Embraer (NYSE:ERJ) Shares Gap Down – Should You Sell?

Embraer S.A. (NYSE:ERJ) gapped down before the market opened on Tuesday . The stock had previously closed at $38.81, but opened at $36.90. Embraer shares last traded at $37.06, with a volume of 538,536 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on ERJ. TD Cowen upgraded shares of Embraer from a “hold” rating to a “buy” rating and raised their target price for the stock from $26.00 to $41.00 in a report on Wednesday, September 4th. StockNews.com lowered Embraer from a “buy” rating to a “hold” rating in a research note on Tuesday, July 23rd. Bank of America reiterated a “buy” rating and set a $40.00 price objective on shares of Embraer in a research report on Tuesday, September 17th. Finally, UBS Group downgraded shares of Embraer from a “neutral” rating to a “sell” rating and increased their target price for the company from $29.00 to $32.00 in a research note on Tuesday. One research analyst has rated the stock with a sell rating, two have given a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $35.29.

Embraer Price Performance

The company has a debt-to-equity ratio of 0.74, a current ratio of 1.56 and a quick ratio of 0.76. The company’s 50 day simple moving average is $35.14 and its 200 day simple moving average is $31.47. The company has a market capitalization of $6.81 billion, a PE ratio of 14.28 and a beta of 1.70.

Institutional Investors Weigh In On Embraer

A number of large investors have recently made changes to their positions in the company. Dorsey Wright & Associates boosted its holdings in Embraer by 13.5% during the third quarter. Dorsey Wright & Associates now owns 146,873 shares of the aerospace company’s stock valued at $5,195,000 after acquiring an additional 17,484 shares during the period. Orion Portfolio Solutions LLC raised its position in shares of Embraer by 2.9% during the 3rd quarter. Orion Portfolio Solutions LLC now owns 44,174 shares of the aerospace company’s stock valued at $1,562,000 after acquiring an additional 1,241 shares during the last quarter. XTX Topco Ltd acquired a new position in shares of Embraer in the 3rd quarter valued at $1,203,000. State Street Corp raised its holdings in shares of Embraer by 1.3% during the third quarter. State Street Corp now owns 368,662 shares of the aerospace company’s stock worth $13,040,000 after acquiring an additional 4,666 shares during the period. Finally, Stifel Financial Corp grew its position in Embraer by 33.0% in the third quarter. Stifel Financial Corp now owns 75,219 shares of the aerospace company’s stock valued at $2,661,000 after purchasing an additional 18,656 shares in the last quarter. Institutional investors and hedge funds own 34.65% of the company’s stock.

Embraer Company Profile

Embraer SA designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft.