BMO Capital Markets set a $32.00 target price on shares of Constellium and gave the stock an "outperform" rating in a report on Thursday, April 9th. Finally, UBS Group started coverage on shares of Constellium in a report on Tuesday, May 5th. They set a "buy" rating and a $38.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, Constellium currently has an average rating of "Buy" and a consensus target price of $36.60.

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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