RWC Asset Management LLP Buys New Stake in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ)

Key Points

• RWC Asset Management LLP has invested approximately $5.25 million in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ), acquiring 113,583 shares in the first quarter.
• Other institutional investors, including Jennison Associates LLC and Invesco Ltd., have significantly increased their stakes in Embraer, indicating growing confidence in the aerospace company.
• Embraer reported a 23% increase in revenue year-over-year, with earnings per share of $0.40, surpassing analyst estimates of $0.21.

RWC Asset Management LLP bought a new stake in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 113,583 shares of the aerospace company's stock, valued at approximately $5,248,000. RWC Asset Management LLP owned approximately 0.06% of Embraer-Empresa Brasileira de Aeronautica as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Jennison Associates LLC increased its stake in shares of Embraer-Empresa Brasileira de Aeronautica by 215.7% in the first 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 period. Invesco Ltd. grew its holdings in Embraer-Empresa Brasileira de Aeronautica by 17,140.6% during the fourth quarter. Invesco Ltd. now owns 1,235,635 shares of the aerospace company's stock worth $45,323,000 after acquiring an additional 1,228,468 shares during the period. Ameriprise Financial Inc. raised its position in Embraer-Empresa Brasileira de Aeronautica by 902.5% in the fourth quarter. Ameriprise Financial Inc. now owns 587,066 shares of the aerospace company's stock worth $21,534,000 after acquiring an additional 528,508 shares in the last quarter. RWC Asset Advisors US LLC acquired a new stake in Embraer-Empresa Brasileira de Aeronautica in the 1st quarter valued at about $19,313,000. Finally, AQR Capital Management LLC boosted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 104.4% during the 4th quarter. AQR Capital Management LLC now owns 795,528 shares of the aerospace company's stock valued at $28,909,000 after purchasing an additional 406,384 shares in the last quarter. Institutional investors and hedge funds own 34.65% of the company's stock.

Analysts Set New Price Targets

Several analysts recently commented on ERJ shares. UBS Group reissued a "sell" rating and set a $39.00 target price (up from $35.00) on shares of Embraer-Empresa Brasileira de Aeronautica in a research note on Thursday, April 24th. HSBC upgraded Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and lifted their target price for the stock from $45.00 to $57.00 in a report on Wednesday, June 4th. Hsbc Global Res raised shares of 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 upped their price target on shares of Embraer-Empresa Brasileira de Aeronautica from $54.00 to $60.00 and gave the company a "buy" rating in a research report on Monday, May 12th. One analyst has rated the stock with a sell rating, two have assigned a hold rating, three have assigned a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat, Embraer-Empresa Brasileira de Aeronautica has an average rating of "Moderate Buy" and an average price target of $50.40.

Embraer-Empresa Brasileira de Aeronautica Stock Up 4.7%

Embraer-Empresa Brasileira de Aeronautica stock traded up $2.20 during trading hours on Tuesday, hitting $49.59. The company had a trading volume of 2,942,099 shares, compared to its average volume of 2,210,244. The firm's fifty day moving average is $51.30 and its 200-day moving average is $47.28. The firm has a market capitalization of $9.11 billion, a P/E ratio of 22.96 and a beta of 1.72. Embraer-Empresa Brasileira de Aeronautica has a fifty-two week low of $26.04 and a fifty-two week high of $61.65. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.32 and a quick ratio of 0.59.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.17 billion. Embraer-Empresa Brasileira de Aeronautica had a return on equity of 16.43% and a net margin of 6.02%. Embraer-Empresa Brasileira de Aeronautica's quarterly revenue was up 23.0% compared to the same quarter last year. During the same period last year, the company earned ($0.48) earnings per share. On average, research analysts forecast that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current year.

Embraer-Empresa Brasileira de Aeronautica Dividend Announcement

The business also recently disclosed a -- dividend, which was paid on Monday, June 2nd. Stockholders of record on Friday, May 16th were issued a dividend of $0.049 per share. The ex-dividend date was Friday, May 16th. Embraer-Empresa Brasileira de Aeronautica's payout ratio is 2.31%.

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.