CECO Environmental (NASDAQ:CECO) Reaches New 1-Year High - Here's Why

Key Points

• CECO Environmental Corp. has reached a new 52-week high, trading at $50.41, with analysts increasing their target prices following strong quarterly earnings.
• Multiple analysts have given the company a consensus "Buy" rating and set an average price target of $50.80, with some analysts projecting targets as high as $56.00.
• Insider trading activity included significant stock sales by directors, which saw a 20.49% decrease in one director's holdings, raising concerns about insider sentiment.

CECO Environmental Corp. (NASDAQ:CECO - Get Free Report) shares reached a new 52-week high on Monday . The company traded as high as $50.41 and last traded at $50.16, with a volume of 92084 shares trading hands. The stock had previously closed at $48.13.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Lake Street Capital reaffirmed a "buy" rating and set a $56.00 price target on shares of CECO Environmental in a report on Wednesday, July 30th. Citigroup reiterated an "outperform" rating on shares of CECO Environmental in a research note on Wednesday, July 30th. Northland Securities set a $51.00 price objective on shares of CECO Environmental in a research note on Wednesday, July 30th. HC Wainwright increased their price objective on shares of CECO Environmental from $33.00 to $55.00 and gave the company a "buy" rating in a research note on Wednesday, July 30th. Finally, Needham & Company LLC increased their price objective on shares of CECO Environmental from $44.00 to $52.00 and gave the company a "buy" rating in a research note on Thursday, August 21st. Six research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $50.80.

CECO Environmental Stock Performance

The stock's 50-day moving average price is $43.26 and its 200-day moving average price is $31.34. The company has a current ratio of 1.34, a quick ratio of 1.13 and a debt-to-equity ratio of 0.78. The company has a market capitalization of $1.73 billion, a P/E ratio of 34.19, a P/E/G ratio of 2.98 and a beta of 1.32.

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

Insider Activity at CECO Environmental

In other news, Director Richard F. Wallman bought 3,000 shares of the firm's stock in a transaction on Friday, September 5th. The stock was bought at an average cost of $46.93 per share, for a total transaction of $140,790.00. Following the completion of the acquisition, the director directly owned 80,500 shares in the company, valued at $3,777,865. This represents a 3.87% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Claudio A. Mannarino sold 20,000 shares of the firm's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $41.51, for a total transaction of $830,200.00. Following the completion of the transaction, the director owned 77,589 shares of the company's stock, valued at approximately $3,220,719.39. The trade was a 20.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have bought 7,500 shares of company stock worth $339,915 and have sold 120,000 shares worth $5,128,900. 18.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Farther Finance Advisors LLC boosted its holdings in shares of CECO Environmental by 224.7% in the second quarter. Farther Finance Advisors LLC now owns 1,445 shares of the company's stock worth $41,000 after buying an additional 1,000 shares during the period. Mackenzie Financial Corp acquired a new stake in shares of CECO Environmental during the fourth quarter worth approximately $56,000. Heck Capital Advisors LLC acquired a new stake in shares of CECO Environmental during the fourth quarter worth approximately $74,000. Raymond James Financial Inc. acquired a new stake in shares of CECO Environmental during the second quarter worth approximately $102,000. Finally, Canada Pension Plan Investment Board boosted its holdings in shares of 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 worth $178,000 after purchasing an additional 6,200 shares during the period. 68.08% of the stock is currently 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.