Constellium (NYSE:CSTM) Reaches New 1-Year High – Time to Buy?

Constellium SE (NYSE:CSTM)’s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $28.29 and last traded at $27.1050, with a volume of 2698772 shares trading hands. The stock had previously closed at $27.83.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. BMO Capital Markets upped their price objective on Constellium from $25.00 to $30.00 and gave the company an “outperform” rating in a research report on Wednesday, February 18th. JPMorgan Chase & Co. upped their price objective on Constellium from $26.00 to $29.00 and gave the company an “overweight” rating in a research report on Thursday, February 19th. Deutsche Bank Aktiengesellschaft upped their price objective on Constellium from $25.00 to $28.00 and gave the company a “buy” rating in a research report on Thursday, February 19th. Weiss Ratings restated a “hold (c)” rating on shares of Constellium in a research report on Monday, December 29th. Finally, Zacks Research upgraded Constellium from a “hold” rating to a “strong-buy” rating in a research report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $29.00.

Constellium Stock Performance

The company has a debt-to-equity ratio of 1.96, a current ratio of 1.29 and a quick ratio of 0.51. The firm has a fifty day moving average price of $24.88 and a two-hundred day moving average price of $20.11. The stock has a market capitalization of $3.66 billion, a PE ratio of 14.04 and a beta of 1.43.

Constellium (NYSE:CSTM) last issued its quarterly earnings results on Thursday, February 19th. The industrial products company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.44. Constellium had a return on equity of 32.14% and a net margin of 3.23%.The firm had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.05 billion. During the same period in the prior year, the business posted ($0.34) earnings per share. The company’s revenue for the quarter was up 27.9% on a year-over-year basis. Research analysts expect that Constellium SE will post 1.1 EPS for the current year.

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

Insider Transactions at Constellium

In other news, CFO Jack Q. Guo sold 41,717 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $25.87, for a total value of $1,079,218.79. Following the sale, the chief financial officer directly owned 190,879 shares in the company, valued at approximately $4,938,039.73. This represents a 17.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Ingrid Joerg sold 4,614 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $25.87, for a total value of $119,364.18. Following the completion of the sale, the chief executive officer owned 378,090 shares in the company, valued at approximately $9,781,188.30. The trade was a 1.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 214,543 shares of company stock valued at $5,565,129. Company insiders own 1.54% of the company’s stock.

Institutional Investors Weigh In On Constellium

Several hedge funds and other institutional investors have recently modified their holdings of CSTM. Royal Bank of Canada raised 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 worth $732,000 after buying an additional 3,629 shares during the period. AQR Capital Management LLC grew its stake in Constellium by 354.0% in the first quarter. AQR Capital Management LLC now owns 91,566 shares of the industrial products company’s stock worth $924,000 after purchasing an additional 71,396 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in 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 worth $777,000 after purchasing an additional 3,393 shares in the last quarter. Legal & General Group Plc grew its stake in Constellium by 281.1% in the second quarter. Legal & General Group Plc now owns 132,088 shares of the industrial products company’s stock worth $1,757,000 after purchasing an additional 97,426 shares in the last quarter. Finally, Prudential Financial Inc. bought a new position in Constellium in the second quarter worth approximately $218,000. 92.59% of the stock is currently owned by hedge funds and other institutional investors.

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.