Embraer S.A. [ERJ] moved up 5.90: Why It’s Important

Embraer S.A. [NYSE: ERJ] closed the trading session at $9.69 on 02/24/21. The day’s price range saw the stock hit a low of $9.03, while the highest price level was $9.87. The company report on February 18, 2021 that EMBRAER S.A.: Embraer welcomes the decision of the Brazilian government to launch negotiations on subsidies in the aeronautic sector.

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Embraer welcomes the Brazilian Government’s decisions to withdraw its ongoing World Trade Organization (WTO) dispute with Canada regarding aeronautical subsidies and to launch negotiations on more effective disciplines to regulate government support in the Commercial Aviation segment.

At the WTO, Brazil challenged more than USD 3 billion in illegal subsidies that the Governments of Canada and Quebec provided to Bombardier for the launch, development and production of the C-Series program. These subsidies distorted the conditions of competition in the global market for commercial aircraft, causing serious prejudice to Embraer, in clear violation of WTO rules.

The stocks have a year to date performance of 42.29 percent and weekly performance of 13.60 percent. The stock has been moved at 79.78 percent over the last six months. The stock has performed 51.64 percent around the most recent 30 days and changed 66.49 percent over the most recent 3-months.

If compared to the average trading volume of 3.53M shares, ERJ reached to a volume of 6900390 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $6.76 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 0.51, with the Price to Sales ratio for ERJ stock in the period of the last 12 months amounting to 0.66. The Price to Book ratio for the last quarter was 0.61, with the Price to Cash per share for the same quarter was set at 12.87.

ERJ stock trade performance evaluation

Embraer S.A. [ERJ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 13.60. With this latest performance, ERJ shares gained by 51.64% in over the last four-week period, additionally plugging by 79.78% over the last 6 months – not to mention a drop of -42.46% 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 79.16, with the RSI for the last a single of trading hit 85.33, and the three-weeks RSI is set at 74.29 for Embraer S.A. [ERJ]. The present Moving Average for the last 50 days of trading for this stock 7.15, while it was recorded at 9.03 for the last single week of trading, and 5.97 for the last 200 days.

Embraer S.A. [ERJ]: An insightful look at the core fundamentals

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 1.10 and a Current Ratio set at 2.30.

Earnings per share (EPS) analysis for Embraer S.A. [ERJ] stock

With the latest financial reports released by the company, Embraer S.A. posted -0.51/share EPS, while the average EPS was predicted by analysts to be reported at -0.12/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -325.00%. 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%.

Embraer S.A. [ERJ]: Insider Ownership positions

There are presently around $604 million, or 36.60% 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 24,641,463, which is approximately 1.573% of the company’s market cap and around 12.40% of the total institutional ownership; OLDFIELD PARTNERS LLP, holding 5,282,065 shares of the stock with an approximate value of $51.18 million in ERJ stocks shares; and HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, currently with $48.43 million in ERJ stock with ownership of nearly -5.106% of the company’s market capitalization.

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Positions in Embraer S.A. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 64 institutional holders increased their position in Embraer S.A. [NYSE:ERJ] by around 10,114,586 shares. Additionally, 63 investors decreased positions by around 9,683,454 shares, while 14 investors held positions by with 42,504,006 shares. The mentioned changes placed institutional holdings at 62,302,046 shares, according to the latest SEC report filing. ERJ stock had 29 new institutional investments in for a total of 5,918,169 shares, while 24 institutional investors sold positions of 1,662,851 shares during the same period.

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