CAE (TSE:CAE) Stock Price Passes Below 200-Day Moving Average - What's Next?

Key Points

• CAE shares fell below their 200-day moving average for the first time in this move, trading as low as C$35.01 and last changing hands at C$35.24, down about 2.9% on the day.
• Despite the weakness, analysts remain mostly positive: ten analysts rate the stock a Buy, with an average price target of C$48.91, though several firms have recently trimmed their targets.
• Recent fundamentals showed quarterly EPS of C$0.42 on C$1.33 billion in revenue, while insider activity included notable share sales by a director and another insider over the past quarter.

CAE Inc. (TSE:CAE - Get Free Report) NYSE: CAE's share price passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of C$38.74 and traded as low as C$35.01. CAE shares last traded at C$35.24, with a volume of 1,383,510 shares changing hands.

Analysts Set New Price Targets

CAE has been the subject of a number of research reports. Canaccord Genuity Group boosted their target price on shares of CAE from C$49.00 to C$50.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. TD dropped their price target on CAE from C$49.00 to C$43.00 and set a "buy" rating on the stock in a research note on Monday, May 25th. Stifel Nicolaus cut their price objective on CAE from C$50.00 to C$47.00 and set a "buy" rating for the company in a report on Tuesday, May 26th. TD Securities reduced their price objective on CAE from C$54.00 to C$53.00 and set a "buy" rating for the company in a research report on Tuesday, March 24th. Finally, National Bank Financial lowered their target price on CAE from C$53.00 to C$49.00 and set an "outperform" rating on the stock in a report on Monday, May 25th. Ten research analysts have rated the stock with a Buy rating, According to MarketBeat, CAE currently has an average rating of "Buy" and an average price target of C$48.91.

CAE Stock Down 2.9%

The company has a 50-day moving average of C$35.63 and a two-hundred day moving average of C$38.74. The company has a debt-to-equity ratio of 60.97, a current ratio of 0.96 and a quick ratio of 0.71. The company has a market capitalization of C$11.33 billion, a PE ratio of 36.33, a P/E/G ratio of 1.76 and a beta of 0.57.

CAE (TSE:CAE - Get Free Report) NYSE: CAE last posted its quarterly earnings data on Thursday, May 21st. The company reported C$0.42 EPS for the quarter. CAE had a return on equity of 6.12% and a net margin of 6.37%.The firm had revenue of C$1.33 billion for the quarter.

Insiders Place Their Bets

In related news, Director Matthew Bromberg sold 64,710 shares of the company's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of C$35.60, for a total value of C$2,303,676.00. Following the completion of the transaction, the director owned 46,915 shares of the company's stock, valued at approximately C$1,670,174. This represents a 57.97% decrease in their position. Also, insider Hélène Violaine Gagnon sold 2,062 shares of the business's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of C$35.39, for a total value of C$72,974.18. Following the completion of the transaction, the insider owned 17,231 shares in the company, valued at C$609,805.09. The trade was a 10.69% decrease in their ownership of the stock. Over the last quarter, insiders sold 87,975 shares of company stock valued at $3,127,182. Insiders own 0.15% of the company's stock.

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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