Embraer (NYSE:ERJ) Shares Gap Down – What’s Next?

Shares of Embraer S.A. (NYSE:ERJ) gapped down before the market opened on Monday . The stock had previously closed at $52.64, but opened at $51.08. Embraer shares last traded at $50.10, with a volume of 209,290 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on ERJ shares. The Goldman Sachs Group boosted their price target on Embraer from $44.00 to $50.00 and gave the stock a “buy” rating in a report on Monday, March 3rd. StockNews.com lowered shares of Embraer from a “buy” rating to a “hold” rating in a report on Monday, March 10th. Wolfe Research reaffirmed a “peer perform” rating on shares of Embraer in a research note on Monday. Finally, TD Cowen upgraded shares of Embraer to a “strong-buy” rating in a report on Thursday, December 19th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, Embraer currently has a consensus rating of “Moderate Buy” and an average target price of $44.50.

Embraer Price Performance

The company has a current ratio of 1.56, a quick ratio of 0.76 and a debt-to-equity ratio of 0.74. The business’s 50-day simple moving average is $45.28 and its two-hundred day simple moving average is $39.34. The firm has a market cap of $8.99 billion, a price-to-earnings ratio of 18.00 and a beta of 1.70.

Embraer (NYSE:ERJ) last posted its quarterly earnings data on Thursday, February 27th. The aerospace company reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.47. The company had revenue of $2.31 billion during the quarter, compared to analysts’ expectations of $2.21 billion. Embraer had a net margin of 8.24% and a return on equity of 11.61%. As a group, research analysts expect that Embraer S.A. will post 2.04 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in ERJ. Principal Financial Group Inc. increased its holdings in Embraer by 5.3% in the fourth quarter. Principal Financial Group Inc. now owns 177,602 shares of the aerospace company’s stock worth $6,514,000 after purchasing an additional 8,938 shares in the last quarter. Ninety One North America Inc. increased its stake in shares of Embraer by 14.5% in the 4th quarter. Ninety One North America Inc. now owns 84,451 shares of the aerospace company’s stock valued at $3,098,000 after acquiring an additional 10,665 shares in the last quarter. Stifel Financial Corp lifted its position in shares of Embraer by 33.0% during the 3rd quarter. Stifel Financial Corp now owns 75,219 shares of the aerospace company’s stock valued at $2,661,000 after acquiring an additional 18,656 shares during the period. Healthcare of Ontario Pension Plan Trust Fund bought a new position in Embraer during the third quarter worth $10,611,000. Finally, QRG Capital Management Inc. acquired a new stake in Embraer in the fourth quarter worth $243,000. 34.65% of the stock is owned by institutional investors and hedge funds.

About Embraer

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.