Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) Stock Price Down 5.4% - Here's What Happened

Key Points

• Embraer-Empresa Brasileira de Aeronautica saw a significant 5.4% drop in stock price during Friday's trading, closing at $56.58 after trading as low as $56.60.
• Analysts have mixed opinions with some upgrades, including a price target increase by HSBC from $45.00 to $57.00, while UBS Group maintained a "sell" rating with a target of $44.00.
• The company recently reported quarterly earnings that missed estimates, with a loss of $0.02 per share compared to the expected $0.47, although revenue surpassed forecasts at $1.82 billion.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report)'s share price dropped 5.4% during trading on Friday . The stock traded as low as $56.60 and last traded at $56.58. Approximately 648,341 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 1,774,730 shares. The stock had previously closed at $59.78.

Analyst Upgrades and Downgrades

ERJ has been the subject of several recent research reports. Zacks Research cut Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong sell" rating in a report on Friday, August 15th. Hsbc Global Res raised Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a report on Wednesday, June 4th. UBS Group upped their price target on Embraer-Empresa Brasileira de Aeronautica from $39.00 to $44.00 and gave the company a "sell" rating in a report on Friday, August 15th. The Goldman Sachs Group upped their price target on 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 raised Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and upped their price target for the company from $45.00 to $57.00 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 and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Embraer-Empresa Brasileira de Aeronautica has an average rating of "Moderate Buy" and a consensus target price of $54.67.

Embraer-Empresa Brasileira de Aeronautica Stock Performance

The company has a market capitalization of $10.07 billion, a P/E ratio of 26.80 and a beta of 1.76. The firm has a 50 day moving average price of $54.41 and a two-hundred day moving average price of $49.11. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.60 and a current ratio of 1.33.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The aerospace company reported ($0.02) earnings per share for the quarter, missing the consensus estimate 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 the consensus estimate of $1.67 billion. During the same quarter in the prior year, the company posted $0.44 earnings per share. Embraer-Empresa Brasileira de Aeronautica has set its FY 2025 guidance at EPS. On average, research analysts expect that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Embraer-Empresa Brasileira de Aeronautica

Large investors have recently bought and sold shares of the business. WPG Advisers LLC bought a new stake in Embraer-Empresa Brasileira de Aeronautica during the 1st quarter worth approximately $25,000. Colonial Trust Co SC bought a new stake in Embraer-Empresa Brasileira de Aeronautica during the 4th quarter worth approximately $42,000. Jones Financial Companies Lllp grew its position in 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 acquiring an additional 747 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in 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 acquiring an additional 1,249 shares during the last quarter. Finally, First Horizon Advisors Inc. grew its position in Embraer-Empresa Brasileira de Aeronautica by 1,608.7% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,170 shares of the aerospace company's stock worth $123,000 after acquiring an additional 2,043 shares during the last quarter. 34.65% of the stock is currently owned by institutional investors.

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.