Select Equity Group L.P. Acquires 1,122,470 Shares of CAE Inc $CAE

Key Points

• Select Equity Group L.P. has increased its stake in CAE Inc by 16.7%, raising its total ownership to 7,863,984 shares valued at $193.3 million as per its latest SEC filing.
• Several other institutional investors, including Cetera Investment Advisers and Canada Pension Plan Investment Board, have also significantly increased their stakes in CAE, indicating a strong interest from hedge funds.
• CAE reported an earnings per share of $0.15 for the recent quarter, matching analyst expectations, with revenue reaching $806.92 million, below consensus estimates of $1.12 billion.

Select Equity Group L.P. increased its stake in shares of CAE Inc (NYSE:CAE - Free Report) TSE: CAE by 16.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,863,984 shares of the aerospace company's stock after purchasing an additional 1,122,470 shares during the quarter. Select Equity Group L.P. owned approximately 2.46% of CAE worth $193,314,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in CAE. Nomura Holdings Inc. acquired a new position in CAE during the 4th quarter worth approximately $201,771,000. Browning West LP raised its stake in shares of CAE by 131.4% during the first quarter. Browning West LP now owns 13,734,943 shares of the aerospace company's stock valued at $337,742,000 after acquiring an additional 7,800,012 shares during the last quarter. JARISLOWSKY FRASER Ltd raised its stake in shares of CAE by 7.6% during the fourth quarter. JARISLOWSKY FRASER Ltd now owns 23,994,091 shares of the aerospace company's stock valued at $606,697,000 after acquiring an additional 1,702,904 shares during the last quarter. Bank of America Corp DE raised its stake in shares of CAE by 195.3% during the fourth quarter. Bank of America Corp DE now owns 2,350,178 shares of the aerospace company's stock valued at $59,648,000 after acquiring an additional 1,554,266 shares during the last quarter. Finally, National Bank of Canada FI raised its stake in shares of CAE by 15.6% during the first quarter. National Bank of Canada FI now owns 6,087,650 shares of the aerospace company's stock valued at $149,530,000 after acquiring an additional 822,037 shares during the last quarter. 67.36% of the stock is currently owned by institutional investors and hedge funds.

CAE Stock Down 1.7%

Shares of NYSE:CAE traded down $0.45 during midday trading on Tuesday, hitting $26.20. 371,675 shares of the company's stock were exchanged, compared to its average volume of 695,476. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.87 and a quick ratio of 0.60. The stock has a 50 day moving average price of $28.26 and a 200-day moving average price of $26.13. The company has a market cap of $8.40 billion, a PE ratio of 28.48, a price-to-earnings-growth ratio of 2.36 and a beta of 1.36. CAE Inc has a 12 month low of $17.48 and a 12 month high of $30.13.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last posted its earnings results on Tuesday, August 12th. The aerospace company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15. The company had revenue of $806.92 million during the quarter, compared to the consensus estimate of $1.12 billion. CAE had a net margin of 8.70% and a return on equity of 7.92%. During the same period in the previous year, the firm posted $0.21 earnings per share. On average, sell-side analysts anticipate that CAE Inc will post 0.83 EPS for the current fiscal year.

Wall Street Analyst Weigh In

CAE has been the subject of several analyst reports. Wall Street Zen downgraded shares of CAE from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Scotiabank reaffirmed an "outperform" rating on shares of CAE in a research note on Thursday, August 14th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of CAE in a research note on Monday, July 7th. Cibc World Mkts raised shares of CAE from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 27th. Finally, BMO Capital Markets reaffirmed an "outperform" rating on shares of CAE in a research note on Wednesday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus 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.