Market cap of Embraer S.A. [ERJ] reaches 952.39M – now what?

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Embraer S.A. [NYSE: ERJ] gained 6.64% or 0.34 points to close at $5.46 with a heavy trading volume of 2295963 shares. The company report on November 12, 2020 that OGMA an Embraer Group Company becomes new Pratt & Whitney Authorized Maintenance Center to support GTF engines.

OGMA joins Pratt & Whitney’s Authorized Maintenance Center network, one of the world’s largest aircraft engine manufacturers.

OGMA invests 74 million euros and starts to maintain GTF (Geared Turbofan) engines, used by the new generation of commercial aircraft, namely Airbus A320neo family, the Airbus A220, and the Embraer E190-E2 and E195-E2.

It opened the trading session at $5.22, the shares rose to $5.49 and dropped to $5.22, the range by which the price of stock traded the whole day. The daily chart for ERJ points out that the company has recorded 17.67% gains over the past six months. However, it is still -37.88% lower than its most recent low trading price.

If we look at the average trading volume of 2.31M shares, ERJ reached to a volume of 2295963 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Embraer S.A. [ERJ]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ERJ shares is $6.48 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ERJ stock is a recommendation set at 3.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Embraer S.A. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on August 11, 2020. The new note on the price target was released on May 04, 2020, representing the official price target for Embraer S.A. stock.

The Average True Range (ATR) for Embraer S.A. is set at 0.30, with the Price to Sales ratio for ERJ stock in the period of the last 12 months amounting to 0.42. The Price to Book ratio for the last quarter was 0.35, with the Price to Cash per share for the same quarter was set at 11.49.

Trading performance analysis for ERJ stock

Embraer S.A. [ERJ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.47. With this latest performance, ERJ shares gained by 17.67% in over the last four-week period, additionally plugging by 17.67% over the last 6 months – not to mention a drop of -67.03% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ERJ stock in for the last two-week period is set at 62.52, with the RSI for the last a single of trading hit 67.92, and the three-weeks RSI is set at 59.76 for Embraer S.A. [ERJ]. The present Moving Average for the last 50 days of trading for this stock 4.75, while it was recorded at 5.37 for the last single week of trading, and 7.19 for the last 200 days.

Embraer S.A. [ERJ]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Embraer S.A. [ERJ] shares currently have an operating margin of -4.31 and a Gross Margin at +13.67. Embraer S.A.’s Net Margin is presently recorded at -8.31.

Return on Total Capital for ERJ is now -2.04, given the latest momentum, and Return on Invested Capital for the company is -4.07. Return on Equity for this stock declined to -6.03, with Return on Assets sitting at -2.02. When it comes to the capital structure of this company, Embraer S.A. [ERJ] has a Total Debt to Total Equity ratio set at 3.71. Additionally, ERJ Total Debt to Total Capital is recorded at 3.58, with Total Debt to Total Assets ending up at 1.22. Long-Term Debt to Equity for the company is recorded at 3.14, with the Long-Term Debt to Total Capital now at 3.03.

Reflecting on the efficiency of the workforce at the company, Embraer S.A. [ERJ] managed to generate an average of -$46,459 per employee. Receivables Turnover for the company is 2.86 with a Total Asset Turnover recorded at a value of 0.24.Embraer S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 2.10.

Embraer S.A. [ERJ]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Embraer S.A. posted -0.26/share EPS, while the average EPS was predicted by analysts to be reported at -0.09/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -188.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ERJ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Embraer S.A. go to 4.08%.

An analysis of insider ownership at Embraer S.A. [ERJ]

There are presently around $353 million, or 38.80% of ERJ stock, in the hands of institutional investors. The top three institutional holders of ERJ stocks are: BRANDES INVESTMENT PARTNERS, LP with ownership of 24,259,929, which is approximately -5.257% of the company’s market cap and around 12.40% of the total institutional ownership; HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, holding 5,266,440 shares of the stock with an approximate value of $28.75 million in ERJ stocks shares; and OLDFIELD PARTNERS LLP, currently with $23.33 million in ERJ stock with ownership of nearly -19.547% of the company’s market capitalization.

Positions in Embraer S.A. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 57 institutional holders increased their position in Embraer S.A. [NYSE:ERJ] by around 8,537,039 shares. Additionally, 76 investors decreased positions by around 13,476,058 shares, while 19 investors held positions by with 42,728,817 shares. The mentioned changes placed institutional holdings at 64,741,914 shares, according to the latest SEC report filing. ERJ stock had 20 new institutional investments in for a total of 2,946,317 shares, while 30 institutional investors sold positions of 7,508,323 shares during the same period.

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