Embraer (ERJ) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Embraer (NYSE:ERJ) from a buy rating to a hold rating in a research report released on Friday, Zacks.com reports.

According to Zacks, “Embraer is focusing on technological innovation and upgrades that will ensure strong demand for its products and sustain bottom-line growth. Embraer continues to witness strong demand for its E-jets and thereby booked notable orders in the reported quarter. Such consistent inflow of orders should boost Embraer’s revenue growth, in coming quarters. In December 2018, Embraer and Boeing approved the previously discussed terms of a strategic partnership that would boost both the companies' position in the commercial jet market. However, shares of the company underperformed its industry in the past 12 months. Embraer suffered a notable top-line decelerationin its commercial aircraft business in the fourth quarter. Additionally, a weak commercial portfolio may pose concerns for the company in the days ahead.”

Other equities analysts have also issued research reports about the stock. ValuEngine upgraded shares of Embraer from a hold rating to a buy rating in a report on Wednesday, May 1st. Morgan Stanley restated an equal weight rating and issued a $23.50 target price (down previously from $24.50) on shares of Embraer in a report on Thursday, January 17th. Cowen restated a hold rating and issued a $24.00 target price on shares of Embraer in a report on Thursday, January 17th. Finally, Credit Suisse Group lowered shares of Embraer from an outperform rating to a neutral rating in a report on Tuesday, January 22nd. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and an average price target of $26.75.

ERJ stock opened at $19.03 on Friday. The firm has a market capitalization of $3.58 billion, a P/E ratio of -63.43, a PEG ratio of 5.75 and a beta of -0.25. The company has a current ratio of 2.33, a quick ratio of 1.51 and a debt-to-equity ratio of 0.88. Embraer has a 12-month low of $17.99 and a 12-month high of $27.70.

Embraer (NYSE:ERJ) last released its earnings results on Thursday, March 14th. The aerospace company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.10). The firm had revenue of $1.67 billion during the quarter, compared to analyst estimates of $1.70 billion. Embraer had a negative net margin of 3.51% and a negative return on equity of 1.35%. Embraer’s quarterly revenue was down 3.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.19 EPS. Equities analysts anticipate that Embraer will post -0.04 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Northern Trust Corp raised its holdings in shares of Embraer by 3.0% during the first quarter. Northern Trust Corp now owns 511,761 shares of the aerospace company’s stock valued at $9,728,000 after purchasing an additional 14,866 shares during the period. Rockefeller Capital Management L.P. acquired a new position in shares of Embraer during the first quarter valued at about $823,000. NumerixS Investment Technologies Inc raised its holdings in shares of Embraer by 604.7% during the first quarter. NumerixS Investment Technologies Inc now owns 12,776 shares of the aerospace company’s stock valued at $242,000 after purchasing an additional 10,963 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Embraer by 22.8% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 7,222 shares of the aerospace company’s stock valued at $137,000 after purchasing an additional 1,340 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Embraer by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 3,756,914 shares of the aerospace company’s stock valued at $71,424,000 after purchasing an additional 136,948 shares during the period. Hedge funds and other institutional investors own 46.04% of the company’s stock.

Embraer Company Profile

Embraer SA designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. It operates through Commercial Aviation, Defense and Security, Executive Jets, Service & Support, and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets; and provides support services, as well as leases aircraft.

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