While Embraer S.A. ADR has underperformed by -1.16%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ERJ rose by 56.71%, with highs and lows ranging from $27.25 to $12.48, whereas the simple moving average jumped by 48.73% in the last 200 days.
On March 26, 2024, UBS Downgraded Embraer S.A. ADR (NYSE: ERJ) to Neutral. A report published by HSBC Securities on February 06, 2024, Downgraded its rating to ‘Hold’ for ERJ. Citigroup also Upgraded ERJ shares as ‘Buy’, setting a target price of $16 on the company’s shares in a report dated October 16, 2023. UBS Initiated an Buy rating on January 09, 2023, and assigned a price target of $14. Wolfe Research initiated its ‘Outperform’ rating for ERJ, as published in its report on October 11, 2022. Morgan Stanley’s report from January 20, 2022 suggests a price prediction of $23 for ERJ shares, giving the stock a ‘Overweight’ rating. UBS also rated the stock as ‘Buy’.
Analysis of Embraer S.A. ADR (ERJ)
Further, the quarter-over-quarter decrease in sales is -1.33%, showing a negative trend in the upcoming months.
One of the most important indicators of Embraer S.A. ADR’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of 6.11% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.93, 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.
For any stock, average volume can also provide valuable insight into volatility, and ERJ is recording 1.64M average volume. On a monthly basis, the volatility of the stock is set at 3.33%, whereas on a weekly basis, it is put at 2.19%, with a loss of -0.23% over the past seven days. Furthermore, long-term investors anticipate a median target price of $31.75, showing growth from the present price of $25.59, 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. ADR Shares?
The Aerospace & Defense market is dominated by Embraer S.A. ADR (ERJ) based in the Brazil. When comparing Embraer S.A. ADR 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 28.94, there is a growth in quarterly earnings of 740.03%.
Along with the fundamentals, it is also important to consider how many employees own shares of 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 0.05%. 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 37.35% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
ERJ shares are owned by institutional investors to the tune of 37.35% at present.
