RWC Asset Advisors US LLC Makes New $19.31 Million Investment in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ)

Key Points

• RWC Asset Advisors US LLC has acquired a new stake in Embraer, purchasing 418,035 shares valued at approximately $19.31 million, making it the company's 9th largest position.
• Embraer's recent earnings report showed an EPS of $0.40, exceeding analysts' expectations, and a significant year-over-year revenue increase of 23.0%.
• Several analysts have upgraded Embraer’s stock ratings, with HSBC raising its price target from $45.00 to $57.00, suggesting a positive outlook for the company's future performance.

RWC Asset Advisors US LLC purchased a new stake in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 418,035 shares of the aerospace company's stock, valued at approximately $19,313,000. Embraer-Empresa Brasileira de Aeronautica makes up 3.5% of RWC Asset Advisors US LLC's portfolio, making the stock its 9th largest holding. RWC Asset Advisors US LLC owned 0.23% of Embraer-Empresa Brasileira de Aeronautica at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Zweig DiMenna Associates LLC purchased a new position in shares of Embraer-Empresa Brasileira de Aeronautica in the 1st quarter worth about $7,123,000. Pinnacle Associates Ltd. raised its position in shares of Embraer-Empresa Brasileira de Aeronautica by 1.9% in the 1st quarter. Pinnacle Associates Ltd. now owns 60,334 shares of the aerospace company's stock worth $2,787,000 after purchasing an additional 1,129 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new position in shares of Embraer-Empresa Brasileira de Aeronautica in the 1st quarter worth about $1,798,000. Diversify Advisory Services LLC raised its position in shares of Embraer-Empresa Brasileira de Aeronautica by 33.3% in the 1st quarter. Diversify Advisory Services LLC now owns 12,569 shares of the aerospace company's stock worth $573,000 after purchasing an additional 3,141 shares during the last quarter. Finally, Jennison Associates LLC raised its position in shares of 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 worth $190,629,000 after purchasing an additional 2,819,306 shares during the last quarter. Institutional investors own 34.65% of the company's stock.

Embraer-Empresa Brasileira de Aeronautica Stock Performance

Shares of Embraer-Empresa Brasileira de Aeronautica stock traded up $2.20 during trading hours on Tuesday, reaching $49.59. 2,921,171 shares of the stock traded hands, compared to its average volume of 1,685,369. The company has a 50 day moving average price of $51.29 and a 200 day moving average price of $47.26. The firm has a market capitalization of $9.11 billion, a price-to-earnings ratio of 22.96 and a beta of 1.72. Embraer-Empresa Brasileira de Aeronautica has a one year low of $26.04 and a one year high of $61.65. The company has a quick ratio of 0.59, a current ratio of 1.32 and a debt-to-equity ratio of 0.56.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last released its earnings results on Tuesday, May 6th. The aerospace company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.19. The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.17 billion. Embraer-Empresa Brasileira de Aeronautica had a net margin of 6.02% and a return on equity of 16.43%. The firm's quarterly revenue was up 23.0% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.48) EPS. On average, equities research analysts expect that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current fiscal year.

Embraer-Empresa Brasileira de Aeronautica Announces Dividend

The company also recently announced a -- dividend, which was paid on Monday, June 2nd. Investors of record on Friday, May 16th were issued a $0.049 dividend. The ex-dividend date of this dividend was Friday, May 16th. Embraer-Empresa Brasileira de Aeronautica's dividend payout ratio is 1.85%.

Wall Street Analysts Forecast Growth

ERJ has been the subject of several recent analyst reports. HSBC raised Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and lifted their price target for the stock from $45.00 to $57.00 in a research report on Wednesday, June 4th. UBS Group reissued a "sell" rating and issued a $39.00 target price (up previously from $35.00) on shares of Embraer-Empresa Brasileira de Aeronautica in a research report on Thursday, April 24th. Hsbc Global Res raised Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, June 4th. Finally, The Goldman Sachs Group boosted their target price on Embraer-Empresa Brasileira de Aeronautica from $54.00 to $60.00 and gave the stock a "buy" rating in a research report on Monday, May 12th. One analyst has rated the stock with a sell rating, two have given a hold rating, three have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $50.40.

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.