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

Vanguard Group Inc. lifted its position in Constellium SE (NYSE:CSTM) by 22.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,054,982 shares of the industrial products company’s stock after buying an additional 755,918 shares during the period. Vanguard Group Inc.’s holdings in Constellium were worth $76,436,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. JPMorgan Chase & Co. increased its position in shares of Constellium by 10.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 2,407,597 shares of the industrial products company’s stock valued at $35,825,000 after buying an additional 236,264 shares in the last quarter. Knights of Columbus Asset Advisors LLC bought a new stake in shares of Constellium in the 3rd quarter valued at $1,969,000. Sequoia Financial Advisors LLC bought a new stake in shares of Constellium in the 3rd quarter valued at $2,876,000. Mitsubishi UFJ Trust & Banking Corp increased its position in shares of Constellium by 89.1% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 121,720 shares of the industrial products company’s stock valued at $1,811,000 after buying an additional 57,337 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd increased its position in shares of Constellium by 55.0% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 163,261 shares of the industrial products company’s stock valued at $2,429,000 after buying an additional 57,909 shares in the last quarter. Institutional investors own 92.59% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. UBS Group assumed coverage on Constellium in a report on Tuesday, May 5th. They set a “buy” rating and a $38.00 target price for the company. Zacks Research upgraded Constellium from a “hold” rating to a “strong-buy” rating in a report on Tuesday. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $34.00 target price (up from $30.00) on shares of Constellium in a report on Thursday, April 30th. BMO Capital Markets set a $32.00 target price on Constellium and gave the stock an “outperform” rating in a report on Thursday, April 9th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $40.00 target price on shares of Constellium in a report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Constellium currently has a consensus rating of “Buy” and a consensus target price of $36.60.

Key Constellium News

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

Constellium Price Performance

CSTM stock opened at $34.54 on Thursday. The stock has a 50-day moving average price of $28.16 and a two-hundred day moving average price of $22.81. The stock has a market cap of $4.70 billion, a PE ratio of 11.18 and a beta of 1.54. The company has a current ratio of 1.39, a quick ratio of 0.60 and a debt-to-equity ratio of 1.71. Constellium SE has a 1 year low of $11.23 and a 1 year high of $34.61.

Constellium (NYSE:CSTM) last released its earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.80. The firm had revenue of $2.46 billion during the quarter, compared to analysts’ expectations of $2.43 billion. Constellium had a return on equity of 46.22% and a net margin of 4.87%.The company’s revenue was up 24.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.26 EPS. Equities 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 buyback plan on Thursday, March 12th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the industrial products company to buy up to 8.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, SVP Philip Ryan Jurkovic sold 48,784 shares of the firm’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $32.01, for a total value of $1,561,575.84. Following the completion of the transaction, the senior vice president 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 Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jack Q. Guo sold 41,717 shares of the firm’s stock in a transaction dated 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 owned 190,879 shares of the company’s stock, valued at $4,938,039.73. The trade was a 17.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 386,589 shares of company stock worth $11,133,606 over the last three months. Company insiders own 1.20% of the company’s stock.

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.