Constellium (NYSE:CSTM) Shares Break Below 200-Day Moving Average - Here's What Happened

Key Points

• Constellium shares fell below their 200-day moving average of $29.44, trading as low as $24.23 and closing around $24.61.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $35.60, despite several recent target reductions.
• The company exceeded quarterly expectations, reporting $1.04 in adjusted EPS versus an $0.86 estimate and 30.7% year-over-year revenue growth; institutional investors own 92.59% of the stock.

Constellium SE (NYSE:CSTM - Get Free Report) shares crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $29.44 and traded as low as $24.23. Constellium shares last traded at $24.61, with a volume of 2,163,109 shares.

Analysts Set New Price Targets

A number of research analysts recently weighed in on CSTM shares. Deutsche Bank Aktiengesellschaft set a $39.00 price objective on shares of Constellium in a research note on Thursday, July 30th. Wells Fargo & Company dropped their target price on Constellium from $39.00 to $38.00 and set an "overweight" rating on the stock in a research report on Friday, September 18th. UBS Group cut their price target on Constellium from $38.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Zacks Research upgraded Constellium from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 7th. Finally, Weiss Ratings lowered Constellium from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $35.60.

Constellium Trading Down 1.1%

The firm's 50 day moving average is $27.44 and its 200 day moving average is $29.44. The company has a market cap of $3.34 billion, a PE ratio of 6.34 and a beta of 1.55. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.43 and a quick ratio of 0.61.

Constellium (NYSE:CSTM - Get Free Report) last posted its earnings results on Wednesday, July 29th. The industrial products company reported $1.04 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.18. Constellium had a net margin of 5.69% and a return on equity of 51.66%. The business had revenue of $2.75 billion for the quarter, compared to analyst estimates of $2.73 billion. During the same quarter in the prior year, the firm posted $0.25 EPS. Constellium's revenue was up 30.7% on a year-over-year basis. On average, equities analysts anticipate that Constellium SE will post 3.7 earnings per share for the current year.

Insider Buying and Selling at Constellium

In other news, Director Jean-Christophe Deslarzes purchased 1,490 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were purchased at an average price of $27.24 per share, with a total value of $40,587.60. Following the completion of the acquisition, the director owned 43,515 shares in the company, valued at $1,185,348.60. This trade represents a 3.55% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Constellium

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Encompass Capital Advisors LLC raised its holdings in shares of Constellium by 9.2% in the 4th quarter. Encompass Capital Advisors LLC now owns 4,657,915 shares of the industrial products company's stock valued at $87,802,000 after acquiring an additional 393,640 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Constellium by 620.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,228,027 shares of the industrial products company's stock worth $79,345,000 after purchasing an additional 2,780,260 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund increased its position in shares of Constellium by 894.4% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,056,336 shares of the industrial products company's stock worth $50,545,000 after purchasing an additional 1,849,554 shares during the last quarter. SG Americas Securities LLC increased its position in shares of Constellium by 53.6% in the first quarter. SG Americas Securities LLC now owns 1,497,460 shares of the industrial products company's stock worth $36,808,000 after purchasing an additional 522,725 shares during the last quarter. Finally, Beaconlight Capital LLC increased its position in shares of Constellium by 5.2% in the fourth quarter. Beaconlight Capital LLC now owns 1,339,934 shares of the industrial products company's stock worth $25,258,000 after purchasing an additional 66,429 shares during the last quarter. 92.59% of the stock is currently owned by hedge funds and other institutional investors.

About Constellium

Constellium SE is a global manufacturer of value-added aluminum products and solutions. The company produces rolled, extruded and other fabricated aluminum products used in transportation, aerospace, automotive, packaging and industrial applications.

Its offerings include aluminum sheets, plates, coils, extrusions and structural components, as well as beverage can materials, foil stock, automotive body and structural parts, and aerospace components. Constellium also operates recycling activities that support the reuse of aluminum and the production of lower-carbon materials.

Constellium serves customers through manufacturing and engineering operations in North America, Europe and other international markets.

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