Constellium (NYSE:CSTM) Stock Price Breaks Below Two Hundred Day Moving Average - What's Next?

Key Points

• Constellium shares fell below their 200-day moving average of $29.44, trading as low as $24.93 and closing near $25.40.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $35.60, despite recent target reductions from UBS and Wells Fargo.
• The company reported stronger-than-expected quarterly results, including $1.04 in 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)'s share price crossed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $29.44 and traded as low as $24.93. Constellium shares last traded at $25.3960, with a volume of 1,341,925 shares changing hands.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CSTM. UBS Group cut their price target on Constellium from $38.00 to $35.00 and set a "buy" rating on the stock in a report on Wednesday, July 8th. Wells Fargo & Company decreased their price objective on Constellium from $39.00 to $38.00 and set an "overweight" rating for the company in a report on Friday, September 18th. Zacks Research upgraded Constellium from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 7th. Weiss Ratings restated a "hold (c+)" rating on shares of Constellium in a research note on Monday, September 28th. Finally, Deutsche Bank Aktiengesellschaft set a $39.00 price objective on shares of Constellium in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Constellium presently has a consensus rating of "Moderate Buy" and an average price target of $35.60.

Constellium Stock Performance

The company's 50-day moving average price is $26.86 and its two-hundred day moving average price is $29.44. The company has a market cap of $3.44 billion, a P/E ratio of 6.55 and a beta of 1.57. The company has a current ratio of 1.43, a quick ratio of 0.61 and a debt-to-equity ratio of 1.50.

Constellium (NYSE:CSTM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The industrial products company reported $1.04 EPS for the quarter, beating analysts' consensus estimates of $0.86 by $0.18. Constellium had a return on equity of 51.66% and a net margin of 5.69%.The company had revenue of $2.75 billion during the quarter, compared to the consensus estimate of $2.73 billion. During the same quarter in the prior year, the firm earned $0.25 EPS. The company's quarterly revenue was up 30.7% compared to the same quarter last year. As a group, equities analysts forecast that Constellium SE will post 3.7 earnings per share for the current year.

Insider Buying and Selling at Constellium

In other Constellium news, Director Jean-Christophe Deslarzes bought 1,490 shares of the stock in a transaction on Monday, August 3rd. The shares were bought at an average price of $27.24 per share, with a total value of $40,587.60. Following the purchase, the director directly owned 43,515 shares in the company, valued at $1,185,348.60. The trade was a 3.55% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Constellium

Hedge funds have recently made changes to their positions in the stock. Orion Capital Management LLC acquired a new position in Constellium in the 2nd quarter worth about $32,000. POM Investment Strategies LLC acquired a new stake in shares of Constellium during the 2nd quarter valued at about $32,000. USA Financial Formulas grew its stake in shares of Constellium by 94.9% in the 1st quarter. USA Financial Formulas now owns 2,253 shares of the industrial products company's stock valued at $55,000 after buying an additional 1,097 shares in the last quarter. IFP Advisors Inc grew its stake in shares of Constellium by 80.6% in the 2nd quarter. IFP Advisors Inc now owns 5,837 shares of the industrial products company's stock valued at $186,000 after buying an additional 2,605 shares in the last quarter. Finally, Allworth Financial LP grew its stake in shares of Constellium by 62.5% in the 2nd quarter. Allworth Financial LP now owns 6,021 shares of the industrial products company's stock valued at $192,000 after buying an additional 2,316 shares in the last quarter. 92.59% of the stock is owned by hedge funds and other institutional investors.

About Constellium

Constellium SE NYSE: CSTM is a global manufacturer of advanced aluminum products and solutions. The company develops, engineers and produces aluminum rolled, extruded and shaped products for customers in the aerospace, automotive, packaging and industrial markets.

Its products include aluminum sheets, plates, coils, extrusions, structural components and automotive body systems. Constellium also supplies aluminum products used in beverage cans, bottles and other packaging applications, as well as components for aircraft structures, automotive vehicles, commercial transportation and industrial equipment.

Constellium serves customers through manufacturing and research operations across Europe, North America and Asia.

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