Insider Selling: Constellium (NYSE:CSTM) CFO Sells 25,201 Shares of Stock

Constellium SE (NYSE:CSTM) CFO Jack Guo sold 25,201 shares of Constellium stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $32.62, for a total transaction of $822,056.62. Following the completion of the transaction, the chief financial officer owned 185,368 shares of the company’s stock, valued at $6,046,704.16. This represents a 11.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

Constellium Stock Down 1.2%

Shares of NYSE:CSTM traded down $0.40 during trading hours on Thursday, reaching $32.93. The stock had a trading volume of 598,021 shares, compared to its average volume of 2,207,818. Constellium SE has a 1 year low of $10.90 and a 1 year high of $33.86. The firm’s 50 day moving average is $27.34 and its 200-day moving average is $22.18. The stock has a market capitalization of $4.48 billion, a price-to-earnings ratio of 10.66 and a beta of 1.54. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.60 and a current ratio of 1.39.

Constellium (NYSE:CSTM) last released its quarterly earnings data on Wednesday, April 29th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.80. The business 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 company’s revenue for the quarter was up 24.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.26 EPS. Research analysts predict that Constellium SE will post 2.85 earnings per share for the current fiscal year.

Constellium announced that its Board of Directors has initiated a share buyback 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 board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. restated a “neutral” rating and set a $34.00 target price (up from $30.00) on shares of Constellium in a research note on Thursday, April 30th. BMO Capital Markets set a $32.00 price objective on shares of Constellium and gave the stock an “outperform” rating in a report on Thursday, April 9th. Zacks Research downgraded shares of Constellium from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 13th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $40.00 target price on shares of Constellium in a report on Thursday, April 30th. Finally, UBS Group began coverage on shares of Constellium in a research report on Tuesday. They issued a “buy” rating and a $38.00 target price on the stock. One investment 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 stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $36.60.

Key Constellium News

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: UBS initiated coverage with a Buy and $38 price target, calling current market views too bearish on can?spread normalization — a high?profile analyst endorsement that can attract flows and lift valuation. Is Constellium (CSTM) the Best All-Time High But Still Undervalued Stock to Invest In?
• Positive Sentiment: Zacks added CSTM to its Rank #1 (Strong Buy)/momentum lists and other screens highlighting fast recent gains at still?reasonable valuation — this can boost retail and quantitative inflows. Best Momentum Stock to Buy for May 7th
• Positive Sentiment: Strong Q1 results (large EPS beat and ~24% revenue growth), plus a $300M share?repurchase program and potential aerospace (Airbus) upside are cited as catalysts for sustained earnings and multiple expansion. Stronger Q1 Results, Buybacks, Airbus Deal Could Be A Game Changer For Constellium (CSTM)
• Positive Sentiment: Broker support has increased (Deutsche Bank, BMO and others issuing Buy/outperform or higher targets), which helps sentiment and could underpin further upside if execution continues. Constellium analyst coverage roundup
• Neutral Sentiment: Some commentary notes the rally depends on sustainability of margins and free cash flow — investors should watch upcoming quarterly cadence and capex/cash conversion. Constellium quarter improves setup but sustainability needs proof
• Negative Sentiment: Significant insider selling: Philippe Hoffmann sold 50,000 shares (~$1.6M), reducing his stake materially; multiple recent senior insider disposals could be viewed negatively by some investors. Constellium Insider Philippe Hoffmann Sells 50,000 Shares

Hedge Funds Weigh In On Constellium

Hedge funds and other institutional investors have recently bought and sold shares of the company. JPMorgan Chase & Co. lifted its position in Constellium by 10.9% in the third 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. Sequoia Financial Advisors LLC purchased a new stake in shares of Constellium in the third quarter valued at $2,876,000. Knights of Columbus Asset Advisors LLC acquired a new stake in Constellium during the third quarter worth approximately $1,969,000. Mitsubishi UFJ Trust & Banking Corp grew its holdings in 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 during the period. Finally, SG Americas Securities LLC grew its stake in shares of Constellium by 97.2% during the 3rd quarter. SG Americas Securities LLC now owns 889,288 shares of the industrial products company’s stock valued at $13,233,000 after buying an additional 438,412 shares during the period. 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.