Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) Sets New 1-Year High – Time to Buy?

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ)’s share price reached a new 52-week high on Monday . The stock traded as high as $68.95 and last traded at $68.32, with a volume of 1591075 shares. The stock had previously closed at $65.43.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on EMBJ shares. Bank of America increased their target price on shares of Embraer-Empresa Brasileira de Aeronautica from $55.00 to $65.00 and gave the stock a “buy” rating in a report on Thursday, September 11th. JPMorgan Chase & Co. raised their price objective on Embraer-Empresa Brasileira de Aeronautica from $79.00 to $80.00 and gave the stock an “overweight” rating in a research note on Friday, November 7th. Zacks Research raised Embraer-Empresa Brasileira de Aeronautica from a “strong sell” rating to a “hold” rating in a research note on Monday, September 15th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Embraer-Empresa Brasileira de Aeronautica in a research report on Wednesday, October 8th. Finally, Citigroup boosted their price objective on Embraer-Empresa Brasileira de Aeronautica from $59.00 to $70.00 and gave the company a “buy” rating in a research report on Wednesday, October 15th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $63.86.

Embraer-Empresa Brasileira de Aeronautica Price Performance

The stock has a market cap of $12.02 billion, a price-to-earnings ratio of 40.39, a P/E/G ratio of 1.50 and a beta of 1.60. The company has a 50 day simple moving average of $65.27 and a 200-day simple moving average of $59.95. The company has a current ratio of 1.43, a quick ratio of 0.67 and a debt-to-equity ratio of 0.55.

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) last posted its quarterly earnings data on Tuesday, November 4th. The aerospace company reported $0.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.37). Embraer-Empresa Brasileira de Aeronautica had a return on equity of 8.24% and a net margin of 4.34%. Research analysts expect that Embraer-Empresa Brasileira de Aeronautica will post 2.04 EPS for the current year.

Embraer-Empresa Brasileira de Aeronautica declared that its Board of Directors has approved a stock buyback program on Thursday, November 6th that allows the company to buyback 0 shares. This buyback authorization allows the aerospace company to reacquire shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Embraer-Empresa Brasileira de Aeronautica

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Itau Unibanco Holding S.A. boosted its stake in shares of Embraer-Empresa Brasileira de Aeronautica by 22.7% during the 2nd quarter. Itau Unibanco Holding S.A. now owns 1,172,217 shares of the aerospace company’s stock worth $66,711,000 after buying an additional 217,015 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Embraer-Empresa Brasileira de Aeronautica during the second quarter valued at approximately $11,046,000. Ameriprise Financial Inc. grew its stake in Embraer-Empresa Brasileira de Aeronautica by 20.7% in the third quarter. Ameriprise Financial Inc. now owns 970,129 shares of the aerospace company’s stock valued at $58,644,000 after purchasing an additional 166,489 shares in the last quarter. Vaughan Nelson Investment Management L.P. increased its position in shares of Embraer-Empresa Brasileira de Aeronautica by 15.4% during the 2nd quarter. Vaughan Nelson Investment Management L.P. now owns 832,416 shares of the aerospace company’s stock worth $47,373,000 after purchasing an additional 110,836 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in shares of Embraer-Empresa Brasileira de Aeronautica by 50.6% during the 3rd quarter. Russell Investments Group Ltd. now owns 254,766 shares of the aerospace company’s stock worth $15,401,000 after purchasing an additional 85,604 shares in the last quarter. 34.65% of the stock is owned by institutional investors.

Embraer-Empresa Brasileira de Aeronautica Company Profile

Embraer SA (NYSE:EMBJ), legally known as Embraer – Empresa Brasileira de Aeronáutica SA, is a global aerospace company headquartered in São José dos Campos, Brazil. The company designs, develops, manufactures and sells commercial, executive, defence and agricultural aircraft. Embraer’s product portfolio includes the popular E-Jets family for regional and short-haul carriers, the advanced E2 series, a range of business jets under the Phenom, Legacy and Praetor brands, the A-29 Super Tucano military trainer and light attack aircraft, the C-390 Millennium multi-mission transport platform, and the Ipanema agricultural aircraft.

Embraer’s commercial aviation segment focuses on regional airlines and air taxi operators, offering aircraft that seat between 70 and 150 passengers.