Embraer (NYSE:ERJ) Shares Gap Down – Should You Sell?

Embraer S.A. (NYSE:ERJ) gapped down before the market opened on Tuesday . The stock had previously closed at $38.81, but opened at $36.90. Embraer shares last traded at $37.06, with a volume of 538,536 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on ERJ shares. TD Cowen upgraded shares of Embraer from a “hold” rating to a “buy” rating and increased their target price for the company from $26.00 to $41.00 in a research report on Wednesday, September 4th. Bank of America reiterated a “buy” rating and issued a $40.00 price objective on shares of Embraer in a report on Tuesday, September 17th. Finally, UBS Group cut Embraer from a “neutral” rating to a “sell” rating and boosted their target price for the stock from $29.00 to $32.00 in a report on Tuesday. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $35.29.

Embraer Trading Down 0.5 %

The firm has a market capitalization of $6.89 billion, a price-to-earnings ratio of 13.79 and a beta of 1.70. The company has a quick ratio of 0.76, a current ratio of 1.56 and a debt-to-equity ratio of 0.74. The firm’s 50 day moving average is $35.26 and its 200 day moving average is $31.59.

Institutional Investors Weigh In On Embraer

A number of institutional investors and hedge funds have recently modified their holdings of ERJ. Townsquare Capital LLC lifted its holdings in shares of Embraer by 1.2% in the third quarter. Townsquare Capital LLC now owns 26,007 shares of the aerospace company’s stock valued at $920,000 after purchasing an additional 310 shares in the last quarter. Angeles Investment Advisors LLC lifted its stake in Embraer by 3.0% in the 3rd quarter. Angeles Investment Advisors LLC now owns 11,753 shares of the aerospace company’s stock worth $416,000 after acquiring an additional 338 shares in the last quarter. LVW Advisors LLC boosted its position in Embraer by 3.4% during the 3rd quarter. LVW Advisors LLC now owns 10,320 shares of the aerospace company’s stock worth $365,000 after acquiring an additional 340 shares during the period. Pinnacle Associates Ltd. grew its stake in Embraer by 0.6% during the 2nd quarter. Pinnacle Associates Ltd. now owns 63,435 shares of the aerospace company’s stock valued at $1,637,000 after acquiring an additional 385 shares in the last quarter. Finally, Commonwealth Equity Services LLC increased its holdings in shares of Embraer by 1.8% in the 2nd quarter. Commonwealth Equity Services LLC now owns 22,209 shares of the aerospace company’s stock valued at $573,000 after purchasing an additional 390 shares during the period. Institutional investors and hedge funds own 34.65% of the company’s stock.

About Embraer

Embraer SA designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft.