CAE (NYSE:CAE) Shares Gap Down - Here's Why

Key Points

• CAE Inc shares experienced a significant drop, opening at $27.71 after closing at $29.54, marking a decline of approximately 5.9%.
• Despite the drop, CAE received several upgrades from analysts, with Cibc World Mkts changing its rating to a "strong-buy" and a consensus target price of $33.67.
• The company reported earnings of $0.33 per share for the last quarter, surpassing analysts’ expectations, while quarterly revenue grew by 13.2% year-over-year.

CAE Inc (NYSE:CAE - Get Free Report) TSE: CAE shares gapped down before the market opened on Wednesday . The stock had previously closed at $29.54, but opened at $27.71. CAE shares last traded at $27.32, with a volume of 415,336 shares.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on CAE. Wall Street Zen downgraded shares of CAE from a "buy" rating to a "hold" rating in a report on Saturday. Scotiabank reiterated an "outperform" rating on shares of CAE in a research report on Thursday. Royal Bank Of Canada restated a "sector perform" rating on shares of CAE in a research report on Monday, July 7th. CIBC reissued a "neutral" rating on shares of CAE in a research note on Thursday, May 15th. Finally, The Goldman Sachs Group assumed coverage on CAE in a research note on Monday, June 30th. They issued a "buy" rating and a $33.00 price target for the company. Five investment analysts have rated the stock with a hold rating, five have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $33.67.

CAE Trading Up 1.2%

The stock's fifty day simple moving average is $28.32 and its 200 day simple moving average is $25.86. The firm has a market capitalization of $8.92 billion, a PE ratio of 30.23, a PEG ratio of 2.29 and a beta of 1.34. The company has a quick ratio of 0.60, a current ratio of 0.87 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 analysts' consensus estimates of $0.15. CAE had a return on equity of 7.92% and a net margin of 8.70%. The company had revenue of $806.92 million during the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the previous year, the company posted $0.21 EPS. On average, sell-side analysts predict that CAE Inc will post 0.83 earnings per share for the current year.

Institutional Trading of CAE

Hedge funds and other institutional investors have recently bought and sold shares of the business. LPL Financial LLC increased its stake in shares of CAE by 32.4% during the fourth quarter. LPL Financial LLC now owns 45,236 shares of the aerospace company's stock valued at $1,148,000 after buying an additional 11,061 shares during the period. Envestnet Asset Management Inc. raised its position in CAE by 2.1% during the fourth quarter. Envestnet Asset Management Inc. now owns 246,903 shares of the aerospace company's stock valued at $6,266,000 after acquiring an additional 5,188 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in shares of CAE in the fourth quarter valued at approximately $4,746,000. Barclays PLC boosted its stake in CAE by 269.0% during the fourth quarter. Barclays PLC now owns 27,544 shares of the aerospace company's stock worth $699,000 after buying an additional 20,080 shares during the last quarter. Finally, Canada Pension Plan Investment Board lifted its stake in shares of CAE by 1.0% in the 4th quarter. Canada Pension Plan Investment Board now owns 1,043,496 shares of the aerospace company's stock valued at $26,463,000 after purchasing an additional 10,200 shares during the last quarter. Hedge funds and other institutional investors own 67.36% of the company's stock.

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.