Letko Brosseau & Associates Inc. Cuts Stock Holdings in CAE Inc (NYSE:CAE)

Key Points

• Letko Brosseau & Associates Inc. reduced its stake in CAE Inc by 16.9%, holding 3,384,874 shares after selling 690,605 shares in the first quarter, making CAE its 20th largest holding.
• CAE reported a quarterly earnings per share (EPS) of $0.33, exceeding the consensus estimate of $0.32, despite revenue falling below expectations at $886.20 million.
• Analysts have given CAE a consensus rating of "Moderate Buy" with an average price target of $33.67, and recent upgrades have shifted the stock ratings towards more favorable positions.

Letko Brosseau & Associates Inc. cut its holdings in CAE Inc (NYSE:CAE - Free Report) TSE: CAE by 16.9% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 3,384,874 shares of the aerospace company's stock after selling 690,605 shares during the quarter. CAE makes up 1.8% of Letko Brosseau & Associates Inc.'s holdings, making the stock its 20th biggest holding. Letko Brosseau & Associates Inc. owned approximately 1.06% of CAE worth $83,208,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in CAE. LPL Financial LLC lifted its stake in shares of CAE by 32.4% in the fourth quarter. LPL Financial LLC now owns 45,236 shares of the aerospace company's stock worth $1,148,000 after acquiring an additional 11,061 shares during the period. Vanguard Group Inc. grew its stake in shares of CAE by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 12,213,866 shares of the aerospace company's stock worth $310,134,000 after acquiring an additional 181,807 shares during the period. Korea Investment CORP raised its holdings in shares of CAE by 71.7% in the 4th quarter. Korea Investment CORP now owns 192,562 shares of the aerospace company's stock valued at $4,887,000 after acquiring an additional 80,400 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of CAE by 3.7% during the 4th quarter. JPMorgan Chase & Co. now owns 1,172,533 shares of the aerospace company's stock valued at $29,759,000 after buying an additional 42,325 shares in the last quarter. Finally, UniSuper Management Pty Ltd bought a new position in CAE during the 4th quarter worth approximately $147,000. 67.36% of the stock is owned by institutional investors and hedge funds.

CAE Price Performance

Shares of CAE stock traded up $0.03 during trading hours on Wednesday, reaching $28.58. The company had a trading volume of 341,391 shares, compared to its average volume of 601,722. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.58 and a current ratio of 0.80. The stock has a fifty day moving average of $27.64 and a 200-day moving average of $25.48. The company has a market capitalization of $9.16 billion, a price-to-earnings ratio of 31.76, a PEG ratio of 2.35 and a beta of 1.30. CAE Inc has a 12-month low of $15.95 and a 12-month high of $30.13.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last posted its quarterly earnings results on Tuesday, May 13th. The aerospace company reported $0.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.01. CAE had a return on equity of 8.17% and a net margin of 8.55%. The business had revenue of $886.20 million during the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the business earned $0.37 earnings per share. The business's revenue was up 13.2% compared to the same quarter last year. On average, equities analysts anticipate that CAE Inc will post 0.83 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on CAE shares. Jefferies Financial Group restated a "hold" rating and issued a $30.00 price target on shares of CAE in a research note on Monday, July 21st. Royal Bank Of Canada reissued a "sector perform" rating on shares of CAE in a research note on Monday, July 7th. The Goldman Sachs Group began coverage on CAE in a research report on Monday, June 30th. They set a "buy" rating and a $33.00 price objective on the stock. Cibc World Mkts upgraded CAE from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th. Finally, BMO Capital Markets restated an "outperform" rating on shares of CAE in a report on Wednesday, May 14th. Six equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $33.67.

CAE Company Profile

CAE Inc, together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions.