Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
Rumors of a buyout have this aluminum stock on fire today.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Motley Fool Returns
Market-beating stocks from our flagship service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 2025-08-29 09:26:32.258306.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
Shares of aluminum maker Constellium N.V. (CSTM +0.00%) jumped as much as 18.7% in trading Friday after rumors began swirling the company could be bought out. At 3:30 p.m. EDT shares were trading up 17.1% on the day.
Bloomberg reported today that Constellium has gotten buyout interest from unnamed companies. According to Credit Suisse analysts, the company could be worth $16 to $18 per share, about double what shares were worth at the close of the market Thursday.
Image source: Getty Images.
There's nothing more than reports and rumors right now, but watch to see if management addresses these reports over the weekend -- that could give them credence, or leave them in the unconfirmed rumor mill.
Buying on a rumor is risky, and that's what will keep me out of the stock today. But Constellium is in a good market serving aerospace customers, and with shares trading at about 10 times forward estimates there could be value for buyers. But don't be surprised if the stock falls if management says they aren't considering an offer, because all that's driving the stock higher today is rumors.