Finance

Should You Invest in Constellium N.V (CSTM)? A Look at the Insider Trends

Recent insider trends for Constellium N.V (NYSE:CSTM) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CSTM is anything to go by, investors should pay attention.

Institutions own 56.31% of Constellium N.V (CSTM)’s shares. The total value of these holdings, in millions, is $619. Among active positions in the latest quarter, 58 holders increased their positions by a total of 8.34 million shares, 64 holders decreased the positions by a total of 14.73 million shares, and 20 holders held their positions. This works out to a net decrease in ownership of 6.39 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 18 holders initiated new positions by a total of 4.81 million shares and 20 holders exited their positions by a total of 6.13 million shares. This nets out to a decrease of 1.32 million shares and is another bearish sign for CSTM.

Insider ownership increased by a total of 0 shares, which suggests that CSTM’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.



Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Constellium N.V (NYSE:CSTM)’s short interest is 394500 shares, or 0.46% of the float. This represents an increase of 32% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CSTM is a Strong buy, which implies that CSTM is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Constellium N.V (NYSE:CSTM) is undervalued.

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