UBS Group AG Reduces Holdings in Constellium SE $CSTM

Key Points

• UBS Group AG reduced its Constellium stake by 12.5% in the fourth quarter, selling 79,320 shares and leaving it with 554,900 shares valued at about $10.46 million.
• Constellium posted stronger-than-expected quarterly results, with EPS of $1.42 versus a $0.62 estimate and revenue of $2.46 billion, up 24.4% year over year.
• Analysts remain mostly positive on CSTM, with an average rating of “Buy” and an average price target of $36.60, while the stock also has a $300 million share buyback authorization in place.

UBS Group AG trimmed its holdings in shares of Constellium SE (NYSE:CSTM - Free Report) by 12.5% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 554,900 shares of the industrial products company's stock after selling 79,320 shares during the period. UBS Group AG owned about 0.40% of Constellium worth $10,460,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Farther Finance Advisors LLC increased its stake in shares of 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 purchasing an additional 1,467 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of 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 purchasing an additional 2,002 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of 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 purchasing an additional 707 shares in the last quarter. Quarry LP increased its stake in shares of 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 in the last quarter. Finally, Gordian Capital Singapore Pte Ltd purchased a new position in shares of Constellium during the 3rd quarter worth approximately $85,000. 92.59% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Constellium

In other news, SVP Ludovic Piquier sold 1,000 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $33.57, for a total transaction 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 $8,114,305.41. The trade was a 0.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Michiel Brandjes sold 10,400 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $31.25, for a total transaction of $325,000.00. Following the sale, the director directly owned 41,600 shares of the company's stock, valued at $1,300,000. This represents a 20.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 386,589 shares of company stock worth $11,133,606. 1.20% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on CSTM. BMO Capital Markets set a $32.00 price objective on shares of Constellium and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Zacks Research raised shares of Constellium from a "hold" rating to a "strong-buy" rating in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $40.00 target price on shares of Constellium in a research note on Thursday, April 30th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $34.00 target price (up from $30.00) on shares of Constellium in a research note on Thursday, April 30th. Finally, UBS Group began coverage on shares of Constellium in a research note on Tuesday, May 5th. They issued 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. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $36.60.

Constellium Stock Down 4.8%

CSTM stock opened at $31.88 on Friday. The stock has a market capitalization of $4.34 billion, a P/E ratio of 10.32 and a beta of 1.54. 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 one year low of $11.23 and a one year high of $34.94. The company has a 50 day moving average price of $28.42 and a two-hundred day moving average price of $22.99.

Constellium (NYSE:CSTM - Get Free Report) last released its earnings results on Wednesday, April 29th. The industrial products company reported $1.42 EPS 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 for the quarter was up 24.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.26 EPS. As a group, sell-side analysts expect that Constellium SE will post 3.34 EPS for the current year.

Constellium announced that its Board of Directors has initiated a stock buyback plan on Thursday, March 12th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

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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