CECO Environmental (NASDAQ:CECO) Stock Price Down 9.7% - Here's Why

Key Points

• CECO Environmental shares fell 9.7% to about $60.96 in heavy trading, significantly below the 50-day moving average of $85.17.
• Despite the sell-off, analysts remain broadly positive, with a consensus “Buy” rating and an average price target of $106.71; several firms recently raised targets above $110.
• The company’s latest results exceeded expectations, with quarterly EPS of $0.36 versus $0.12 expected and revenue up 16.5% year over year. Insider activity was mixed, as a director bought shares while the CFO sold 30,000 shares.

CECO Environmental Corp. (NASDAQ:CECO - Get Free Report)'s share price dropped 9.7% during mid-day trading on Wednesday . The company traded as low as $60.91 and last traded at $60.9610. Approximately 878,156 shares were traded during trading, an increase of 25% from the average daily volume of 703,502 shares. The stock had previously closed at $67.48.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CECO shares. Roth Capital restated a "buy" rating and issued a $85.00 price target on shares of CECO Environmental in a research report on Wednesday, April 29th. Needham & Company LLC lifted their target price on shares of CECO Environmental from $90.00 to $110.00 and gave the company a "buy" rating in a research note on Wednesday, June 10th. Zacks Research raised CECO Environmental from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 30th. Lake Street Capital boosted their target price on CECO Environmental from $80.00 to $111.00 and gave the stock a "buy" rating in a report on Wednesday, June 10th. Finally, Northland Securities set a $118.00 price target on CECO Environmental in a report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $106.71.

CECO Environmental Trading Down 8.1%

The company has a current ratio of 1.33, a quick ratio of 1.18 and a debt-to-equity ratio of 0.78. The stock has a market cap of $2.22 billion, a P/E ratio of 167.56 and a beta of 1.47. The business's fifty day simple moving average is $85.17 and its 200 day simple moving average is $73.42.

CECO Environmental (NASDAQ:CECO - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $0.36 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.24. CECO Environmental had a net margin of 1.70% and a return on equity of 13.69%. The company had revenue of $205.92 million during the quarter, compared to the consensus estimate of $198.88 million. During the same period in the previous year, the firm posted $0.10 earnings per share. The company's revenue was up 16.5% on a year-over-year basis. As a group, analysts expect that CECO Environmental Corp. will post 1.97 EPS for the current year.

Insider Buying and Selling

In other news, Director Richard F. Wallman acquired 20,000 shares of the firm's stock in a transaction on Monday, June 1st. The shares were purchased at an average cost of $76.85 per share, for a total transaction of $1,537,000.00. Following the transaction, the director owned 105,500 shares of the company's stock, valued at approximately $8,107,675. This represents a 23.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Peter K. Johansson sold 30,000 shares of CECO Environmental stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $96.49, for a total value of $2,894,700.00. Following the completion of the sale, the chief financial officer directly owned 40,746 shares of the company's stock, valued at $3,931,581.54. This trade represents a 42.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 16.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CECO Environmental

Several hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted its position in CECO Environmental by 71.6% during the 2nd quarter. GAMMA Investing LLC now owns 369 shares of the company's stock valued at $33,000 after purchasing an additional 154 shares during the period. Morton Brown Family Wealth LLC acquired a new stake in shares of CECO Environmental during the 1st quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of CECO Environmental during the third quarter worth approximately $25,000. Advisory Services Network LLC bought a new stake in shares of CECO Environmental during the third quarter worth approximately $31,000. Finally, KBC Group NV acquired a new position in CECO Environmental in the first quarter valued at approximately $44,000. Institutional investors own 68.08% of the company's stock.

CECO Environmental Company Profile

CECO Environmental Corp. NASDAQ: CECO is a global technology provider specializing in engineered solutions that help industrial and commercial customers manage air emissions, process fluids and optimize energy use. The company develops custom-engineered systems and modular packages designed to meet evolving environmental regulations and improve operational efficiency across diverse production processes.

CECO's core offerings include air pollution control equipment—such as scrubbers, cyclones, fabric and cartridge filters—and industrial process filtration systems for applications ranging from particulate removal to oil-water separation.

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