CAE (NYSE:CAE) Sets New 1-Year Low – Here’s Why

CAE Inc (NYSE:CAEGet Free Report) (TSE:CAE) shares hit a new 52-week low during trading on Friday . The stock traded as low as $23.93 and last traded at $24.5770, with a volume of 207199 shares changing hands. The stock had previously closed at $26.94.

Trending Headlines about CAE

Here are the key news stories impacting CAE this week:

  • Positive Sentiment: CAE beat fiscal Q4 estimates, reporting EPS of $0.31 versus $0.30 expected and revenue of $953.8 million versus $924.8 million expected, showing better-than-anticipated demand in the quarter. Article Title
  • Positive Sentiment: The company said defense deals and cost cutting should drive a significant profit surge, and it outlined a transformation plan targeting $125 million to $150 million in annual run-rate savings by fiscal 2030. Article Title
  • Neutral Sentiment: CAE updated FY2027 EPS guidance to 0.880-0.930, which is close to the consensus estimate of 0.890, suggesting the outlook was not dramatically above expectations. Article Title
  • Negative Sentiment: Management warned that conflict in the Middle East could continue to batter earnings, adding geopolitical risk to the outlook. Article Title
  • Negative Sentiment: Although revenue grew year over year, diluted EPS for the quarter fell to $0.23 from $0.47 a year ago, highlighting pressure on profitability despite higher sales. Article Title

Wall Street Analyst Weigh In

Several brokerages have commented on CAE. Jefferies Financial Group dropped their price objective on CAE from $31.00 to $27.00 and set a “hold” rating on the stock in a report on Friday, April 17th. Stifel Nicolaus initiated coverage on CAE in a report on Wednesday, March 4th. They issued a “buy” rating on the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of CAE in a research note on Friday, May 15th. Zacks Research upgraded CAE from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 13th. Finally, Canaccord Genuity Group assumed coverage on CAE in a research note on Friday, March 13th. They issued a “buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $33.33.

Get Our Latest Stock Analysis on CAE

CAE Trading Down 13.0%

The company has a 50 day moving average of $26.58 and a 200 day moving average of $28.69. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.69 and a current ratio of 0.91. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of 28.22, a P/E/G ratio of 3.07 and a beta of 1.03.

Hedge Funds Weigh In On CAE

A number of institutional investors have recently added to or reduced their stakes in the stock. Brandes Investment Partners LP lifted its position in CAE by 1.1% during the fourth quarter. Brandes Investment Partners LP now owns 15,157,988 shares of the aerospace company’s stock worth $461,107,000 after buying an additional 168,074 shares in the last quarter. Vanguard Group Inc. lifted its position in CAE by 1.7% during the fourth quarter. Vanguard Group Inc. now owns 13,380,797 shares of the aerospace company’s stock worth $406,923,000 after buying an additional 229,270 shares in the last quarter. FIL Ltd lifted its position in CAE by 21.9% during the fourth quarter. FIL Ltd now owns 10,422,522 shares of the aerospace company’s stock worth $316,955,000 after buying an additional 1,874,739 shares in the last quarter. Select Equity Group L.P. lifted its position in CAE by 0.6% during the second quarter. Select Equity Group L.P. now owns 7,909,738 shares of the aerospace company’s stock worth $231,350,000 after buying an additional 45,754 shares in the last quarter. Finally, Snyder Capital Management L P lifted its position in CAE by 0.6% during the fourth quarter. Snyder Capital Management L P now owns 5,441,338 shares of the aerospace company’s stock worth $165,526,000 after buying an additional 30,235 shares in the last quarter. Hedge funds and other institutional investors own 67.36% of the company’s stock.

CAE Company Profile

(Get Free Report)

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.

Further Reading

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