Constellium (NYSE:CSTM) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of Constellium (NYSE:CSTM) from a hold rating to a strong-buy rating in a research report sent to investors on Tuesday,Zacks.com reports.

CSTM has been the subject of several other research reports. 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. UBS Group initiated coverage on shares of Constellium in a report on Tuesday, May 5th. They issued a “buy” rating and a $38.00 price objective for the company. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $40.00 price objective on shares of Constellium in a report on Thursday, April 30th. Wells Fargo & Company upped their price objective on shares of Constellium from $35.00 to $39.00 and gave the stock an “overweight” rating in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $34.00 price objective (up from $30.00) on shares of Constellium in a report on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average price target of $36.60.

Constellium Stock Up 3.7%

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

Constellium (NYSE:CSTM) last released its quarterly earnings results on Wednesday, April 29th. The industrial products company reported $1.42 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 analyst estimates of $2.43 billion. Constellium had a net margin of 4.87% and a return on equity of 46.22%. The company’s quarterly revenue was up 24.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.26 earnings per share. Research analysts predict that Constellium will post 3.34 EPS for the current year.

Constellium announced that its Board of Directors has authorized a share buyback plan on Thursday, March 12th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the industrial products company to repurchase up to 8.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Insider Activity at Constellium

In related news, SVP Ludovic Piquier sold 1,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $33.57, for a total value of $33,570.00. Following the transaction, the senior vice president owned 241,713 shares in the company, valued at approximately $8,114,305.41. This represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Nicolas Brun sold 26,661 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $33.85, for a total value of $902,474.85. Following the completion of the transaction, the senior vice president owned 104,891 shares in the company, valued at $3,550,560.35. This represents a 20.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 386,589 shares of company stock valued at $11,133,606. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Constellium

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sei Investments Co. grew its holdings in Constellium by 159.2% during the first quarter. Sei Investments Co. now owns 231,774 shares of the industrial products company’s stock valued at $5,697,000 after purchasing an additional 142,340 shares during the last quarter. Walleye Capital LLC acquired a new position in Constellium during the first quarter valued at approximately $496,000. Globeflex Capital L P bought a new stake in shares of Constellium in the first quarter valued at approximately $635,000. State of Wyoming boosted its position in shares of Constellium by 5.1% in the first quarter. State of Wyoming now owns 35,655 shares of the industrial products company’s stock valued at $876,000 after acquiring an additional 1,728 shares during the period. Finally, Cetera Investment Advisers bought a new stake in shares of Constellium in the first quarter valued at approximately $2,644,000. Institutional investors and hedge funds own 92.59% of the company’s stock.

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

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.