Coronation Fund Managers Ltd. Takes Position in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ)

Key Points

• Coronation Fund Managers Ltd. acquired a new stake in Embraer by purchasing 440,873 shares valued at approximately $20.37 million, making it the firm's 25th largest position.
• Institutional investors such as Jennison Associates LLC and JPMorgan Chase & Co. significantly increased their stakes in Embraer during the first quarter, indicating heightened interest in the aerospace company.
• Despite a revenue of $1.82 billion, Embraer reported a loss of (0.02) earnings per share, missing analysts' expectations, while analysts predict a future earnings per share of 2.04 for the current year.

Coronation Fund Managers Ltd. purchased a new stake in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 440,873 shares of the aerospace company's stock, valued at approximately $20,368,000. Embraer-Empresa Brasileira de Aeronautica comprises about 1.1% of Coronation Fund Managers Ltd.'s investment portfolio, making the stock its 25th biggest position. Coronation Fund Managers Ltd. owned about 0.24% of Embraer-Empresa Brasileira de Aeronautica at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Robeco Institutional Asset Management B.V. raised its position in Embraer-Empresa Brasileira de Aeronautica by 1,057.8% in the 1st quarter. Robeco Institutional Asset Management B.V. now owns 212,054 shares of the aerospace company's stock valued at $9,797,000 after purchasing an additional 193,739 shares during the last quarter. Jennison Associates LLC raised its position in Embraer-Empresa Brasileira de Aeronautica by 215.7% in the 1st quarter. Jennison Associates LLC now owns 4,126,160 shares of the aerospace company's stock valued at $190,629,000 after purchasing an additional 2,819,306 shares during the last quarter. Quantinno Capital Management LP purchased a new stake in Embraer-Empresa Brasileira de Aeronautica in the 4th quarter valued at $227,000. Janney Montgomery Scott LLC purchased a new stake in Embraer-Empresa Brasileira de Aeronautica in the 1st quarter valued at $249,000. Finally, Diversify Wealth Management LLC raised its position in Embraer-Empresa Brasileira de Aeronautica by 13.0% in the 1st quarter. Diversify Wealth Management LLC now owns 43,950 shares of the aerospace company's stock valued at $2,004,000 after purchasing an additional 5,061 shares during the last quarter. Hedge funds and other institutional investors own 34.65% of the company's stock.

Embraer-Empresa Brasileira de Aeronautica Price Performance

Shares of ERJ traded up $0.99 during trading hours on Tuesday, reaching $58.76. The company had a trading volume of 937,440 shares, compared to its average volume of 2,733,817. The firm has a 50 day simple moving average of $53.37 and a 200-day simple moving average of $48.51. 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 company has a market capitalization of $10.79 billion, a price-to-earnings ratio of 28.66 and a beta of 1.76. Embraer-Empresa Brasileira de Aeronautica has a 12-month low of $31.76 and a 12-month high of $61.65.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The aerospace company reported ($0.02) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.47 by ($0.49). The company had revenue of $1.82 billion during the quarter, compared to analysts' expectations of $1.67 billion. Embraer-Empresa Brasileira de Aeronautica had a net margin of 5.43% and a return on equity of 13.38%. During the same quarter in the prior year, the business earned $0.44 EPS. Research analysts expect that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current year.

Analyst Upgrades and Downgrades

ERJ has been the subject of several research reports. HSBC upgraded shares of 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 research report on Wednesday, June 4th. UBS Group restated a "sell" rating and set a $39.00 price objective (up previously from $35.00) on shares of Embraer-Empresa Brasileira de Aeronautica in a research report on Thursday, April 24th. Hsbc Global Res upgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, June 4th. Wolfe Research upgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "peer perform" rating to an "outperform" rating and set a $64.00 price objective for the company in a research report on Thursday, July 31st. Finally, The Goldman Sachs Group upped their price objective on shares of Embraer-Empresa Brasileira de Aeronautica from $60.00 to $67.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. One analyst has rated the stock with a sell rating, one has assigned a hold rating, four have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, Embraer-Empresa Brasileira de Aeronautica currently has an average rating of "Moderate Buy" and a consensus target price of $53.83.

About Embraer-Empresa Brasileira de Aeronautica

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.