Select Equity Group L.P. Boosts Holdings in 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. lifted its holdings in CAE Inc (NYSE:CAE - Free Report) TSE: CAE by 16.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 7,863,984 shares of the aerospace company's stock after acquiring an additional 1,122,470 shares during the period. Select Equity Group L.P. owned 2.46% of CAE worth $193,314,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of the stock. Cetera Investment Advisers lifted its stake in CAE by 49.7% in the first quarter. Cetera Investment Advisers now owns 17,045 shares of the aerospace company's stock worth $419,000 after purchasing an additional 5,659 shares during the last quarter. Sequoia Financial Advisors LLC lifted its stake in CAE by 132.4% in the first quarter. Sequoia Financial Advisors LLC now owns 49,556 shares of the aerospace company's stock worth $1,219,000 after purchasing an additional 28,237 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of CAE during the first quarter worth $11,365,000. National Bank of Canada FI lifted its position 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 worth $149,530,000 after purchasing an additional 822,037 shares during the last quarter. Finally, Canada Pension Plan Investment Board lifted its position in shares of CAE by 61.4% during the first quarter. Canada Pension Plan Investment Board now owns 1,684,174 shares of the aerospace company's stock worth $41,413,000 after purchasing an additional 640,678 shares during the last quarter. Institutional investors own 67.36% of the company's stock.

Wall Street Analysts Forecast Growth

CAE has been the subject of several research analyst reports. Jefferies Financial Group reaffirmed a "hold" rating and set a $30.00 price target on shares of CAE in a research note on Monday, July 21st. Wall Street Zen cut CAE from a "buy" rating to a "hold" rating in a research report on Saturday, August 16th. The Goldman Sachs Group assumed coverage on CAE in a research report on Monday, June 30th. They issued a "buy" rating and a $33.00 price objective for the company. Cibc World Mkts raised CAE from a "hold" rating to a "strong-buy" rating in a research report on Friday, June 27th. Finally, CIBC reissued a "neutral" rating on shares of CAE in a research report on Thursday, May 15th. Two 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. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $33.67.

CAE Price Performance

Shares of CAE traded down $0.21 during mid-day trading on Friday, hitting $26.47. 109,496 shares of the company were exchanged, compared to its average volume of 567,905. CAE Inc has a 1-year low of $17.48 and a 1-year high of $30.13. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.60 and a current ratio of 0.87. The company has a 50 day moving average of $28.13 and a 200-day moving average of $26.15. The stock has a market cap of $8.49 billion, a price-to-earnings ratio of 28.76, a price-to-earnings-growth ratio of 2.33 and a beta of 1.36.

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

About CAE

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.