Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) Stock Price Up 10.7% - Should You Buy?

Key Points

• Embraer-Empresa Brasileira de Aeronautica shares surged by 10.7%, trading as high as $56.43, with a significant increase in trading volume of 144% from its average.
• Multiple analysts have issued mixed ratings for the stock, with Goldman Sachs upgrading its target price to $60.00 while UBS Group maintains a sell rating at $39.00.
• The company reported $1.10 billion in revenue for the last quarter, reflecting a 23% year-over-year increase, along with an EPS of $0.40, exceeding estimates by $0.19.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report)'s stock price traded up 10.7% during mid-day trading on Wednesday . The stock traded as high as $56.43 and last traded at $54.93. 4,115,909 shares changed hands during trading, an increase of 144% from the average session volume of 1,686,980 shares. The stock had previously closed at $49.60.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. The Goldman Sachs Group upped their price target on shares of Embraer-Empresa Brasileira de Aeronautica from $54.00 to $60.00 and gave the stock a "buy" rating in a report on Monday, May 12th. Hsbc Global Res upgraded Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a report on Wednesday, June 4th. UBS Group reiterated a "sell" rating and set a $39.00 price target (up from $35.00) on shares of Embraer-Empresa Brasileira de Aeronautica in a report on Thursday, April 24th. HSBC raised shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and increased their price objective for the stock from $45.00 to $57.00 in a research report on Wednesday, June 4th. Finally, Wolfe Research raised shares of Embraer-Empresa Brasileira de Aeronautica from a "peer perform" rating to an "outperform" rating and set a $64.00 price objective on the stock in a research report on Thursday. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, four have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, Embraer-Empresa Brasileira de Aeronautica currently has an average rating of "Moderate Buy" and a consensus price target of $52.67.

Embraer-Empresa Brasileira de Aeronautica Stock Performance

The firm has a market cap of $10.51 billion, a P/E ratio of 26.45 and a beta of 1.72. The company has a current ratio of 1.32, a quick ratio of 0.59 and a debt-to-equity ratio of 0.56. The company's 50-day moving average is $51.65 and its two-hundred day moving average is $47.47.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The aerospace company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.19. Embraer-Empresa Brasileira de Aeronautica had a net margin of 6.02% and a return on equity of 16.43%. The business had revenue of $1.10 billion for the quarter, compared to analysts' expectations of $1.17 billion. During the same quarter last year, the firm earned ($0.48) EPS. The firm's revenue for the quarter was up 23.0% compared to the same quarter last year. As a group, equities analysts predict that Embraer-Empresa Brasileira de Aeronautica will post 2.04 EPS for the current fiscal year.

Embraer-Empresa Brasileira de Aeronautica Announces Dividend

The company also recently announced a -- dividend, which was paid on Monday, June 2nd. Shareholders of record on Friday, May 16th were given a dividend of $0.049 per share. The ex-dividend date of this dividend was Friday, May 16th. Embraer-Empresa Brasileira de Aeronautica's dividend payout ratio (DPR) is currently 1.85%.

Hedge Funds Weigh In On Embraer-Empresa Brasileira de Aeronautica

Several hedge funds have recently modified their holdings of ERJ. WPG Advisers LLC bought a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the 1st quarter worth approximately $25,000. Colonial Trust Co SC bought a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the 4th quarter worth approximately $42,000. Jones Financial Companies Lllp lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 98.2% during the 1st quarter. Jones Financial Companies Lllp now owns 1,508 shares of the aerospace company's stock worth $70,000 after buying an additional 747 shares in the last quarter. Edmond DE Rothschild Holding S.A. lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 71.9% during the 4th quarter. Edmond DE Rothschild Holding S.A. now owns 1,934 shares of the aerospace company's stock worth $71,000 after buying an additional 809 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 241.6% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 1,766 shares of the aerospace company's stock worth $82,000 after buying an additional 1,249 shares in the last quarter. Institutional investors own 34.65% of the company's stock.

Embraer-Empresa Brasileira de Aeronautica Company Profile

Embraer SA designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft.