CAE (NYSE:CAE) Shares Gap Up – Should You Buy?

CAE Inc (NYSE:CAE) (TSE:CAE) shares gapped up before the market opened on Monday . The stock had previously closed at $26.18, but opened at $27.18. CAE shares last traded at $27.1390, with a volume of 136,979 shares changing hands.

Analysts Set New Price Targets

Several equities analysts have commented on CAE shares. Morgan Stanley downgraded CAE from an “equal weight” rating to an “underweight” rating in a research report on Wednesday, July 15th. Royal Bank Of Canada lowered their target price on shares of CAE from $42.00 to $36.00 and set a “sector perform” rating for the company in a research note on Tuesday, May 26th. Wall Street Zen cut shares of CAE from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. Jefferies Financial Group reiterated a “hold” rating on shares of CAE in a report on Thursday, August 13th. Finally, Weiss Ratings cut shares of CAE from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, July 23rd. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $31.00.

CAE Stock Performance

The business has a 50-day moving average of $25.66 and a two-hundred day moving average of $26.89. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.96 and a quick ratio of 0.77. The company has a market cap of $8.36 billion, a P/E ratio of 36.65, a P/E/G ratio of 2.85 and a beta of 1.01.

CAE (NYSE:CAE) (TSE:CAE) last announced its earnings results on Wednesday, August 12th. The aerospace company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.02. CAE had a net margin of 6.36% and a return on equity of 7.45%. The business had revenue of $826.42 million during the quarter, compared to the consensus estimate of $796.86 million. During the same period in the previous year, the company posted $0.21 earnings per share. The firm’s revenue was up 6.8% on a year-over-year basis. CAE has set its FY 2027 guidance at 0.870-0.920 EPS. On average, sell-side analysts predict that CAE Inc will post 0.87 EPS for the current fiscal year.

Institutional Investors Weigh In On CAE

Several institutional investors have recently bought and sold shares of the company. Millennium Management LLC acquired a new position in shares of CAE during the first quarter worth $4,170,000. Goldman Sachs Group Inc. increased its position in CAE by 142.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,709,480 shares of the aerospace company’s stock valued at $42,036,000 after buying an additional 1,004,820 shares in the last quarter. United Services Automobile Association raised its stake in CAE by 4.5% in the first quarter. United Services Automobile Association now owns 10,822 shares of the aerospace company’s stock valued at $265,000 after buying an additional 462 shares during the last quarter. Prudential Financial Inc. acquired a new stake in CAE in the second quarter worth about $287,000. Finally, Marshall Wace LLP acquired a new position in shares of CAE during the second quarter valued at about $3,655,000. 67.36% of the stock is currently owned by institutional investors and hedge funds.

CAE Company Profile

CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms.

In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions.