CAE Inc (NYSE:CAE) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts give CAE a “Moderate Buy” consensus: Seven of 11 analysts rate the stock a buy, three a hold and one a sell; the average 12-month price target is $33.33.
• Quarterly results topped expectations: CAE reported EPS of $0.19 versus estimates of $0.17 and revenue of $826.42 million, up 6.8% year over year.
• Institutional investors own 67.36% of CAE shares, with several major funds recently establishing or increasing positions.

CAE Inc (NYSE:CAE - Get Free Report) TSE: CAE has been given a consensus rating of "Moderate Buy" by the eleven ratings firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and seven have issued a buy rating on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $33.33.

CAE has been the subject of a number of recent analyst reports. Morgan Stanley downgraded shares of CAE from an "equal weight" rating to an "underweight" rating in a research report on Wednesday, July 15th. Royal Bank Of Canada reissued an "outperform" rating on shares of CAE in a research report on Wednesday, October 28th. Weiss Ratings downgraded CAE from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, July 23rd. Jefferies Financial Group reduced their target price on CAE from $28.00 to $26.00 and set a "hold" rating for the company in a report on Tuesday, October 13th. Finally, Barclays started coverage on CAE in a research report on Friday, October 9th. They set an "overweight" rating and a $38.00 target price for the company.

CAE Stock Performance

CAE opened at $27.39 on Thursday. CAE has a 1-year low of $22.76 and a 1-year high of $34.24. The company has a market cap of $8.76 billion, a price-to-earnings ratio of 38.58, a PEG ratio of 2.85 and a beta of 1.06. The company's fifty day moving average price is $24.75 and its two-hundred day moving average price is $26.37. The company has a current ratio of 0.96, a quick ratio of 0.77 and a debt-to-equity ratio of 0.55.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last issued its quarterly earnings data on Wednesday, August 12th. The aerospace company reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.02. CAE had a net margin of 6.36% and a return on equity of 7.45%. The firm had revenue of $826.42 million during the quarter, compared to analysts' expectations of $796.86 million. During the same period last year, the company earned $0.21 earnings per share. The business's revenue was up 6.8% on a year-over-year basis. On average, analysts expect that CAE will post 0.87 EPS for the current fiscal year.

Institutional Trading of CAE

Several hedge funds have recently added to or reduced their stakes in the stock. Caisse de depot et placement du Quebec bought a new stake in CAE in the 2nd quarter valued at about $773,834,000. Jupiter Topco LLC purchased a new stake in shares of CAE during the second quarter worth $162,919,000. Letko Brosseau & Associates Inc. lifted its position in shares of CAE by 3.3% during the third quarter. Letko Brosseau & Associates Inc. now owns 4,114,202 shares of the aerospace company's stock worth $99,193,000 after acquiring an additional 132,370 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of CAE during the second quarter worth $65,215,000. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of CAE by 18.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,198,926 shares of the aerospace company's stock worth $57,273,000 after acquiring an additional 343,759 shares during the period. Institutional investors own 67.36% of the company's stock.

About CAE

CAE Inc. is a Canadian technology company that develops simulation and training solutions for the civil aviation and defense markets. Founded in 1947 and headquartered in Montreal, the company serves customers around the world. In civil aviation, CAE provides flight simulators, training devices, and pilot and crew training services to airlines, business aviation operators, aircraft manufacturers, and other aviation organizations. Its offerings support training across a range of aircraft types and operational needs.

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