Embraer S.A. (NYSE:ERJ) marked $10.18 per share on Thursday, up from a previous closing price of $9.55. While Embraer S.A. has overperformed by 6.60%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ERJ fell by -28.11%, with highs and lows ranging from $19.40 to $7.91, whereas the simple moving average fell by -21.06% in the last 200 days.
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On January 20, 2022, Morgan Stanley Upgraded Embraer S.A. (NYSE: ERJ) to Overweight. A report published by UBS on November 11, 2021, Upgraded its rating to ‘Buy’ for ERJ. Goldman also Upgraded ERJ shares as ‘Buy’, setting a target price of $23 on the company’s shares in a report dated September 23, 2021. BofA Securities June 11, 2021d the rating to Buy on June 11, 2021, and set its price target from $8 to $20. Morgan Stanley August 11, 2020d its ‘Equal-Weight’ rating to ‘Underweight’ for ERJ, as published in its report on August 11, 2020. Credit Suisse also rated the stock as ‘Underperform’.
Analysis of Embraer S.A. (ERJ)
Further, the quarter-over-quarter decrease in sales is -30.90%, showing a negative trend in the upcoming months.
In order to gain a clear picture of Embraer S.A.’s future performance, a variety of well-rounded analysis and research techniques can be applied, with equity being the most critical. The goal here is to ensure that your current return on equity of 0.30% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.20, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
An average volume of 2.34M can be a very valuable indicator of volatility for ERJ stock. On a monthly basis, the volatility of the stock is set at 3.89%, whereas on a weekly basis, it is put at 4.20%, with a gain of 11.75% over the past seven days. Furthermore, long-term investors anticipate a median target price of $18.90, showing growth from the present price of $10.18, which can serve as yet another indication of whether ERJ is worth investing in or should be passed over.
How Do You Analyze Embraer S.A. Shares?
The Brazil based company Embraer S.A. (ERJ) is one of the biggest names in Aerospace & Defense. When comparing Embraer S.A. shares with other companies under Industrials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 221.30, there is a growth in quarterly earnings of 65.10%.
In addition to the fundamentals, you should also consider how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 12.40%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 41.10% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in ERJ shares?
The recent increase in stakes in ERJ appears to be a result of several institutional investors and hedge funds increasing their positions. Brandes Investment Partners LP’s position in ERJ has increased by 1.12% in the first quarter. The company now owns 19,098,457 shares of the stock, with a value of $167.68 million, following the purchase of 210,806 additional shares during the last quarter. American Century Investment Manag made another decreased to its shares in ERJ during the first quarter, downing its stake by -17.47%. During the last quarter, the company dropped down -816,772 additional shares for a total stake of worth $33.88 million, bringing number of shares owned by the company to 3,858,310.
During the first quarter, SPX Equities Gestão de Recursos L subtracted a -104,996 position in ERJ. Becker Capital Management, Inc. purchased an additional 0.12 million shares in the last quarter, increasing its holdings by 3.57%, now holding 3.46 million shares worth $30.41 million. At the end of the first quarter, IPG Investment Advisors LLC increased its ERJ holdings by 14.70% and now holds 2.92 million ERJ shares valued at $25.67 million with the added 0.37 million shares during the period. ERJ shares are owned by institutional investors to the tune of 41.10% at present.
