Constellium (NYSE:CSTM) Sets New 12-Month High – Still a Buy?

Shares of Constellium SE (NYSE:CSTM) reached a new 52-week high on Tuesday . The company traded as high as $34.35 and last traded at $34.2390, with a volume of 1745233 shares trading hands. The stock had previously closed at $33.88.

Trending Headlines about Constellium

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

Analyst Upgrades and Downgrades

CSTM has been the topic of a number of analyst reports. JPMorgan Chase & Co. reiterated 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. UBS Group initiated coverage on shares of Constellium in a research note on Tuesday, May 5th. They issued a “buy” rating and a $38.00 price target on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $40.00 price target on shares of Constellium in a research note on Thursday, April 30th. Zacks Research cut shares of Constellium from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Finally, Wells Fargo & Company raised their price target on shares of Constellium from $35.00 to $39.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $36.60.

Constellium Stock Performance

The stock has a market capitalization of $4.70 billion, a P/E ratio of 11.18 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 business has a fifty day moving average price of $28.16 and a 200-day moving average price of $22.81.

Constellium (NYSE:CSTM) last announced its quarterly earnings results on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.80. The firm had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.43 billion. Constellium had a return on equity of 46.22% and a net margin of 4.87%.The company’s quarterly revenue was up 24.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.26 earnings per share. On average, sell-side analysts expect that Constellium SE will post 3.34 EPS for the current year.

Constellium announced that its Board of Directors has approved a share repurchase program on Thursday, March 12th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the industrial products company to repurchase up to 8.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Transactions at Constellium

In other news, SVP Ludovic Piquier sold 1,000 shares of Constellium stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $33.57, for a total value of $33,570.00. Following the completion of the sale, the senior vice president directly owned 241,713 shares in the company, valued at $8,114,305.41. The trade was a 0.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Stephane Corre sold 5,000 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $33.52, for a total value of $167,600.00. Following the transaction, the insider directly owned 62,313 shares in the company, valued at $2,088,731.76. The trade was a 7.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 386,589 shares of company stock valued at $11,133,606. Company insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Constellium

Hedge funds and other institutional investors have recently modified their holdings of the company. JPMorgan Chase & Co. grew its stake in shares of Constellium by 10.9% during 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 purchasing an additional 236,264 shares during the period. Knights of Columbus Asset Advisors LLC bought a new stake in shares of Constellium during the 3rd quarter valued at about $1,969,000. Sequoia Financial Advisors LLC bought a new stake in shares of Constellium during the 3rd quarter valued at about $2,876,000. Mitsubishi UFJ Trust & Banking Corp grew its stake in shares of Constellium by 89.1% during 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 purchasing an additional 57,337 shares during the period. Finally, Y Intercept Hong Kong Ltd grew its stake in shares of Constellium by 55.0% during 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 purchasing an additional 57,909 shares during the period. 92.59% of the stock is owned by institutional investors.

About Constellium

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.