Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) Stock Price Down 8.7% - Should You Sell?

Key Points

• EMBJ dropped 8.7% to $61.85 on Friday with roughly 650,849 shares traded—about half its average daily volume—after closing the prior session at $67.75.
• Analyst sentiment is mixed: six Buys, two Holds and one Sell produce a MarketBeat consensus of "Moderate Buy" with an average target of $64.43, though several firms have recently downgraded the stock.
• Key fundamentals include a $10.89 billion market cap, a P/E of 31.4, last quarter EPS of $0.46 on $2.65 billion revenue, and 50-/200-day moving averages of $63.81 and $66.65, respectively.

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ - Get Free Report) dropped 8.7% during trading on Friday . The company traded as low as $61.85 and last traded at $61.85. Approximately 650,849 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 1,314,904 shares. The stock had previously closed at $67.75.

Wall Street Analysts Forecast Growth

EMBJ has been the topic of a number of recent analyst reports. Wall Street Zen downgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. JPMorgan Chase & Co. increased their target price on shares of Embraer-Empresa Brasileira de Aeronautica from $80.00 to $84.00 and gave the company an "overweight" rating in a research report on Tuesday, March 10th. Weiss Ratings downgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, April 22nd. Finally, Zacks Research downgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, April 8th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $64.43.

Embraer-Empresa Brasileira de Aeronautica Price Performance

The company has a market cap of $10.89 billion, a price-to-earnings ratio of 31.40, a PEG ratio of 1.65 and a beta of 1.51. The company has a current ratio of 1.50, a quick ratio of 0.82 and a debt-to-equity ratio of 0.65. The company's 50 day moving average price is $63.81 and its 200 day moving average price is $66.65.

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ - Get Free Report) last released its earnings results on Saturday, February 14th. The aerospace company reported $0.46 EPS for the quarter. Embraer-Empresa Brasileira de Aeronautica had a net margin of 4.64% and a return on equity of 7.45%. The company had revenue of $2.65 billion during the quarter. Equities research analysts forecast that Embraer-Empresa Brasileira de Aeronautica will post 2.89 earnings per share for the current year.

Institutional Trading of Embraer-Empresa Brasileira de Aeronautica

Hedge funds have recently made changes to their positions in the company. SG Americas Securities LLC lifted its stake in shares of Embraer-Empresa Brasileira de Aeronautica by 283.3% in the 3rd quarter. SG Americas Securities LLC now owns 26,776 shares of the aerospace company's stock worth $1,619,000 after acquiring an additional 19,790 shares during the period. Brighton Jones LLC purchased a new stake in Embraer-Empresa Brasileira de Aeronautica during the fourth quarter worth about $502,000. Quent Capital LLC acquired a new position in Embraer-Empresa Brasileira de Aeronautica during the fourth quarter worth about $2,446,000. Burns Matteson Capital Management LLC acquired a new position in Embraer-Empresa Brasileira de Aeronautica during the fourth quarter worth about $641,000. Finally, Navellier & Associates Inc. acquired a new position in Embraer-Empresa Brasileira de Aeronautica during the fourth quarter worth about $5,264,000. Institutional investors and hedge funds own 34.65% of the company's stock.

Embraer-Empresa Brasileira de Aeronautica Company Profile

Embraer SA NYSE: EMBJ, legally known as Embraer – Empresa Brasileira de Aeronáutica SA, is a global aerospace company headquartered in São José dos Campos, Brazil. The company designs, develops, manufactures and sells commercial, executive, defence and agricultural aircraft. Embraer’s product portfolio includes the popular E-Jets family for regional and short-haul carriers, the advanced E2 series, a range of business jets under the Phenom, Legacy and Praetor brands, the A-29 Super Tucano military trainer and light attack aircraft, the C-390 Millennium multi-mission transport platform, and the Ipanema agricultural aircraft.

Embraer’s commercial aviation segment focuses on regional airlines and air taxi operators, offering aircraft that seat between 70 and 150 passengers.

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