CAE (NYSE:CAE) Downgraded to Hold Rating by Royal Bank Of Canada

CAE (NYSE:CAE) (TSE:CAE) was downgraded by Royal Bank Of Canada from a “moderate buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

Several other equities research analysts also recently issued reports on CAE. National Bank Financial restated an “outperform” rating on shares of CAE in a research report on Friday. Stifel Nicolaus began coverage on CAE in a research note on Wednesday, March 4th. They set a “buy” rating on the stock. Zacks Research raised CAE from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 13th. Scotiabank reaffirmed an “outperform” rating on shares of CAE in a report on Tuesday, February 17th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of CAE in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $32.00.

CAE Price Performance

NYSE:CAE opened at $23.80 on Monday. The company has a market cap of $7.65 billion, a P/E ratio of 33.52, a P/E/G ratio of 2.60 and a beta of 1.03. The firm’s fifty day moving average price is $26.33 and its two-hundred day moving average price is $28.60. CAE has a one year low of $22.76 and a one year high of $34.24. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.96 and a quick ratio of 0.77.

CAE (NYSE:CAE) (TSE:CAE) last posted its earnings results on Thursday, May 21st. The aerospace company reported $0.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.30 by $0.01. The company had revenue of $953.79 million during the quarter, compared to analysts’ expectations of $924.83 million. CAE had a net margin of 6.36% and a return on equity of 7.45%. CAE’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.47 EPS. CAE has set its FY 2027 guidance at 0.880-0.930 EPS. Equities analysts expect that CAE will post 0.91 earnings per share for the current year.

Institutional Trading of CAE

A number of institutional investors and hedge funds have recently made changes to their positions in CAE. Millennium Management LLC bought a new position in CAE in the first quarter valued at approximately $4,170,000. Goldman Sachs Group Inc. lifted its stake in CAE by 142.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,709,480 shares of the aerospace company’s stock worth $42,036,000 after purchasing an additional 1,004,820 shares during the last quarter. United Services Automobile Association lifted its stake in CAE by 4.5% during the first quarter. United Services Automobile Association now owns 10,822 shares of the aerospace company’s stock worth $265,000 after purchasing an additional 462 shares during the last quarter. Prudential Financial Inc. acquired a new stake in shares of CAE in the 2nd quarter valued at $287,000. Finally, Marshall Wace LLP bought a new position in shares of CAE in the 2nd quarter valued at $3,655,000. Institutional investors own 67.36% of the company’s stock.

CAE News Summary

Here are the key news stories impacting CAE this week:

• Positive Sentiment: Scotiabank raised its FY2027 EPS estimate to $0.91 from $0.88 and kept an Outperform rating, signaling confidence in CAE’s medium-term earnings trajectory.
• Positive Sentiment: Scotiabank also lifted its near-term Q1 2027, Q2 2027, Q3 2027 and FY2030 earnings estimates, and kept FY2028–FY2030 forecasts relatively strong, which supports the long-term growth story.
• Neutral Sentiment: The company’s recent earnings-call recap emphasized a “reset year” and longer-term ambition, suggesting management is balancing short-term execution with future growth plans. CAE Inc. Earnings Call: Reset Year, Long-Term Ambition
• Negative Sentiment: Scotiabank trimmed its Q4 2027, Q2 2028, Q4 2028, and FY2029 EPS estimates, indicating some caution around later-period profitability.
• Negative Sentiment: RBC’s cut to a Sector Perform rating from a more bullish stance may have added to investor caution, even though the new target still implies meaningful upside.

CAE Company Profile

CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms.

In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions.