Bank of America Issues Pessimistic Forecast for CAE (TSE:CAE) Stock Price

Key Points

• Bank of America cut CAE’s price target from C$45 to C$38, implying about 10.6% upside from the stock’s current price.
• CAE shares fell 2% to C$34.35, while the broader analyst consensus remains more positive: a “Moderate Buy” rating and average target of C$47.23.
• CAE reported quarterly EPS of C$0.26 on C$1.17 billion in revenue; insiders have sold 87,975 shares worth approximately C$3.1 million over the past three months.

CAE (TSE:CAE - Get Free Report) NYSE: CAE had its price target reduced by equities research analysts at Bank of America from C$45.00 to C$38.00 in a research note issued to investors on Thursday,BayStreet.CA reports. Bank of America's price objective suggests a potential upside of 10.63% from the stock's current price.

CAE has been the subject of several other research reports. Royal Bank Of Canada raised shares of CAE from a "hold" rating to a "moderate buy" rating in a research report on Monday, August 17th. National Bank Financial dropped their price objective on CAE from C$53.00 to C$49.00 and set an "outperform" rating for the company in a report on Monday, May 25th. Desjardins increased their target price on CAE from C$48.00 to C$49.00 and gave the stock a "buy" rating in a research report on Friday, August 14th. BMO Capital Markets reduced their target price on CAE from C$50.00 to C$47.00 and set an "outperform" rating on the stock in a report on Monday, May 25th. Finally, Stifel Nicolaus lowered their price target on CAE from C$50.00 to C$47.00 and set a "buy" rating for the company in a research report on Tuesday, May 26th. Ten analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of C$47.23.

CAE Trading Down 2.0%

CAE stock traded down C$0.70 during trading on Thursday, hitting C$34.35. The company's stock had a trading volume of 629,983 shares, compared to its average volume of 937,998. The stock's fifty day moving average is C$35.97 and its 200 day moving average is C$36.87. CAE has a 1-year low of C$31.42 and a 1-year high of C$47.65. The stock has a market capitalization of C$11.06 billion, a price-to-earnings ratio of 38.60, a P/E/G ratio of 1.76 and a beta of 0.57. The company has a debt-to-equity ratio of 59.43, a quick ratio of 0.71 and a current ratio of 0.83.

CAE (TSE:CAE - Get Free Report) NYSE: CAE last posted its quarterly earnings results on Wednesday, August 12th. The company reported C$0.26 EPS for the quarter. The company had revenue of C$1.17 billion during the quarter. CAE had a return on equity of 5.47% and a net margin of 5.75%.

Insider Activity at CAE

In other news, insider Phillip C. Copeland sold 1,770 shares of the business's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of C$35.39, for a total transaction of C$62,640.30. Following the transaction, the insider directly owned 5,906 shares of the company's stock, valued at approximately C$209,013.34. The trade was a 23.06% decrease in their ownership of the stock. Also, insider Andrew Arnovitz sold 1,408 shares of the company's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of C$35.39, for a total transaction of C$49,829.12. Following the completion of the transaction, the insider owned 5,691 shares of the company's stock, valued at C$201,404.49. This trade represents a 19.83% decrease in their ownership of the stock. Over the last three months, insiders have sold 87,975 shares of company stock valued at $3,127,182. 0.15% of the stock is currently owned by corporate insiders.

About CAE

CAE Inc is a global company focused on delivering training for the civil aviation, defense, security, and healthcare markets. Multiple types of simulators and synthetic exercises may be sold to customers to serve as alternatives for live-training experiences. The company's training solutions are provided through products and services. CAE has many different training locations where clients can be trained and educated through a series of programs. Additionally, part of the revenues come from supplying aviation personnel on a lease, along with providing aviation support organizations.

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