Embraer S.A. (NYSE: ERJ): Hunting Genuine Value In Market Debris

    SBUX Stock
    SBUX Stock

    Renaissance Technologies LLC recently announced the acquisition of new stake in Embraer S.A. (NYSE:ERJ). The institutional investor has increased its shareholding in the Industrials company by 36.87% to 2.56 million shares with purchase of 0.69 million shares. This fresh investment now brings its stake to 1.38% valued currently at $14.78 million. In addition, Arrowstreet Capital LP raised its holdings by 1.61 million to 2.09 million shares. And JPMorgan Securities LLC (Investme.. has lifted its position by 54.50% or 0.55 million shares – to 1.57 million shares.

    With over 2.12 million Embraer S.A. (ERJ) shares trading Friday and a closing price of $5.54 on the day, the dollar volume was approximately $11.77 million. The shares have shown a positive weekly performance of 8.20% and its price on 08/28/20 gained nearly 5.73%. Currently, there are 184.04M common shares owned by the public and among those 174.79M 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: 9 analysts who have offered their price forecasts for ERJ have a consensus price objective of $6.37. The analysts have set the share’s price value over the next 12 months at a high of $10.44 and a low of $4.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Embraer S.A. stock is 3.20 for the next 12 months. The average price target is 16.06% above its last price level and an upside to the estimated low will see the stock lose -38.5% over that period. But an upside of 46.93% will see the stock hit the forecast high price target while mean target price for the stock is $7.00.

    The top 3 mutual fund holders in Embraer S.A. are Brandes Emerging Markets Value Fu, Vanguard Windsor Funds – Vanguard, and DFA Emerging Markets Core Equity. Brandes Emerging Markets Value Fu owns 3.34 million shares of the company’s stock, all valued at over $19.3 million. DFA Emerging Markets Core Equity sold -0.19 million shares to bring its total holdings to over 1.2 million shares at a value of $6.91 million. DFA Emerging Markets Core Equity now owns shares totaling to 0.65% of the shares outstanding.

    Shares of Embraer S.A. (NYSE: ERJ) opened at $5.30, up $0.06 from a prior closing price of $5.24. However, the script later closed the day at $5.54, up 5.73%. The company’s stock has a 5-day price change of 8.20% and 0.54% over the past three months. ERJ shares are trading -71.58% year to date (YTD), with the 12-month market performance down to -68.12% lower. It has a 12-month low price of $3.99 and touched a high of $20.24 over the same period. Currently, 2.12 million shares have been traded, compared to an average intraday trading volume of 3.43 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.68%, -6.47%, and -49.03% respectively.

    Institutional ownership of Embraer S.A. (NYSE: ERJ) shares accounts for 40.20% of the company’s 184.04M shares outstanding. Mutual fund holders own 10.65%, while other institutional holders and individual stakeholders account for 27.90% and — respectively.

    It has a market capitalization of $974.60M and a beta (3y monthly) value of 0.38. The earnings-per-share (ttm) stands at -$3.64. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.44% over the week and 4.80% over the month.

    Analysts forecast that Embraer S.A. (ERJ) will achieve an EPS of -$0.4 for the current quarter, $0.19 for the next quarter and -$0.65 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.69 while analysts give the company a high EPS estimate of -$0.1. Comparatively, EPS for the current quarter was -$0.26 a year ago. Earnings per share for the fiscal year are expected to increase by 13.30%, and 68.90% over the next financial year. EPS should grow at an annualized rate of 4.08% over the next five years, compared to -35.70% over the past 5-year period.

    Looking at the support for the ERJ, a number of firms have released research notes about the stock. Morgan Stanley stated their Underweight rating for the stock in a research note on August 11, 2020, with the firm’s price target at. BofA/Merrill coverage for the Embraer S.A. (ERJ) stock in a research note released on May 04, 2020 offered a Neutral rating with a price target of. Credit Suisse was of a view on April 28, 2020 that the stock is Underperform, while Goldman gave the stock Neutral rating on April 09, 2020, issuing a price target of. HSBC Securities on their part issued Buy rating on March 13, 2020.


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