Market Analysts see Embraer S.A. [ERJ] gaining to $23. Time to buy?


Embraer S.A. [NYSE: ERJ] closed the trading session at $10.83 on 04/27/22. The day’s price range saw the stock hit a low of $10.57, while the highest price level was $11.06. The company report on April 19, 2022 that Embraer Delivers Six Commercial and Eight Executive Jets in 1Q22.

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Embraer (NYSE: ERJ; B3: BOVESPA: EMBR3) delivered a total of 14 jets in the first quarter of 2022, of which six were commercial aircraft and eight were executive jets (six light and two large). As of March 31, the firm order backlog totaled USD 17.3 billion.

The stocks have a year to date performance of -38.99 percent and weekly performance of -10.12 percent. The stock has been moved at -34.92 percent over the last six months. The stock has performed -14.18 percent around the most recent 30 days and changed -27.66 percent over the most recent 3-months.

If compared to the average trading volume of 2.72M shares, ERJ reached to a volume of 3725161 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 $21.50 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 0.49, with the Price to Sales ratio for ERJ stock in the period of the last 12 months amounting to 0.43. The Price to Book ratio for the last quarter was 0.62, with the Price to Cash per share for the same quarter was set at 15.87. Price to Free Cash Flow for ERJ in the course of the last twelve months was 4.25 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 -10.12. With this latest performance, ERJ shares dropped by -14.18% in over the last four-week period, additionally sinking by -34.92% over the last 6 months – not to mention a drop of -7.67% 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 35.34, with the RSI for the last a single of trading hit 30.19, and the three-weeks RSI is set at 38.13 for Embraer S.A. [ERJ]. The present Moving Average for the last 50 days of trading for this stock 12.52, while it was recorded at 11.28 for the last single week of trading, and 15.03 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 +3.51 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 $768 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 $50.77 million in ERJ stocks shares; and SPX EQUITIES GESTAO DE RECURSOS LTDA, currently with $42.28 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 April and at the time of the April reporting period, where 80 institutional holders increased their position in Embraer S.A. [NYSE:ERJ] by around 13,490,853 shares. Additionally, 79 investors decreased positions by around 9,254,777 shares, while 19 investors held positions by with 47,953,480 shares. The mentioned changes placed institutional holdings at 70,699,110 shares, according to the latest SEC report filing. ERJ stock had 31 new institutional investments in for a total of 6,500,548 shares, while 24 institutional investors sold positions of 2,257,319 shares during the same period.