Constellium (NYSE:CSTM) Hits New 52-Week High After Analyst Upgrade

Constellium SE (NYSE:CSTM) hit a new 52-week high during mid-day trading on Wednesday after UBS Group upgraded the stock to a strong-buy rating. The stock traded as high as $33.81 and last traded at $33.69, with a volume of 690617 shares trading hands. The stock had previously closed at $32.96.

Several other brokerages have also issued reports on CSTM. Wells Fargo & Company raised their target price on shares of Constellium from $35.00 to $39.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Zacks Research lowered shares of Constellium from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. 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. 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. Finally, BMO Capital Markets set a $32.00 price target on shares of Constellium and gave the company an “outperform” rating in a research report on Thursday, April 9th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $36.60.

Insiders Place Their Bets

In related news, SVP Philip Ryan Jurkovic sold 48,784 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $32.01, for a total value of $1,561,575.84. Following the sale, the senior vice president directly owned 172,149 shares in the company, valued at $5,510,489.49. This trade represents a 22.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jean-Christophe Deslarzes purchased 1,325 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average price of $31.13 per share, for a total transaction of $41,247.25. Following the completion of the transaction, the director directly owned 42,025 shares in the company, valued at $1,308,238.25. This trade represents a 3.26% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 353,928 shares of company stock worth $10,029,961 over the last ninety days. Company insiders own 1.20% of the company’s stock.

Key Headlines Impacting Constellium

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: UBS initiated coverage of Constellium SE with a Buy rating and a $38 target, citing potential upside if used-beverage-can spreads stabilize. UBS initiates coverage of Constellium SE with Buy recommendation
• Positive Sentiment: Zacks upgraded Constellium to a Strong Buy and highlighted it as a momentum/value name, which may support additional investor demand. Zacks upgrade to Strong Buy
• Neutral Sentiment: Additional commentary continues to frame CSTM as a momentum and value stock, reinforcing positive sentiment but not adding a major new catalyst. Constellium relative performance commentary
• Neutral Sentiment: Analyst and screen-based “all-time high but still undervalued” coverage may help maintain interest, though it is more narrative than a direct catalyst. Insider Monkey article on Constellium
• Negative Sentiment: CFO Jack Q. Guo sold 25,201 shares at $32.62, reducing his stake by about 12%, which can weigh on sentiment. SEC filing for CFO sale
• Negative Sentiment: Director Michiel Brandjes sold 10,400 shares at $31.25, a 20% reduction in ownership that could be read as a cautionary signal. SEC filing for director sale

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CSTM. Royal Bank of Canada boosted its holdings in shares of Constellium by 5.3% in the first quarter. Royal Bank of Canada now owns 72,526 shares of the industrial products company’s stock valued at $732,000 after buying an additional 3,629 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Constellium by 354.0% in the first quarter. AQR Capital Management LLC now owns 91,566 shares of the industrial products company’s stock valued at $924,000 after buying an additional 71,396 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Constellium by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 77,021 shares of the industrial products company’s stock valued at $777,000 after buying an additional 3,393 shares during the period. Prudential Financial Inc. acquired a new position in shares of Constellium in the second quarter valued at approximately $218,000. Finally, Norges Bank acquired a new position in shares of Constellium in the second quarter valued at approximately $1,499,000. Institutional investors and hedge funds own 92.59% of the company’s stock.

Constellium Price Performance

The company has a market cap of $4.61 billion, a price-to-earnings ratio of 10.96 and a beta of 1.54. 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’s fifty day moving average price is $27.50 and its two-hundred day moving average price is $22.31.

Constellium (NYSE:CSTM) last released its quarterly earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.80. The company 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%. The business’s quarterly revenue was up 24.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.26 earnings per share. On average, equities research analysts forecast that Constellium SE will post 3.34 EPS for the current fiscal year.

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

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.