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

CAE Inc (NYSE:CAE) (TSE:CAE)’s share price hit a new 52-week low during trading on Friday . The company traded as low as $23.93 and last traded at $24.5770, with a volume of 207199 shares traded. The stock had previously closed at $26.94.

CAE News Roundup

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

Analyst Upgrades and Downgrades

A number of brokerages recently commented on CAE. Canaccord Genuity Group began coverage on CAE in a research report on Friday, March 13th. They set a “buy” rating on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of CAE in a research report on Friday, May 15th. TD Securities restated a “buy” rating on shares of CAE in a research report on Tuesday, February 17th. Zacks Research upgraded CAE from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 13th. Finally, Jefferies Financial Group reduced their target price on CAE from $31.00 to $27.00 and set a “hold” rating on the stock in a research report on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $33.33.

CAE Price Performance

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

Institutional Investors Weigh In On CAE

Several institutional investors and hedge funds have recently modified their holdings of CAE. Norges Bank purchased a new stake in shares of CAE in the 4th quarter valued at $98,377,000. FIL Ltd raised its holdings in shares of CAE by 21.9% in the 4th quarter. FIL Ltd now owns 10,422,522 shares of the aerospace company’s stock valued at $316,955,000 after buying an additional 1,874,739 shares during the period. TD Asset Management Inc raised its holdings in shares of CAE by 82.5% in the 4th quarter. TD Asset Management Inc now owns 2,704,860 shares of the aerospace company’s stock valued at $82,364,000 after buying an additional 1,222,581 shares during the period. Morgan Stanley raised its holdings in shares of CAE by 114.0% in the 4th quarter. Morgan Stanley now owns 2,059,644 shares of the aerospace company’s stock valued at $62,654,000 after buying an additional 1,097,193 shares during the period. Finally, Goldman Sachs Group Inc. raised its holdings in shares of CAE by 142.6% in 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 during the period. Hedge funds and other institutional investors own 67.36% of the company’s stock.

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.