CECO Environmental (NASDAQ:CECO) Trading 6.7% Higher - What's Next?

Key Points

• CECO Environmental shares jumped 6.7% to about $74.10, although trading volume was 96% below the average session level.
• Analyst sentiment remains broadly positive, with eight Buy ratings, one Hold, and one Sell; the average price target is $104.88, well above the recent share price.
• The company exceeded quarterly expectations, reporting $0.47 EPS versus a $0.26 consensus estimate and 53.7% year-over-year revenue growth, while major institutions—including BlackRock—built new positions.

CECO Environmental Corp. (NASDAQ:CECO - Get Free Report)'s stock price shot up 6.7% on Tuesday . The stock traded as high as $73.84 and last traded at $74.1040. 28,044 shares were traded during mid-day trading, a decline of 96% from the average session volume of 741,103 shares. The stock had previously closed at $69.48.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Zacks Research cut shares of CECO Environmental from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. Weiss Ratings downgraded CECO Environmental from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, September 16th. Needham & Company LLC reissued a "buy" rating and issued a $110.00 price target on shares of CECO Environmental in a report on Tuesday, August 11th. JPMorgan Chase & Co. initiated coverage on CECO Environmental in a research note on Thursday, July 9th. They issued an "overweight" rating and a $130.00 price target on the stock. Finally, Lake Street Capital increased their price objective on CECO Environmental from $80.00 to $111.00 and gave the stock a "buy" rating in a research report on Wednesday, June 10th. Eight investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $104.88.

CECO Environmental Stock Performance

The company has a debt-to-equity ratio of 0.34, a current ratio of 1.50 and a quick ratio of 1.18. The company has a market capitalization of $4.29 billion, a PE ratio of -106.22 and a beta of 1.51. The stock has a 50-day simple moving average of $73.56 and a 200 day simple moving average of $74.29.

CECO Environmental (NASDAQ:CECO - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.21. The business had revenue of $284.96 million during the quarter, compared to the consensus estimate of $282.21 million. CECO Environmental had a positive return on equity of 7.36% and a negative net margin of 3.39%.The business's revenue was up 53.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.26 EPS. Equities analysts anticipate that CECO Environmental Corp. will post 2.43 EPS for the current fiscal year.

Insider Transactions at CECO Environmental

In other news, Director Jason Dezwirek sold 34,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $96.61, for a total transaction of $3,284,740.00. Following the completion of the transaction, the director directly owned 166,000 shares of the company's stock, valued at $16,037,260. This trade represents a 17.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Peter K. Johansson sold 30,000 shares of CECO Environmental stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $96.49, for a total value of $2,894,700.00. Following the transaction, the chief financial officer owned 40,746 shares of the company's stock, valued at $3,931,581.54. This represents a 42.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 16.90% of the company's stock.

Hedge Funds Weigh In On CECO Environmental

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in shares of CECO Environmental during the 2nd quarter valued at approximately $392,358,000. Jupiter Topco LLC acquired a new stake in CECO Environmental in the second quarter valued at $86,194,000. Legal & General Group Plc bought a new position in CECO Environmental during the 2nd quarter valued at $40,461,000. Deutsche Bank AG acquired a new position in CECO Environmental during the 2nd quarter worth $30,475,000. Finally, Capital World Investors acquired a new position in CECO Environmental during the 4th quarter worth $19,936,000. 68.08% of the stock is owned by institutional investors and hedge funds.

CECO Environmental Company Profile

CECO Environmental Corp. NASDAQ: CECO is an environmental technology company that provides engineered solutions for industrial air quality, water and wastewater treatment, and related process applications. Its systems are designed to help industrial customers control emissions, improve operational efficiency, and meet environmental and regulatory requirements.

The company offers products and services including industrial dust and particulate collectors, filtration systems, scrubbers, fans, dampers, valves, thermal and catalytic oxidizers, and other air-pollution-control equipment.

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