Embraer S.A. [ERJ] Stock trading around $11.23 per share: What’s Next?

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Embraer S.A. [NYSE: ERJ] surged by $0.63 during the normal trading session on Wednesday and reaching a high of $11.335 during the day while it closed the day at $11.23. The company report on March 16, 2022 that Eve and Global Crossing Airlines sign Letter of Intent for up to 200 eVTOL aircraft and enable future collaboration for UAM.


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Eve UAM, LLC (“Eve”), an Embraer S.A. (B3: EMBR3, NYSE: ERJ) (“Embraer”) company, and Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO JETMF: OTCQB) (“GlobalX”) have signed a Letter of Intent (LoI) to order up to 200 of Eve’s electric vertical take-off and landing aircraft (eVTOL). This potential sale is included in Eve’s current order backlog of up to 1,785 eVTOLs. The company expects to start the deliveries in 2026.

The agreement also enables a promising partnership that intends to explore the development of an ecosystem to scale Urban Air Mobility (UAM) and reinforces the Concept of Operations (CONOPS) in Miami-Dade that was announced today. GlobalX’s expertise as a flag airline will contribute not only to the formulation of the infrastructure needed to permit eVTOL flights, but also the deployment of Eve’s aircraft throughout their network.

Embraer S.A. stock has also loss -15.31% of its value over the past 7 days. However, ERJ stock has declined by -22.71% in the 3 months of the year. Over the past six months meanwhile, it has lost -31.61% and lost -36.73% year-on date.

The market cap for ERJ stock reached $2.07 billion, with 183.66 million shares outstanding and 175.18 million shares in the current float. Compared to the average trading volume of 2.71M shares, ERJ reached a trading volume of 4705790 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 $22.16 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.

Morgan Stanley have made an estimate for Embraer S.A. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 20, 2022. While these analysts kept the previous recommendation, UBS raised their target price from $16 to $24. The new note on the price target was released on November 11, 2021, representing the official price target for Embraer S.A. stock. Previously, the target price had yet another raise to $23, while Goldman analysts kept a Buy rating on ERJ stock. On June 11, 2021, analysts increased their price target for ERJ shares from 8 to 20.

The Average True Range (ATR) for Embraer S.A. is set at 0.84, with the Price to Sales ratio for ERJ stock in the period of the last 12 months amounting to 0.46. The Price to Book ratio for the last quarter was 0.70, with the Price to Cash per share for the same quarter was set at 15.34. Price to Free Cash Flow for ERJ in the course of the last twelve months was 4.56 with Quick ratio for the last quarter at 1.40.

ERJ stock trade performance evaluation

Embraer S.A. [ERJ] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -15.31. With this latest performance, ERJ shares dropped by -22.28% in over the last four-week period, additionally sinking by -31.61% over the last 6 months – not to mention a rise of 9.14% 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 37.35, with the RSI for the last a single of trading hit 38.03, and the three-weeks RSI is set at 38.04 for Embraer S.A. [ERJ]. The present Moving Average for the last 50 days of trading for this stock 14.48, while it was recorded at 10.76 for the last single week of trading, and 15.46 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 +3.76 and a Gross Margin at +15.61. Embraer S.A.’s Net Margin is presently recorded at -1.21.

Return on Equity for this stock declined to -1.86, with Return on Assets sitting at -0.49.

Embraer S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 2.10.

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

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 $748 million, or 39.50% 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 18,887,651, which is approximately -10.286% of the company’s market cap and around 12.40% of the total institutional ownership; AMERICAN CENTURY COMPANIES INC, holding 4,675,082 shares of the stock with an approximate value of $49.56 million in ERJ stocks shares; and SPX EQUITIES GESTAO DE RECURSOS LTDA, currently with $41.26 million in ERJ stock with ownership of nearly 11.269% of the company’s market capitalization.

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 83 institutional holders increased their position in Embraer S.A. [NYSE:ERJ] by around 13,236,386 shares. Additionally, 74 investors decreased positions by around 9,941,495 shares, while 19 investors held positions by with 47,406,184 shares. The mentioned changes placed institutional holdings at 70,584,065 shares, according to the latest SEC report filing. ERJ stock had 33 new institutional investments in for a total of 6,244,570 shares, while 20 institutional investors sold positions of 2,189,956 shares during the same period.

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