Constellium (CSTM) Soars 11% on Aluminum Supply Concerns

Constellium SE (NYSE:CSTM) is one of the 10 Stocks Outperforming Wall Street with Outsized Gains.

Constellium saw its share prices jump by 11.15 percent on Wednesday to finish at $27.32 apiece, as investors loaded portfolios in aluminum stocks on bets of supply shortage following an attack on two Middle Eastern producers earlier in the week.

Constellium rallied alongside its counterparts, namely Alcoa Corp. and Century Aluminum, as investors bet that a slash in global aluminum supply could spark higher prices, thus increasing profit margins for the producers.

According to data from Trading Economics, prices of aluminum on Wednesday further jumped by 2.75 percent to $3,523.80.

In other news, Constellium SE (NYSE:CSTM) last month authorized a $300 million share buyback program, which will become effective after May 21, 2026.

Constellium (CSTM) Soars 11% on Aluminum Supply Concerns

Pixabay/Public Domain

The new share repurchase program will replace the current share repurchase program authorized by the Board of Directors in February 2024, while Constellium SE (NYSE:CSTM) retains the ability to repurchase shares under the current program until the new program takes effect.

Under this new share repurchase program, the company will be able to repurchase its own shares from time to time for cash in open market transactions or in privately-negotiated transactions.

While we acknowledge the risk and potential of CSTM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSTM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.