Embraer S.A. [ERJ] fell -9.75% so far this year. What now?


Embraer S.A. [NYSE: ERJ] traded at a low on 01/13/22, posting a -4.07 loss after which it closed the day’ session at $16.02. The company report on January 12, 2022 that Embraer and Aernnova announce new strategic partnership in Évora.

Under the terms of the partnership, Aernnova acquires Embraer industrial plants in Évora, Portugal, and a long-term supply agreement is signed between both companies .

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Agreement aims to increase production and diversify client base .

The results of the trading session contributed to over 3856882 shares changing hands. Over the past one week, the price volatility of Embraer S.A. stands at 3.33% while the volatility over the past one month is 3.89%.

The market cap for ERJ stock reached $2.91 billion, with 183.69 million shares outstanding and 175.18 million shares in the current float. Compared to the average trading volume of 2.42M shares, ERJ reached a trading volume of 3856882 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $23.83 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 2.30. 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.

UBS have made an estimate for Embraer S.A. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 11, 2021. The new note on the price target was released on September 23, 2021, representing the official price target for Embraer S.A. stock. Previously, the target price had yet another raise from $8 to $20, while BofA Securities kept a Buy rating on ERJ stock.

The Average True Range (ATR) for Embraer S.A. is set at 0.72, 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 1.14, with the Price to Cash per share for the same quarter was set at 12.91. Price to Free Cash Flow for ERJ in the course of the last twelve months was 10.34 with Quick ratio for the last quarter at 1.30.

How has ERJ stock performed recently?

Embraer S.A. [ERJ] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.42. With this latest performance, ERJ shares gained by 10.25% in over the last four-week period, additionally plugging by 17.28% over the last 6 months – not to mention a rise of 107.78% 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 46.95, with the RSI for the last a single of trading hit 40.96, and the three-weeks RSI is set at 48.91 for Embraer S.A. [ERJ]. The present Moving Average for the last 50 days of trading for this stock 15.71, while it was recorded at 16.64 for the last single week of trading, and 14.97 for the last 200 days.

Embraer S.A. [ERJ]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Embraer S.A. [ERJ] shares currently have an operating margin of -3.64 and a Gross Margin at +12.25. Embraer S.A.’s Net Margin is presently recorded at -18.41.

Return on Total Capital for ERJ is now -2.66, given the latest momentum, and Return on Invested Capital for the company is -14.28. Return on Equity for this stock declined to -25.14, with Return on Assets sitting at -7.42. When it comes to the capital structure of this company, Embraer S.A. [ERJ] has a Total Debt to Total Equity ratio set at 159.67. Additionally, ERJ Total Debt to Total Capital is recorded at 61.49, with Total Debt to Total Assets ending up at 42.78. Long-Term Debt to Equity for the company is recorded at 145.98, with the Long-Term Debt to Total Capital now at 56.22.

Reflecting on the efficiency of the workforce at the company, Embraer S.A. [ERJ] managed to generate an average of -$230,937 per employee. Receivables Turnover for the company is 5.25 with a Total Asset Turnover recorded at a value of 0.40.Embraer S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 2.00.

Earnings analysis for Embraer S.A. [ERJ]

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%.

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Insider trade positions for Embraer S.A. [ERJ]

There are presently around $1,122 million, or 37.70% 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 21,053,274, which is approximately -10.66% of the company’s market cap and around 12.40% of the total institutional ownership; AMERICAN CENTURY COMPANIES INC, holding 4,427,397 shares of the stock with an approximate value of $73.94 million in ERJ stocks shares; and OLDFIELD PARTNERS LLP, currently with $65.0 million in ERJ stock with ownership of nearly -11.756% of the company’s market capitalization.

68 institutional holders increased their position in Embraer S.A. [NYSE:ERJ] by around 7,008,042 shares. Additionally, 81 investors decreased positions by around 11,676,251 shares, while 18 investors held positions by with 48,490,375 shares. The mentioned changes placed institutional holdings at 67,174,668 shares, according to the latest SEC report filing. ERJ stock had 29 new institutional investments in for a total of 2,308,145 shares, while 24 institutional investors sold positions of 3,503,305 shares during the same period.