CAE (NYSE:CAE) Shares Gap Up After Earnings Beat

CAE Inc. (NYSE:CAE - Get Free Report) TSE: CAE gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $23.51, but opened at $25.00. CAE shares last traded at $26.77, with a volume of 384,357 shares trading hands.

The aerospace company reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.01. CAE had a negative net margin of 7.49% and a positive return on equity of 5.79%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on CAE. National Bank Financial downgraded shares of CAE from an "outperform" rating to a "sector perform" rating in a report on Wednesday, January 22nd. Royal Bank of Canada raised their price target on shares of CAE from $38.00 to $43.00 and gave the company an "outperform" rating in a report on Tuesday. StockNews.com cut shares of CAE from a "buy" rating to a "hold" rating in a research report on Tuesday, February 11th. Desjardins upgraded CAE from a "hold" rating to a "buy" rating in a research report on Monday, December 23rd. Finally, Cibc World Mkts downgraded CAE from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, December 4th. Eight research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $32.00.

Hedge Funds Weigh In On CAE

Institutional investors have recently modified their holdings of the stock. Asset Planning Inc bought a new position in CAE during the 4th quarter worth approximately $30,000. Cromwell Holdings LLC raised its holdings in CAE by 103.4% in the third quarter. Cromwell Holdings LLC now owns 1,800 shares of the aerospace company's stock worth $34,000 after purchasing an additional 915 shares during the period. Natixis bought a new position in shares of CAE during the fourth quarter worth $38,000. Venturi Wealth Management LLC acquired a new position in CAE in the third quarter valued at about $74,000. Finally, Allworth Financial LP grew its position in shares of CAE by 26.1% in the 3rd quarter. Allworth Financial LP now owns 6,408 shares of the aerospace company's stock valued at $120,000 after purchasing an additional 1,327 shares during the period. 67.36% of the stock is currently owned by institutional investors and hedge funds.

CAE Price Performance

The company's fifty day moving average price is $24.18 and its two-hundred day moving average price is $20.91. The company has a market cap of $8.55 billion, a price-to-earnings ratio of -34.75, a PEG ratio of 1.79 and a beta of 1.72. The company has a quick ratio of 0.59, a current ratio of 0.84 and a debt-to-equity ratio of 0.62.

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, 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.