Taking a Fresh Look at Embraer S.A. (ERJ)

Embraer S.A. (ERJ) is an interesting player in the Industrial Goods space, with a focus on Aerospace/Defense Products & Services. The stock has been active on the tape, currently trading at $23.93, down from yesterday’s close by -0.91%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Embraer S.A. (ERJ) currently trades with a market capitalization of $4.47 Billion. That value represents a market adjusting for revenues that have been falling by -15.64 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.46 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.74 on a per share basis this quarter. Perhaps, that suggests something about why 0.00% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Embraer S.A. recorded a 52-week high of $26.14. It is now trading 2.21% off that level. The stock is trading $20.07 its 50-day moving average by -3.86%. The stock carved out a 52-week low down at $17.42.

In recent action, Embraer S.A. (ERJ) has made a move of +25.03% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.68% with $175.64 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ERJ.

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