At Current Price, Is It Too Late To Buy Embraer S.A. (ERJ)?

On Wednesday, shares of Embraer S.A. (NYSE:ERJ) marked $16.56 per share versus a previous $16.59 closing price. With having a -0.18% loss, an insight into the fundamental values of Embraer S.A., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. ERJ showed a fall of -25.17% within its YTD performance, with highs and lows between $16.57 – $23.68 during the period of 52 weeks, compared to the simple moving average of -15.90% in the period of the last 200 days.

Credit Suisse equity researchers changed the status of Embraer S.A. (NYSE: ERJ) shares from “Outperform” to a “Neutral” rating in the report published on January 22nd, 2019. Other analysts, including Morgan Stanley, also published their reports on ERJ shares. Morgan Stanley repeated the rating from the previous report, marking ERJ under “Equal-Weight” rating, in the report published on January 17th, 2019. Additionally, ERJ shares got another “Overweight” rating from Morgan Stanley. On the other hand, JP Morgan Downgrade the “Neutral” rating for ERJ shares, as published in the report on October 31st, 2017. Credit Suisse seems to be going bullish on the price of ERJ shares, based on the price prediction for ERJ. Another “Sell” rating came from Goldman.

Embraer S.A. (ERJ) Analysis

The present dividend yield for ERJ owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Embraer S.A., the company needs to provide a healthy cash flow, currently at the value of 102.18. In addition, the growth of sales from quarter to quarter is recording 87.00%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Embraer S.A. (ERJ) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -2.00% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.10 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while ERJ is currently recording an average of 711.79K in volumes. The volatility of the stock on monthly basis is set at 2.10%, while the weekly volatility levels are marked at 2.96%with -2.01% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $24.27, indicating growth from the present price of $16.56, which can represent yet another valuable research and analysis points that can help you decide whether to invest in ERJ or pass.

What to Look for When Analyzing Embraer S.A. Shares?

Embraer S.A. (ERJ) is based in the Brazil and it represents one of the well-known company operating with Industrial Goods sector. If you wish to compare ERJ shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for Embraer S.A., while the value 15.15 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -0.35 is supported by the yearly ESP growth of -178.70%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 12.40%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 45.40% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in ERJ Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in ERJ in the recent period. That is how Brandes Investment Partners LP now has an increase position in ERJ by 0.46% in the first quarter, owning 20.02 million shares of ERJ stocks, with the value of $345.42 million after the purchase of an additional 92,637 shares during the last quarter. In the meanwhile, Mondrian Investment Partners Ltd. also increased their stake in ERJ shares changed 11.08% in the first quarter, which means that the company now owns 13.9 million shares of company, all valued at $239.78 million after the acquisition of additional 1,385,984 shares during the last quarter.

Hotchkis & Wiley Capital Manageme acquired a new position in Embraer S.A. during the first quarter, with the value of $164.6 million, and Dimensional Fund Advisors LP increased their stake in the company’s shares by 4.33% in the first quarter, now owning 162,745 shares valued at $67.61 million after the acquisition of the additional 3.92 million shares during the last quarter. In the end, Holowesko Partners Ltd. increased their position by 1.13% during the first quarter, now owning 2.3 million ERJ shares, now holding the value of $39.69 million in ERJ with the purchase of the additional 0 shares during the period of the last quarter. At the present, 45.40% of ERJ shares are in the ownership of institutional investors.