The stock of Embraer S.A. (NYSE:ERJ) is now priced at $5.86 and the shares are 0.06 points up or 1.03% higher compared to its previous closing price of $5.8. The stock had 4.282 million contracts set over the past session. ERJ shares’ daily volume is compared to its average trading volume at 3.794 million shares. However, it has a float of 175 million and although its performance was 1.58% over the week, it’s one to watch. Analysts have given the ERJ stock a yearly average price target of $7.1 per share. It means the stock’s upside potential is 21.16% with the ERJ share price recently placing at $5.55 to $5.81. However, some brokerage firms have priced the stock below the average, including one that has called $4.
The shorts are running away from the Embraer S.A. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the ERJ shares have declined. Short interest in the stock represents just 2.03% of its float, but the volume has dropped by 0.
In the last trading session, Embraer S.A. (NYSE:ERJ) raised by $0.24 over the week and lost -$0.14 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $20.24. The stock recorded its established 52-week high on 01/08/20.
Since 05/14/20, the stock has traded to a low of $3.99 at 46.87%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.43. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Embraer S.A.’s two-week RSI is 44.17. This suggests that the stock is neutral at the moment and that ERJ shares’ price movement remains stable. The stochastic readings are equally revealing at 25.72% meaning the ERJ share price is currently in overbought territory.
The technical chart shows that the ERJ stock will likely settle at between $6.05 and $6.23 per share. However, if the stock dips below $5.76, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $5.66.
Currently, the stock is trading in the red of MACD, with a reading of -0.03. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Morgan Stanley cut their recommendation for ERJ from Equal-Weight to Underweight in August 11 review. BofA/Merrill analysts downgraded their recommendation of the stock from Buy to Neutral in a flash note released to investors on May 04. Credit Suisse seeing the stock struggling downgraded it from Neutral to Underperform on April 28.
The average rating for the ERJ equity is 2.89 and is currently gathering a bullish momentum. Of 9 analysts tracking Embraer S.A. polled by Reuters, 5 rated ERJ as a hold. The remaining 4 analysts were split evenly. However, the split wasn’t equal as a majority (1) rated it as a buy or strong buy. 3 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 53.2. Embraer S.A. has its P/E ratio at 0.3, which means that the stock is currently trading at a discount relative to the 5 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Embraer S.A. (NYSE:ERJ) will decrease by about -79.84%, which will see them reach $577.7 million. The company’s full-year revenues are, however, expected to diminish by about -30.22%, down from $5460 million to $3810 million. ERJ’s expected adjusted earnings should surge almost 450% to end up at -$0.44 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 22.03% to record -$1.44/share.