Stock Traders Buy Large Volume of Embraer Put Options (ERJ)
Embraer SA (NYSE:ERJ) was the target of some unusual options trading on Tuesday. Investors bought 4,581 put options on the company. This is an increase of approximately 1,793% compared to the average daily volume of 242 put options.
ERJ has been the subject of a number of recent analyst reports. Morgan Stanley raised Embraer from an “equal” rating to an “overweight” rating and lifted their price objective for the company from $20.90 to $23.50 in a research report on Thursday, August 16th. Sanford C. Bernstein downgraded Embraer from a “market perform” rating to an “underperform” rating in a research report on Monday, October 1st. Citigroup raised Embraer to an “outperform” rating and lifted their price objective for the company from $23.00 to $28.00 in a research report on Wednesday, September 26th. Bradesco Corretora raised Embraer from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $23.00 to $28.00 in a research report on Wednesday, September 26th. Finally, Bank of America reaffirmed a “buy” rating and issued a $37.00 price objective on shares of Embraer in a research report on Tuesday, July 24th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. Embraer currently has an average rating of “Hold” and an average target price of $27.13.
Institutional investors have recently modified their holdings of the stock. Cedar Wealth Management LLC boosted its holdings in Embraer by 5,730.0% in the third quarter. Cedar Wealth Management LLC now owns 5,830 shares of the aerospace company’s stock valued at $114,000 after acquiring an additional 5,730 shares during the last quarter. TD Asset Management Inc. acquired a new position in Embraer in the second quarter valued at $208,000. PNC Financial Services Group Inc. boosted its holdings in Embraer by 71.3% in the third quarter. PNC Financial Services Group Inc. now owns 9,027 shares of the aerospace company’s stock valued at $177,000 after acquiring an additional 3,756 shares during the last quarter. Holistic Financial Partners acquired a new position in Embraer in the third quarter valued at $207,000. Finally, Harel Insurance Investments & Financial Services Ltd. boosted its holdings in Embraer by 66.5% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 11,763 shares of the aerospace company’s stock valued at $293,000 after acquiring an additional 4,700 shares during the last quarter. Hedge funds and other institutional investors own 46.98% of the company’s stock.
The company also recently announced a special dividend, which was paid on Thursday, October 18th. Investors of record on Thursday, September 27th were issued a $0.0095 dividend. This represents a yield of 0.11%. The ex-dividend date was Wednesday, September 26th. Embraer’s payout ratio is currently 13.16%.
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Embraer SA designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. It operates through Commercial Aviation, Defense and Security, Executive Jets, and Other Related Businesses segments. The Commercial Aviation segment develops, produces, and sells commercial jets; and provides support services, as well as leases aircraft.
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