Is CAE Inc. (NYSE: CAE) Back In The Buying Zone?

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    Jarislowsky, Fraser Ltd. recently announced the acquisition of new stake in CAE Inc. (NYSE:CAE). The institutional investor has increased its shareholding in the Industrials company by 17.69% to 13.87 million shares with purchase of 2.08 million shares. This fresh investment now brings its stake to 5.22% valued currently at $208.47 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.33 million to 7.72 million shares. And Capital Research & Management Co. has lifted its position by 203.68% or 5.09 million shares – to 7.59 million shares.

    With over 0.27 million CAE Inc. (CAE) shares trading Tuesday and a closing price of $15.35 on the day, the dollar volume was approximately $4.07 million. The shares have shown a negative weekly performance of -5.71% and its price on 07/07/20 lost nearly -2.72%. Currently, there are 266.06M common shares owned by the public and among those 263.41M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for CAE have a consensus price objective of $16.94. The analysts have set the share’s price value over the next 12 months at a high of $21.66 and a low of $13.54 should the stock experience a downside. Incidentally, analysts’ outlook for the CAE Inc. stock is 2.40 for the next 12 months. The average price target is 19.34% above its last price level and an upside to the estimated low will see the stock lose -13.37% over that period. But an upside of 29.13% will see the stock hit the forecast high price target while mean target price for the stock is $16.67.

    Insiders at the company have nil transactions over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC).

    The top 3 mutual fund holders in CAE Inc. are Lazard International Strategic Eq, Vanguard Total International Stoc, and American Funds Insurance Series -. Lazard International Strategic Eq owns 6.06 million shares of the company’s stock, all valued at over $91.11 million. The company sold -0.21 million shares recently to bring their total holdings to about 2.28% of the shares outstanding. Vanguard Total International Stoc has total holdings of 4.71 million shares valued at over $70.72 million and representing 1.77% of the shares outstanding. American Funds Insurance Series – bought 2.09 million shares to bring its total holdings to over 4.59 million shares at a value of $68.97 million. American Funds Insurance Series – now owns shares totaling to 1.73% of the shares outstanding.

    Shares of CAE Inc. (NYSE: CAE) opened at $15.65, down -$0.13 from a prior closing price of $15.78. However, the script later closed the day at $15.35, down -2.72%. The company’s stock has a 5-day price change of -5.71% and 28.78% over the past three months. CAE shares are trading -41.99% year to date (YTD), with the 12-month market performance down to -44.22% lower. It has a 12-month low price of $9.80 and touched a high of $31.56 over the same period. Currently, 0.27 million shares have been traded, compared to an average intraday trading volume of 684.13K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -10.58%, -4.80%, and -30.83% respectively.

    Institutional ownership of CAE Inc. (NYSE: CAE) shares accounts for 73.30% of the company’s 266.06M shares outstanding. Mutual fund holders own 17.27%, while other institutional holders and individual stakeholders account for 37.58% and — respectively.

    It has a market capitalization of $4.28B and a beta (3y monthly) value of 1.57. The stock’s trailing 12-month PE ratio is 17.93, while the earnings-per-share (ttm) stands at $0.86. The company has a PEG of 2.28 and a Quick Ratio of 1.10 with the debt-to-equity ratio at 1.33. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.03% over the week and 4.95% over the month.

    Analysts forecast that CAE Inc. (CAE) will achieve an EPS of $0.25 for the current quarter, $0.22 for the next quarter and $0.95 for 2019. The lowest estimate earnings-per-share for the quarter is $0.24 while analysts give the company a high EPS estimate of $0.28. Comparatively, EPS for the current quarter was $0.24 a year ago. Earnings per share for the fiscal year are expected to decrease by -5.50%, and 105.86% over the next financial year. EPS should shrink at an annualized rate of 7.87% over the next five years, compared to 9.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate CAE Inc. (CAE) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 6 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CAE, a number of firms have released research notes about the stock. BofA Securities stated their Neutral rating for the stock in a research note on July 01, 2020. Scotiabank coverage for the CAE Inc. (CAE) stock in a research note released on June 09, 2020 offered a Sector Perform rating with a price target of. CIBC was of a view on April 13, 2020 that the stock is Sector Outperform, while TD Securities gave the stock Buy rating on April 02, 2020. Canaccord Genuity on their part issued Buy rating on March 24, 2020.

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