Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) Short Interest Down 35.5% in August

Key Points

• Short interest in Embraer declined by 35.5% in August, dropping from 5.5 million shares to 3.55 million shares, representing 1.9% of the company's shares sold short.
• The company's recent quarterly earnings report showed an EPS loss of $0.02, missing analysts' expectations of $0.47, while revenues were reported at $1.82 billion, surpassing forecasts of $1.67 billion.
• Analysts have mixed ratings on Embraer, with a consensus rating of "Moderate Buy" and an average price target of $59.40; several firms have upgraded their ratings recently.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) was the recipient of a large decline in short interest in August. As of August 31st, there was short interest totaling 3,550,000 shares, a decline of 35.5% from the August 15th total of 5,500,000 shares. Approximately 1.9% of the shares of the company are short sold. Based on an average daily volume of 2,020,000 shares, the days-to-cover ratio is currently 1.8 days. Based on an average daily volume of 2,020,000 shares, the days-to-cover ratio is currently 1.8 days. Approximately 1.9% of the shares of the company are short sold.

Embraer-Empresa Brasileira de Aeronautica Trading Up 0.3%

NYSE ERJ traded up $0.16 during trading hours on Friday, reaching $57.48. The company had a trading volume of 477,060 shares, compared to its average volume of 1,722,680. The stock has a 50-day moving average of $55.60 and a 200 day moving average of $51.24. Embraer-Empresa Brasileira de Aeronautica has a 1-year low of $32.26 and a 1-year high of $62.09. The company has a current ratio of 1.33, a quick ratio of 0.60 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $10.56 billion, a P/E ratio of 28.03 and a beta of 1.87.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last posted its earnings results on Tuesday, August 5th. The aerospace company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of $0.47 by ($0.49). Embraer-Empresa Brasileira de Aeronautica had a net margin of 5.43% and a return on equity of 13.38%. The company had revenue of $1.82 billion during the quarter, compared to analyst estimates of $1.67 billion. During the same period in the previous year, the company earned $0.44 EPS. Embraer-Empresa Brasileira de Aeronautica has set its FY 2025 guidance at EPS. As a group, research analysts anticipate that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Embraer-Empresa Brasileira de Aeronautica from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. HSBC raised shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and lifted their target price for the company from $45.00 to $57.00 in a report on Wednesday, June 4th. Wolfe Research raised shares of Embraer-Empresa Brasileira de Aeronautica from a "peer perform" rating to an "outperform" rating and set a $64.00 target price for the company in a report on Thursday, July 31st. The Goldman Sachs Group lifted their target price on shares of Embraer-Empresa Brasileira de Aeronautica from $60.00 to $67.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Finally, Hsbc Global Res raised shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a report on Wednesday, June 4th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $59.40.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. GQG Partners LLC acquired a new stake in shares of Embraer-Empresa Brasileira de Aeronautica during the first quarter worth about $276,246,000. JPMorgan Chase & Co. lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 654.5% during the first quarter. JPMorgan Chase & Co. now owns 3,500,799 shares of the aerospace company's stock worth $161,737,000 after purchasing an additional 3,036,797 shares in the last quarter. Jennison Associates LLC lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 215.7% during the first quarter. Jennison Associates LLC now owns 4,126,160 shares of the aerospace company's stock worth $190,629,000 after purchasing an additional 2,819,306 shares in the last quarter. Nuveen LLC acquired a new stake in shares of Embraer-Empresa Brasileira de Aeronautica during the first quarter worth about $84,931,000. Finally, Invesco Ltd. lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 116.8% during the first quarter. Invesco Ltd. now owns 2,678,821 shares of the aerospace company's stock worth $123,762,000 after purchasing an additional 1,443,186 shares in the last quarter. Institutional investors and hedge funds 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.