Constellium (NYSE:CSTM) Shares Down 6% – Should You Sell?

Shares of Constellium SE (NYSE:CSTM) were down 6% on Friday . The company traded as low as $22.30 and last traded at $22.2870. Approximately 346,063 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 2,114,191 shares. The stock had previously closed at $23.72.

Wall Street Analyst Weigh In

Several analysts recently issued reports on CSTM shares. BMO Capital Markets upped their price objective on shares of Constellium from $25.00 to $30.00 and gave the company an “outperform” rating in a research note on Wednesday, February 18th. Wells Fargo & Company lifted their price target on shares of Constellium from $25.00 to $29.00 and gave the company an “overweight” rating in a research report on Thursday, February 19th. Weiss Ratings reiterated a “hold (c)” rating on shares of Constellium in a report on Monday, December 29th. Zacks Research upgraded Constellium from a “hold” rating to a “strong-buy” rating in a research report on Friday, February 20th. Finally, JPMorgan Chase & Co. raised their target price on Constellium from $26.00 to $29.00 and gave the stock an “overweight” rating in a research note on Thursday, February 19th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $29.00.

Constellium Trading Down 5.7%

The business’s 50-day simple moving average is $24.15 and its two-hundred day simple moving average is $19.17. The firm has a market capitalization of $3.02 billion, a price-to-earnings ratio of 11.58 and a beta of 1.48. The company has a quick ratio of 0.51, a current ratio of 1.29 and a debt-to-equity ratio of 1.96.

Constellium (NYSE:CSTM) last issued its quarterly earnings data on Wednesday, February 18th. The industrial products company reported $0.80 EPS for the quarter, topping the consensus estimate of $0.36 by $0.44. The firm had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.05 billion. Constellium had a net margin of 3.23% and a return on equity of 32.14%. The business’s revenue for the quarter was up 27.9% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.34) EPS. Equities analysts forecast that Constellium SE will post 1.1 earnings per share for the current year.

Constellium announced that its Board of Directors has initiated a share repurchase plan on Thursday, March 12th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the industrial products company to buy up to 8.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Constellium

In other news, CFO Jack Q. Guo sold 41,717 shares of the firm’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $25.87, for a total transaction of $1,079,218.79. Following the completion of the transaction, the chief financial officer directly owned 190,879 shares in the company, valued at $4,938,039.73. This trade represents a 17.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Philip Ryan Jurkovic sold 29,900 shares of Constellium stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $25.87, for a total value of $773,513.00. Following the completion of the sale, the senior vice president directly owned 210,723 shares of the company’s stock, valued at $5,451,404.01. The trade was a 12.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 214,543 shares of company stock valued at $5,565,129 over the last ninety days. 1.54% of the stock is owned by insiders.

Hedge Funds Weigh In On Constellium

Institutional investors have recently bought and sold shares of the company. Millennium Management LLC lifted its position in shares of Constellium by 35.4% during the third quarter. Millennium Management LLC now owns 6,935,766 shares of the industrial products company’s stock worth $103,204,000 after purchasing an additional 1,813,400 shares in the last quarter. Encompass Capital Advisors LLC grew its holdings in shares of Constellium by 59.7% in the second quarter. Encompass Capital Advisors LLC now owns 5,362,760 shares of the industrial products company’s stock valued at $71,325,000 after purchasing an additional 2,005,216 shares in the last quarter. Vanguard Group Inc. increased its stake in Constellium by 22.9% during the 4th quarter. Vanguard Group Inc. now owns 4,054,982 shares of the industrial products company’s stock worth $76,436,000 after buying an additional 755,918 shares during the period. Morgan Stanley increased its stake in Constellium by 48.4% during the 4th quarter. Morgan Stanley now owns 3,728,118 shares of the industrial products company’s stock worth $70,275,000 after buying an additional 1,216,516 shares during the period. Finally, State Street Corp lifted its holdings in Constellium by 3.6% during the 4th quarter. State Street Corp now owns 2,660,518 shares of the industrial products company’s stock worth $50,151,000 after buying an additional 92,955 shares in the last quarter. 92.59% of the stock is owned by institutional investors and hedge funds.

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.