Embraer (NYSE:ERJ) Trading 5.8% Higher Following Strong Earnings

Embraer S.A. (NYSE:ERJ) shares shot up 5.8% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $45.38 and last traded at $45.36. 751,455 shares were traded during mid-day trading, a decline of 39% from the average session volume of 1,236,136 shares. The stock had previously closed at $42.89.

The aerospace company reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $0.47. Embraer had a return on equity of 11.61% and a net margin of 8.24%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. TD Cowen upgraded Embraer to a “strong-buy” rating in a research note on Thursday, December 19th. StockNews.com cut shares of Embraer from a “buy” rating to a “hold” rating in a report on Saturday, February 22nd. Bank of America increased their price target on shares of Embraer from $40.00 to $55.00 and gave the stock a “buy” rating in a research note on Thursday, November 21st. Finally, UBS Group lowered shares of Embraer from a “neutral” rating to a “sell” rating and lifted their price objective for the company from $29.00 to $32.00 in a research note on Tuesday, November 19th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $40.50.

Hedge Funds Weigh In On Embraer

Institutional investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio acquired a new stake in shares of Embraer in the 4th quarter worth $5,042,000. Ulysses Management LLC acquired a new stake in Embraer in the fourth quarter valued at about $2,017,000. Two Sigma Investments LP boosted its holdings in Embraer by 27.4% in the 4th quarter. Two Sigma Investments LP now owns 506,051 shares of the aerospace company’s stock valued at $18,562,000 after purchasing an additional 108,740 shares in the last quarter. Shay Capital LLC increased its position in Embraer by 53.4% during the 4th quarter. Shay Capital LLC now owns 13,040 shares of the aerospace company’s stock worth $478,000 after purchasing an additional 4,540 shares during the period. Finally, Redwood Investments LLC purchased a new position in shares of Embraer during the 4th quarter worth approximately $161,000. 34.65% of the stock is owned by institutional investors and hedge funds.

Embraer Stock Up 6.3 %

The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.76 and a current ratio of 1.56. The firm has a market capitalization of $8.37 billion, a price-to-earnings ratio of 16.84 and a beta of 1.71. The firm has a fifty day moving average price of $39.80 and a 200 day moving average price of $36.87.

About Embraer

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.