Zweig DiMenna Associates LLC Makes New $7.12 Million Investment in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ)

Key Points

• Zweig DiMenna Associates LLC made a new investment in Embraer by purchasing 154,180 shares, valued at approximately $7.12 million, during the first quarter.
• The company reported a quarterly earnings per share (EPS) of $0.40, exceeding estimates of $0.21, with year-over-year revenue growth of 23%.
• An analyst upgrade by HSBC boosted Embraer's rating from "hold" to "strong-buy," with a price target adjustment from $45 to $57.

Zweig DiMenna Associates LLC bought a new position in Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 154,180 shares of the aerospace company's stock, valued at approximately $7,123,000. Zweig DiMenna Associates LLC owned about 0.08% of Embraer-Empresa Brasileira de Aeronautica as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Colonial Trust Co SC purchased a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the fourth quarter valued at $42,000. Edmond DE Rothschild Holding S.A. grew its holdings in shares of Embraer-Empresa Brasileira de Aeronautica by 71.9% during the fourth quarter. Edmond DE Rothschild Holding S.A. now owns 1,934 shares of the aerospace company's stock valued at $71,000 after buying an additional 809 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in shares of Embraer-Empresa Brasileira de Aeronautica by 673.0% during the first quarter. Farther Finance Advisors LLC now owns 2,466 shares of the aerospace company's stock valued at $114,000 after buying an additional 2,147 shares in the last quarter. Quantbot Technologies LP purchased a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the fourth quarter valued at $121,000. Finally, Redwood Investments LLC purchased a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the fourth quarter valued at $161,000. 34.65% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ERJ has been the topic of a number of research analyst reports. HSBC upgraded Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and lifted their price target for the company from $45.00 to $57.00 in a report on Wednesday, June 4th. The Goldman Sachs Group lifted their price objective on 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. UBS Group reissued a "sell" rating and set a $39.00 price objective (up previously from $35.00) on shares of Embraer-Empresa Brasileira de Aeronautica in a research report on Thursday, April 24th. Finally, 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. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, three have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, Embraer-Empresa Brasileira de Aeronautica has a consensus rating of "Moderate Buy" and an average price target of $50.40.

Embraer-Empresa Brasileira de Aeronautica Stock Up 6.0%

ERJ traded up $2.83 during trading on Tuesday, reaching $50.22. 1,684,791 shares of the stock traded hands, compared to its average volume of 1,676,051. Embraer-Empresa Brasileira de Aeronautica has a fifty-two week low of $26.04 and a fifty-two week high of $61.65. The stock's 50-day simple moving average is $51.29 and its two-hundred day simple moving average is $47.26. The stock has a market cap of $9.22 billion, a price-to-earnings ratio of 23.30 and a beta of 1.72. 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 results on Tuesday, May 6th. The aerospace company reported $0.40 earnings per share for the quarter, topping analysts' consensus estimates of $0.21 by $0.19. Embraer-Empresa Brasileira de Aeronautica had a return on equity of 16.43% and a net margin of 6.02%. The company had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.17 billion. During the same quarter in the previous year, the firm earned ($0.48) earnings per share. The business's quarterly revenue was up 23.0% compared to the same quarter last year. As a group, equities research analysts expect that Embraer-Empresa Brasileira de Aeronautica will post 2.04 EPS for the current year.

Embraer-Empresa Brasileira de Aeronautica Dividend Announcement

The business also recently declared a -- dividend, which was paid on Monday, June 2nd. Shareholders of record on Friday, May 16th were given a $0.049 dividend. The ex-dividend date was Friday, May 16th. Embraer-Empresa Brasileira de Aeronautica's dividend payout ratio is currently 1.85%.

Embraer-Empresa Brasileira de Aeronautica Company Profile

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.