Embraer S.A. (NYSE:ERJ) finished Wednesday with an addition of $0.47 to close at $15.93, an upside of 3.04 percent. An average of 1,681,260 shares of common stock have been traded in the last five days. There was a gain of $1.29 in the past week, and it reached a new high 29 times over the past 12 months. The last 20 days have seen an average of 1,540,420 shares traded, while the 50-day average volume stands at 1,473,610.
ERJ stock has increased by 4.12% in the last month. The company shares reached their 1-month lowest point of $14.11 on 08/14/23. With the stock rallying to its 52-week high on 06/15/23, shares of the company touched a low of $8.52 and a high of $17.14 in 52 weeks. It has reached a new high 32 times so far this year and achieved 45.75% or $5.00 in price. In spite of this, the price is down -7.06% from the 52-week high.
Valuation Metrics
Embraer S.A. (ERJ) stock’s beta is 1.30. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.57, the price-to-book (PB) ratio at 1.20.
Financial Health
The quick ratio of Embraer S.A. for the recent quarter was 0.80, and the current ratio was 1.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.07 and a total debt to equity ratio of 1.42 for the recent quarter. Embraer S.A.’s EBITDA margin is 8.71%, while its operating margin for the same period stands at 3.50%. Its gross profit as reported stood at $912.2 million compared to revenue of $4.54 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Embraer S.A.’s return on assets was -1.00%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$185.4 million in the quarter, while revenues were grew 75.89%.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Embraer S.A. (ERJ) price momentum. RSI 9-day as of the close on 23 August was 73.54%, suggesting the stock is Overbought, with historical volatility in this time frame at 22.51%.
As of today, ERJ’s price is $15.26 +8.81% or $1.29 from its 5-day moving average. ERJ is currently trading +3.17% higher than its 20-day SMA and -2.39% lower than its 100-day SMA. However, the stock’s current price level is -1.06% below the SMA50 and +51.14% above the SMA200.
The stochastic %K and %D were 80.77% and 65.59%, respectively, and the average true range (ATR) was 0.52. With the 14-day stochastic at 89.66% and the average true range at 0.51, the RSI (14) stands at 64.97%. The stock has reached 0.46 on the 9-day MACD Oscillator while the 14-day reading was at 0.60.
Analyst Ratings
UBS launched coverage on Embraer S.A. (NYSE: ERJ) in its analyst report released on January 09, 2023. The firm assigned the stock a Buy rating. The consensus rating for Embraer S.A. (ERJ) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ERJ, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 11 others rate it as a “buy”.
What is ERJ’s price target for the next 12 months?
Analysts predict a range of price targets between $15.00 and $28.00, with a median target of $19.75. Taking a look at these predictions, the average price target given by analysts for Embraer S.A. (ERJ) stock is $20.38.
