Constellium (NYSE:CSTM) Shares Gap Down – Here’s Why

Shares of Constellium SE (NYSE:CSTM) gapped down prior to trading on Wednesday . The stock had previously closed at $35.28, but opened at $33.00. Constellium shares last traded at $32.8120, with a volume of 1,395,612 shares changing hands.

Wall Street Analyst Weigh In

CSTM has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $40.00 price target on shares of Constellium in a research note on Thursday, April 30th. Zacks Research raised Constellium from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $34.00 price target (up from $30.00) on shares of Constellium in a research note on Thursday, April 30th. Wells Fargo & Company boosted their price target on Constellium from $35.00 to $39.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Finally, UBS Group initiated coverage on Constellium in a research note on Tuesday, May 5th. They issued a “buy” rating and a $38.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $36.60.

Constellium Stock Performance

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 50 day simple moving average of $29.49 and a 200-day simple moving average of $23.86. The stock has a market capitalization of $4.57 billion, a price-to-earnings ratio of 10.82 and a beta of 1.54.

Constellium (NYSE:CSTM) last issued 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. Constellium had a return on equity of 46.22% and a net margin of 4.87%.The company had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same period in the prior year, the firm earned $0.26 earnings per share. Constellium’s revenue for the quarter was up 24.4% on a year-over-year basis. As a group, equities research analysts expect that Constellium SE will post 3.34 EPS for the current fiscal year.

Constellium declared that its Board of Directors has authorized a share repurchase program on Thursday, March 12th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at Constellium

In other news, SVP Philip Ryan Jurkovic sold 48,784 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $32.01, for a total transaction of $1,561,575.84. Following the transaction, the senior vice president directly owned 172,149 shares of the company’s stock, valued at $5,510,489.49. This represents a 22.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Michiel Brandjes sold 10,400 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $31.25, for a total value of $325,000.00. Following the transaction, the director directly owned 41,600 shares in the company, valued at $1,300,000. The trade was 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 acquired 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.

Hedge Funds Weigh In On Constellium

A number of institutional investors have recently modified their holdings of the company. Bank of America Corp DE raised its position in shares of Constellium by 100.1% during the first quarter. Bank of America Corp DE now owns 851,222 shares of the industrial products company’s stock worth $20,923,000 after purchasing an additional 425,871 shares during the period. Edgestream Partners L.P. raised its position in Constellium by 9.9% in the 1st quarter. Edgestream Partners L.P. now owns 226,292 shares of the industrial products company’s stock valued at $5,562,000 after buying an additional 20,370 shares during the last quarter. Janus Henderson Group PLC raised its position in Constellium by 775.9% in the 1st quarter. Janus Henderson Group PLC now owns 439,301 shares of the industrial products company’s stock valued at $10,797,000 after buying an additional 389,147 shares during the last quarter. Amundi purchased a new stake in Constellium in the 1st quarter valued at $218,000. Finally, California State Teachers Retirement System raised its position in Constellium by 24.0% in the 1st quarter. California State Teachers Retirement System now owns 145,732 shares of the industrial products company’s stock valued at $3,582,000 after buying an additional 28,191 shares during the last quarter. 92.59% of the stock is owned by institutional investors and hedge funds.

Constellium Company 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.