Embraer (NYSE:ERJ) Trading 5.8% Higher Following Better-Than-Expected Earnings

Embraer S.A. (NYSE:ERJ) shares traded up 5.8% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $45.38 and last traded at $45.36. 751,455 shares traded hands during trading, a decline of 39% from the average session volume of 1,236,136 shares. The stock had previously closed at $42.89.

The aerospace company reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.47. Embraer had a net margin of 8.24% and a return on equity of 11.61%.

Analyst Ratings Changes

Several analysts have issued reports on ERJ shares. TD Cowen upgraded Embraer to a “strong-buy” rating in a research note on Thursday, December 19th. Bank of America increased their price target on Embraer from $40.00 to $55.00 and gave the company a “buy” rating in a research note on Thursday, November 21st. UBS Group cut shares of Embraer from a “neutral” rating to a “sell” rating and lifted their price objective for the stock from $29.00 to $32.00 in a research report on Tuesday, November 19th. Finally, StockNews.com downgraded shares of 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 assigned a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $40.50.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ERJ. Carrhae Capital LLP boosted its position in shares of Embraer by 48.1% in the fourth quarter. Carrhae Capital LLP now owns 2,670,740 shares of the aerospace company’s stock valued at $97,963,000 after acquiring an additional 866,919 shares during the period. Gilder Gagnon Howe & Co. LLC boosted its holdings in Embraer by 19.0% in the 4th quarter. Gilder Gagnon Howe & Co. LLC now owns 2,439,060 shares of the aerospace company’s stock valued at $89,465,000 after purchasing an additional 390,094 shares during the period. Arrowstreet Capital Limited Partnership grew its position in shares of Embraer by 8.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,210,060 shares of the aerospace company’s stock worth $81,065,000 after purchasing an additional 176,182 shares in the last quarter. Jennison Associates LLC raised its position in shares of Embraer by 102.1% in the third quarter. Jennison Associates LLC now owns 1,331,631 shares of the aerospace company’s stock valued at $47,100,000 after buying an additional 672,644 shares in the last quarter. Finally, Invesco Ltd. grew its position in Embraer by 17,140.6% during the fourth quarter. Invesco Ltd. now owns 1,235,635 shares of the aerospace company’s stock worth $45,323,000 after buying an additional 1,228,468 shares in the last quarter. Institutional investors own 34.65% of the company’s stock.

Embraer Stock Performance

The stock has a market cap of $8.72 billion, a P/E ratio of 17.47 and a beta of 1.71. 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 stock has a 50 day simple moving average of $40.02 and a 200 day simple moving average of $36.94.

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.