CECO Environmental (NASDAQ:CECO) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• CECO Environmental has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating.
• Despite the downgrade, several analysts have given the stock a "buy" rating with varying target prices, indicating mixed sentiment among analysts.
• Insider trading activity included significant sales by two directors, with one selling 70,000 shares, reflecting a 23.33% decrease in ownership for that director.

CECO Environmental (NASDAQ:CECO - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

Several other research analysts have also recently commented on CECO. Northland Securities set a $51.00 target price on shares of CECO Environmental in a research report on Wednesday, July 30th. HC Wainwright upped their target price on shares of CECO Environmental from $33.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, July 30th. Citigroup restated an "outperform" rating on shares of CECO Environmental in a research report on Wednesday, July 30th. Weiss Ratings restated a "buy (b-)" rating on shares of CECO Environmental in a research report on Saturday, September 27th. Finally, Needham & Company LLC upped their target price on shares of CECO Environmental from $44.00 to $52.00 and gave the stock a "buy" rating in a research report on Thursday, August 21st. Seven research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, CECO Environmental currently has a consensus rating of "Moderate Buy" and an average target price of $50.80.

CECO Environmental Price Performance

Shares of NASDAQ:CECO opened at $50.99 on Monday. The company has a quick ratio of 1.13, a current ratio of 1.34 and a debt-to-equity ratio of 0.78. CECO Environmental has a fifty-two week low of $17.57 and a fifty-two week high of $53.88. The firm has a 50-day simple moving average of $47.51 and a 200 day simple moving average of $33.65. The company has a market cap of $1.80 billion, a PE ratio of 35.66, a P/E/G ratio of 3.58 and a beta of 1.28.

CECO Environmental (NASDAQ:CECO - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.04. CECO Environmental had a net margin of 7.99% and a return on equity of 10.00%. The business had revenue of $185.39 million during the quarter, compared to the consensus estimate of $178.66 million. CECO Environmental has set its FY 2025 guidance at EPS. On average, sell-side analysts anticipate that CECO Environmental will post 0.67 EPS for the current year.

Insider Activity at CECO Environmental

In other news, Director Claudio A. Mannarino sold 20,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $41.51, for a total value of $830,200.00. Following the completion of the transaction, the director directly owned 77,589 shares in the company, valued at $3,220,719.39. This trade represents a 20.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Jason Dezwirek sold 70,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $42.75, for a total transaction of $2,992,500.00. Following the completion of the transaction, the director owned 230,000 shares of the company's stock, valued at $9,832,500. This trade represents a 23.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have acquired 7,500 shares of company stock valued at $339,915 and have sold 420,000 shares valued at $20,233,754. Corporate insiders own 16.90% of the company's stock.

Institutional Trading of CECO Environmental

Several institutional investors and hedge funds have recently added to or reduced their stakes in CECO. Farther Finance Advisors LLC lifted its stake in CECO Environmental by 224.7% during the second quarter. Farther Finance Advisors LLC now owns 1,445 shares of the company's stock valued at $41,000 after purchasing an additional 1,000 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in CECO Environmental during the second quarter valued at approximately $102,000. Canada Pension Plan Investment Board lifted its stake in CECO Environmental by 6,200.0% during the second quarter. Canada Pension Plan Investment Board now owns 6,300 shares of the company's stock valued at $178,000 after purchasing an additional 6,200 shares during the last quarter. Caption Management LLC acquired a new stake in CECO Environmental during the first quarter valued at approximately $182,000. Finally, Police & Firemen s Retirement System of New Jersey lifted its stake in CECO Environmental by 20.3% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 7,158 shares of the company's stock valued at $203,000 after purchasing an additional 1,210 shares during the last quarter. 68.08% of the stock is owned by institutional investors and hedge funds.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions.

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