Vanguard Group Inc. Acquires 755,918 Shares of Constellium SE $CSTM

Key Points

• Vanguard Group boosted its stake in Constellium by 22.9% in the fourth quarter, adding 755,918 shares and bringing its total holding to 4.05 million shares, worth about $76.4 million.
• Constellium reported a strong quarter, with EPS of $1.42 versus $0.62 expected and revenue of $2.46 billion, both ahead of analyst estimates.
• The company’s board authorized a $300 million share buyback, while analysts remain generally positive with an average price target of $36.60 and several firms raising their targets.

Vanguard Group Inc. increased its holdings in shares of Constellium SE (NYSE:CSTM - Free Report) by 22.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,054,982 shares of the industrial products company's stock after acquiring an additional 755,918 shares during the period. Vanguard Group Inc. owned about 2.94% of Constellium worth $76,436,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Farther Finance Advisors LLC grew 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 acquiring an additional 1,467 shares during the last quarter. EverSource Wealth Advisors LLC grew 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 acquiring an additional 2,002 shares during the last quarter. GAMMA Investing LLC grew 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 acquiring an additional 707 shares during the last quarter. Quarry LP grew 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 acquiring an additional 1,960 shares during the last quarter. Finally, Gordian Capital Singapore Pte Ltd bought a new stake in Constellium during the 3rd quarter worth approximately $85,000. 92.59% of the stock is currently owned by institutional investors.

Constellium Stock Performance

CSTM stock opened at $34.54 on Thursday. The business's fifty day moving average is $28.16 and its 200-day moving average is $22.81. The company has a quick ratio of 0.60, a current ratio of 1.39 and a debt-to-equity ratio of 1.71. The company has a market cap of $4.70 billion, a P/E ratio of 11.18 and a beta of 1.54. Constellium SE has a twelve month low of $11.23 and a twelve month high of $34.61.

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

Constellium announced that its board has approved a share buyback plan on Thursday, March 12th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the industrial products company to buy up to 8.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, SVP Nicolas Brun sold 26,661 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $33.85, for a total value of $902,474.85. Following the transaction, the senior vice president owned 104,891 shares of the company's stock, valued at $3,550,560.35. This represents a 20.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Jack Q. Guo sold 41,717 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $1,079,218.79. Following the completion of the transaction, the chief financial officer directly owned 190,879 shares in the company, valued at approximately $4,938,039.73. This trade represents a 17.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 386,589 shares of company stock worth $11,133,606 over the last 90 days. 1.20% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Constellium

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: Constellium’s latest quarterly results were well above expectations, with EPS of $1.42 versus $0.62 expected and revenue of $2.46 billion topping estimates, reinforcing the company’s operational strength. MarketBeat CSTM earnings and stock page
• Positive Sentiment: Several analysts remain constructive, including JPMorgan, Wells Fargo, and UBS, with price targets up to $39 and an average target above the current trading range, which may be supporting investor sentiment. MarketBeat CSTM analyst coverage
• Positive Sentiment: The company also has a $300 million share repurchase authorization, which can signal management believes the stock remains undervalued and can provide ongoing support for the shares. MarketBeat CSTM buyback info
• Neutral Sentiment: Constellium’s share price has moved close to its 52-week high, and recent commentary notes the stock has surged substantially over the past year, suggesting some investors may be weighing momentum against valuation. Yahoo Finance article on CSTM’s one-year surge
• Negative Sentiment: Multiple insiders, including SVP Ludovic Piquier, Nicolas Brun, and Stephane Corre, sold shares this week, which can create pressure on the stock because it may be interpreted as reduced insider confidence. GuruFocus CSTM article

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Wells Fargo & Company increased their price target on Constellium from $35.00 to $39.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. BMO Capital Markets set a $32.00 price target on Constellium and gave the stock an "outperform" rating in a research report on Thursday, April 9th. 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. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $40.00 price objective on shares of Constellium in a report on Thursday, April 30th. Finally, Zacks Research raised Constellium from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Two equities research 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.com, the company currently has an average rating of "Buy" and an average price target of $36.60.

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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