CAE (NYSE:CAE) Shares Up 4.5% After Better-Than-Expected Earnings

CAE Inc. (NYSE:CAE) (TSE:CAE) shares shot up 4.5% on Wednesday following a stronger than expected earnings report. The stock traded as high as $17.70 and last traded at $17.52. 132,488 shares were traded during mid-day trading, a decline of 77% from the average session volume of 588,727 shares. The stock had previously closed at $16.76.

The aerospace company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.01. CAE had a positive return on equity of 6.10% and a negative net margin of 6.97%. The business had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.05 billion. During the same period in the previous year, the firm posted $0.18 EPS. The company’s quarterly revenue was up 6.0% on a year-over-year basis.

Analyst Ratings Changes

Several brokerages recently commented on CAE. StockNews.com downgraded shares of CAE from a “buy” rating to a “hold” rating in a research report on Wednesday, May 22nd. Canaccord Genuity Group restated a “hold” rating on shares of CAE in a report on Wednesday, May 22nd. The Goldman Sachs Group lifted their price target on CAE from $25.00 to $29.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. Canaccord Genuity Group lowered CAE from a “buy” rating to a “hold” rating in a research report on Wednesday, May 22nd. Finally, Royal Bank of Canada lowered CAE from a “moderate buy” rating to a “hold” rating in a research report on Tuesday, July 2nd. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $30.25.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. DekaBank Deutsche Girozentrale increased its stake in shares of CAE by 2.6% during the 4th quarter. DekaBank Deutsche Girozentrale now owns 31,621 shares of the aerospace company’s stock worth $678,000 after purchasing an additional 790 shares during the last quarter. Sequoia Financial Advisors LLC increased its position in CAE by 6.3% during the fourth quarter. Sequoia Financial Advisors LLC now owns 22,870 shares of the aerospace company’s stock worth $494,000 after buying an additional 1,361 shares during the last quarter. Stanley Laman Group Ltd. bought a new position in CAE during the fourth quarter valued at about $1,792,000. Coombe Bender & Co LLC raised its holdings in CAE by 15.6% during the fourth quarter. Coombe Bender & Co LLC now owns 184,362 shares of the aerospace company’s stock valued at $3,980,000 after buying an additional 24,865 shares in the last quarter. Finally, Natixis Advisors L.P. boosted its stake in shares of CAE by 12.2% during the 4th quarter. Natixis Advisors L.P. now owns 792,164 shares of the aerospace company’s stock worth $17,102,000 after acquiring an additional 85,884 shares in the last quarter. 67.36% of the stock is owned by institutional investors and hedge funds.

CAE Stock Performance

The stock has a fifty day moving average price of $18.25 and a 200 day moving average price of $19.18. The company has a current ratio of 0.85, a quick ratio of 0.61 and a debt-to-equity ratio of 0.64. The firm has a market cap of $5.55 billion, a price-to-earnings ratio of -24.15, a price-to-earnings-growth ratio of 1.25 and a beta of 1.67.

About CAE

CAE Inc, together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, Oceania and Africa, and Rest of Americas. It operates through three segments: Civil Aviation, Defense and Security, and Healthcare.