StockNews.com Upgrades CAE (NYSE:CAE) to Strong-Buy

CAE (NYSE:CAE) (TSE:CAE) was upgraded by research analysts at StockNews.com from a “buy” rating to a “strong-buy” rating in a research note issued on Monday.

Several other brokerages have also recently weighed in on CAE. Scotiabank raised CAE from a “sector perform” rating to a “sector outperform” rating in a report on Thursday. National Bank Financial upgraded CAE from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 6th. Jefferies Financial Group dropped their price target on CAE from $28.00 to $27.00 and set a “hold” rating on the stock in a research note on Friday. Royal Bank of Canada reaffirmed an “outperform” rating and set a $43.00 price target on shares of CAE in a research report on Wednesday, March 12th. Finally, CIBC reissued a “neutral” rating on shares of CAE in a report on Thursday. Eight research analysts have rated the stock with a hold rating, five have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $34.00.

CAE Stock Performance

Shares of CAE stock traded up $0.07 during trading on Monday, reaching $25.45. 185,700 shares of the company’s stock were exchanged, compared to its average volume of 570,001. The company has a quick ratio of 0.63, a current ratio of 0.86 and a debt-to-equity ratio of 0.70. The stock has a market capitalization of $8.15 billion, a PE ratio of -48.94, a PEG ratio of 1.94 and a beta of 1.26. CAE has a twelve month low of $15.95 and a twelve month high of $27.62. The firm’s fifty day moving average price is $24.26 and its 200-day moving average price is $23.83.

CAE (NYSE:CAE) (TSE:CAE) last released its quarterly earnings results on Tuesday, May 13th. The aerospace company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.01. The business had revenue of $886.20 million during the quarter, compared to the consensus estimate of $1.30 billion. CAE had a positive return on equity of 6.11% and a negative net margin of 4.96%. The firm’s quarterly revenue was up 13.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.37 EPS. As a group, sell-side analysts anticipate that CAE will post 0.83 EPS for the current year.

Institutional Investors Weigh In On CAE

Several large investors have recently added to or reduced their stakes in the business. Nomura Holdings Inc. purchased a new stake in CAE during the fourth quarter valued at about $201,771,000. Browning West LP raised its position in CAE by 131.4% during the first quarter. Browning West LP now owns 13,734,943 shares of the aerospace company’s stock valued at $337,742,000 after purchasing an additional 7,800,012 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec raised its position in CAE by 25.7% during the fourth quarter. Caisse DE Depot ET Placement DU Quebec now owns 30,917,402 shares of the aerospace company’s stock valued at $784,651,000 after purchasing an additional 6,313,165 shares in the last quarter. Select Equity Group L.P. raised its position in CAE by 427.1% during the fourth quarter. Select Equity Group L.P. now owns 6,741,514 shares of the aerospace company’s stock valued at $171,093,000 after purchasing an additional 5,462,455 shares in the last quarter. Finally, Norges Bank purchased a new stake in CAE during the fourth quarter valued at about $98,436,000. Institutional investors own 67.36% of the company’s stock.

CAE Company Profile

CAE Inc, together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions.