CAE Inc (NYSE:CAE) Sees Significant Increase in Short Interest

Key Points

• CAE Inc experienced a 107.8% increase in short interest in September, totaling approximately 3,470,000 shares short sold as of September 30th.
• The company reported a net margin of 8.70% and revenue of $806.92 million for the quarter, which was below analysts' expectations of $1.12 billion.
• Analysts have a consensus rating of "Moderate Buy" for CAE, with an average target price of $33.67, indicating growth potential for the stock.

CAE Inc (NYSE:CAE - Get Free Report) TSE: CAE saw a significant increase in short interest in the month of September. As of September 30th, there was short interest totaling 3,470,000 shares, an increase of 107.8% from the September 15th total of 1,670,000 shares. Approximately 1.1% of the shares of the company are short sold. Based on an average daily trading volume, of 653,700 shares, the days-to-cover ratio is currently 5.3 days. Based on an average daily trading volume, of 653,700 shares, the days-to-cover ratio is currently 5.3 days. Approximately 1.1% of the shares of the company are short sold.

CAE Stock Performance

CAE stock traded up $0.67 on Monday, hitting $28.07. The company's stock had a trading volume of 591,997 shares, compared to its average volume of 632,740. The firm has a 50 day moving average of $27.60 and a two-hundred day moving average of $26.85. CAE has a 1 year low of $17.58 and a 1 year high of $30.13. The stock has a market cap of $9.00 billion, a price-to-earnings ratio of 30.51, a price-to-earnings-growth ratio of 2.43 and a beta of 1.36. The company has a current ratio of 0.87, a quick ratio of 0.60 and a debt-to-equity ratio of 0.63.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last announced its quarterly earnings data on Tuesday, August 12th. The aerospace company reported $0.15 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.15. CAE had a net margin of 8.70% and a return on equity of 7.92%. The company had revenue of $806.92 million for the quarter, compared to analysts' expectations of $1.12 billion. During the same period in the previous year, the company posted $0.21 EPS. Equities analysts predict that CAE will post 0.83 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Employees Retirement System of Texas acquired a new stake in CAE in the second quarter valued at approximately $80,000. Bessemer Group Inc. lifted its stake in CAE by 360.9% during the second quarter. Bessemer Group Inc. now owns 4,402 shares of the aerospace company's stock worth $129,000 after purchasing an additional 3,447 shares during the last quarter. State of Wyoming lifted its stake in CAE by 39.4% during the first quarter. State of Wyoming now owns 8,431 shares of the aerospace company's stock worth $207,000 after purchasing an additional 2,385 shares during the last quarter. Vestmark Advisory Solutions Inc. bought a new position in CAE during the second quarter worth $236,000. Finally, PNC Financial Services Group Inc. lifted its stake in CAE by 11.1% during the second quarter. PNC Financial Services Group Inc. now owns 8,510 shares of the aerospace company's stock worth $249,000 after purchasing an additional 851 shares during the last quarter. 67.36% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Cibc World Mkts raised shares of CAE from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of CAE in a report on Monday, July 7th. TD Securities raised shares of CAE from a "hold" rating to a "buy" rating in a report on Wednesday, August 13th. Weiss Ratings reissued a "hold (c)" rating on shares of CAE in a research note on Wednesday, October 8th. Finally, The Goldman Sachs Group assumed coverage on shares of CAE in a research note on Monday, June 30th. They issued a "buy" rating and a $33.00 price target on the stock. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, CAE has a consensus rating of "Moderate Buy" and an average target price of $33.67.

About CAE

CAE Inc, together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions.

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