Constellium (NYSE:CSTM) Reaches New 52-Week High – Should You Buy?

Constellium SE (NYSE:CSTM) reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $27.54 and last traded at $27.4520, with a volume of 5182641 shares. The stock had previously closed at $24.58.

Analyst Ratings Changes

CSTM has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft lifted their price objective on Constellium from $25.00 to $28.00 and gave the company a “buy” rating in a report on Thursday, February 19th. Weiss Ratings reissued a “hold (c)” rating on shares of Constellium in a research note on Monday, December 29th. Wells Fargo & Company lifted their price target on Constellium from $25.00 to $29.00 and gave the company an “overweight” rating in a research note on Thursday, February 19th. JPMorgan Chase & Co. upped their price objective on Constellium from $26.00 to $29.00 and gave the stock an “overweight” rating in a report on Thursday, February 19th. Finally, BMO Capital Markets increased their price objective on Constellium from $25.00 to $30.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $29.00.

Constellium Stock Up 11.7%

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’s 50-day simple moving average is $24.50 and its two-hundred day simple moving average is $19.74. The company has a market capitalization of $3.71 billion, a price-to-earnings ratio of 14.22 and a beta of 1.43.

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

Constellium declared that its board has authorized a stock repurchase plan on Thursday, March 12th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Constellium news, SVP Philip Ryan Jurkovic sold 29,900 shares of the business’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 $773,513.00. Following the sale, the senior vice president directly owned 210,723 shares in the company, valued at approximately $5,451,404.01. The trade was a 12.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Marcus Becker sold 15,570 shares of the company’s stock in a transaction on Friday, February 20th. The shares were sold at an average price of $25.58, for a total value of $398,280.60. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 214,543 shares of company stock valued at $5,565,129 in the last 90 days. Insiders own 1.54% of the company’s stock.

Institutional Investors Weigh In On Constellium

A number of large investors have recently added to or reduced their stakes in CSTM. Millennium Management LLC raised its position in 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 acquiring an additional 1,813,400 shares during the last quarter. Encompass Capital Advisors LLC lifted 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. grew its position in shares of Constellium by 22.9% in the fourth quarter. Vanguard Group Inc. now owns 4,054,982 shares of the industrial products company’s stock valued at $76,436,000 after purchasing an additional 755,918 shares during the last quarter. Morgan Stanley increased its stake in shares of 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 purchasing an additional 1,216,516 shares in the last quarter. Finally, State Street Corp increased its stake in shares of 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 purchasing 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.