Embraer (NYSE:ERJ) Shares Gap Down – Here’s Why

Embraer S.A. (NYSE:ERJ) shares gapped down before the market opened on Tuesday . The stock had previously closed at $46.20, but opened at $45.22. Embraer shares last traded at $45.56, with a volume of 238,852 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. Wolfe Research reissued a “peer perform” rating on shares of Embraer in a research note on Monday, March 24th. The Goldman Sachs Group raised their price target on shares of Embraer from $44.00 to $50.00 and gave the company a “buy” rating in a research report on Monday, March 3rd. TD Cowen raised Embraer to a “strong-buy” rating in a research report on Thursday, December 19th. Finally, StockNews.com lowered Embraer from a “buy” rating to a “hold” rating in a report on Monday, March 10th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, two 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 currently has a consensus rating of “Moderate Buy” and an average target price of $44.50.

Embraer Stock Performance

The company has a market capitalization of $8.47 billion, a PE ratio of 16.94 and a beta of 1.70. The stock’s 50-day simple moving average is $45.91 and its 200 day simple moving average is $39.68. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.76 and a current ratio of 1.56.

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

Institutional Investors Weigh In On Embraer

Institutional investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC increased its stake in Embraer by 39.2% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 24,212 shares of the aerospace company’s stock valued at $888,000 after purchasing an additional 6,822 shares during the last quarter. Employees Retirement System of Texas raised its stake in Embraer by 9.5% during the 4th quarter. Employees Retirement System of Texas now owns 37,900 shares of the aerospace company’s stock worth $1,390,000 after acquiring an additional 3,300 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in Embraer in the fourth quarter valued at $5,042,000. Ulysses Management LLC acquired a new position in Embraer in the fourth quarter valued at $2,017,000. Finally, Two Sigma Investments LP grew its holdings in shares of Embraer by 27.4% during the fourth quarter. Two Sigma Investments LP now owns 506,051 shares of the aerospace company’s stock worth $18,562,000 after purchasing an additional 108,740 shares during the last quarter. Hedge funds and other institutional investors own 34.65% of the company’s stock.

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.