Letko Brosseau & Associates Inc. Sells 690,605 Shares of 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. reduced its stake in CAE Inc (NYSE:CAE - Free Report) TSE: CAE by 16.9% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,384,874 shares of the aerospace company's stock after selling 690,605 shares during the period. CAE accounts for approximately 1.8% of Letko Brosseau & Associates Inc.'s holdings, making the stock its 20th largest holding. Letko Brosseau & Associates Inc. owned about 1.06% of CAE worth $83,208,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in CAE. Natixis acquired a new stake in shares of CAE in the 4th quarter valued at about $38,000. Versant Capital Management Inc acquired a new stake in shares of CAE in the first quarter valued at about $53,000. UniSuper Management Pty Ltd acquired a new stake in shares of CAE in the fourth quarter valued at about $147,000. First Trust Advisors LP acquired a new stake in shares of CAE in the fourth quarter valued at about $213,000. Finally, Orion Portfolio Solutions LLC acquired a new stake in shares of CAE in the fourth quarter valued at about $225,000. Institutional investors and hedge funds own 67.36% of the company's stock.

CAE Stock Performance

CAE stock traded down $0.20 during mid-day trading on Friday, hitting $28.33. 458,574 shares of the company were exchanged, compared to its average volume of 591,083. The business has a 50 day simple moving average of $27.78 and a 200-day simple moving average of $25.54. The company has a current ratio of 0.80, a quick ratio of 0.58 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $9.08 billion, a PE ratio of 31.48, a price-to-earnings-growth ratio of 2.34 and a beta of 1.30. CAE Inc has a 1-year low of $15.95 and a 1-year high of $30.13.

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

Analysts Set New Price Targets

A number of analysts recently issued reports on CAE shares. BMO Capital Markets reaffirmed an "outperform" rating on shares of CAE in a research report on Wednesday, May 14th. Scotiabank raised CAE from a "sector perform" rating to a "sector outperform" rating in a research report on Thursday, May 15th. CIBC reiterated a "neutral" rating on shares of CAE in a report on Thursday, May 15th. National Bank Financial upgraded CAE from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 6th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating on shares of CAE in a report on Monday, July 7th. Six equities research analysts have rated the stock with a hold rating, five have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $33.67.

CAE 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.