Embraer (NYSE:ERJ) Reaches New 12-Month High After Strong Earnings

Embraer S.A. (NYSE:ERJ)’s share price reached a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $48.40 and last traded at $47.51, with a volume of 6887154 shares traded. The stock had previously closed at $42.89.

The aerospace company reported $0.94 earnings per share for the quarter, beating 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 return on equity of 11.61% and a net margin of 8.24%.

Wall Street Analyst Weigh In

Several brokerages have commented on ERJ. UBS Group lowered Embraer from a “neutral” rating to a “sell” rating and raised their price objective for the company from $29.00 to $32.00 in a report on Tuesday, November 19th. TD Cowen raised Embraer to a “strong-buy” rating in a report on Thursday, December 19th. Bank of America raised their price objective on Embraer from $40.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, November 21st. Finally, StockNews.com lowered Embraer from a “buy” rating to a “hold” rating in a report on Saturday, February 22nd. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $40.50.

Institutional Trading of Embraer

A number of institutional investors have recently made changes to their positions in the company. Ballentine Partners LLC boosted its stake in shares of Embraer by 4.0% in the fourth quarter. Ballentine Partners LLC now owns 7,614 shares of the aerospace company’s stock worth $279,000 after acquiring an additional 296 shares during the last quarter. Townsquare Capital LLC boosted its stake in shares of Embraer by 1.2% in the third quarter. Townsquare Capital LLC now owns 26,007 shares of the aerospace company’s stock worth $920,000 after acquiring an additional 310 shares during the last quarter. Angeles Investment Advisors LLC boosted its stake in shares of Embraer by 3.0% in the third quarter. Angeles Investment Advisors LLC now owns 11,753 shares of the aerospace company’s stock worth $416,000 after acquiring an additional 338 shares during the last quarter. LVW Advisors LLC boosted its stake in shares of Embraer by 3.3% in the fourth quarter. LVW Advisors LLC now owns 10,660 shares of the aerospace company’s stock worth $391,000 after acquiring an additional 340 shares during the last quarter. Finally, Lindbrook Capital LLC boosted its stake in shares of Embraer by 32.9% in the fourth quarter. Lindbrook Capital LLC now owns 1,572 shares of the aerospace company’s stock worth $58,000 after acquiring an additional 389 shares during the last quarter. 34.65% of the stock is owned by institutional investors and hedge funds.

Embraer Price Performance

The stock has a 50 day simple moving average of $40.25 and a two-hundred day simple moving average of $37.05. The company has a market cap of $8.74 billion, a price-to-earnings ratio of 17.50 and a beta of 1.71. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.56 and a quick ratio of 0.76.

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.