CAE (NYSE:CAE) Downgraded to “Hold” Rating by Royal Bank Of Canada

Royal Bank Of Canada downgraded shares of CAE (NYSE:CAE) (TSE:CAE) from a moderate buy rating to a hold rating in a research report sent to investors on Monday,Zacks.com reports.

Other equities research analysts also recently issued reports about the stock. National Bank Financial restated an “outperform” rating on shares of CAE in a research note on Friday. TD Securities restated a “buy” rating on shares of CAE in a research note on Tuesday, February 17th. Stifel Nicolaus began coverage on shares of CAE in a research note on Wednesday, March 4th. They issued a “buy” rating for the company. Scotiabank reiterated an “outperform” rating on shares of CAE in a research note on Tuesday, February 17th. Finally, Jefferies Financial Group lowered their price objective on shares of CAE from $31.00 to $27.00 and set a “hold” rating for the company in a research note on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $32.00.

CAE Price Performance

Shares of CAE opened at $23.80 on Monday. The company has a market cap of $7.65 billion, a price-to-earnings ratio of 33.52, a price-to-earnings-growth ratio of 2.60 and a beta of 1.03. CAE has a twelve month low of $22.76 and a twelve month high of $34.24. The company has a quick ratio of 0.77, a current ratio of 0.96 and a debt-to-equity ratio of 0.55. The company has a 50 day moving average of $26.33 and a two-hundred day moving average of $28.60.

CAE (NYSE:CAE) (TSE:CAE) last announced its earnings results on Thursday, May 21st. The aerospace company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.01. The company had revenue of $953.79 million during the quarter, compared to the consensus estimate of $924.83 million. CAE had a net margin of 6.36% and a return on equity of 7.45%. CAE’s revenue was up 4.0% compared to the same quarter last year. During the same period last year, the firm earned $0.47 earnings per share. CAE has set its FY 2027 guidance at 0.880-0.930 EPS. As a group, analysts predict that CAE will post 0.91 earnings per share for the current fiscal year.

Institutional Investors Weigh In On CAE

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE lifted its position in CAE by 22.0% during the first quarter. Bank of America Corp DE now owns 1,701,002 shares of the aerospace company’s stock valued at $44,311,000 after purchasing an additional 307,265 shares during the period. Anson Funds Management LP lifted its position in CAE by 93.1% during the first quarter. Anson Funds Management LP now owns 280,000 shares of the aerospace company’s stock valued at $7,296,000 after purchasing an additional 135,000 shares during the period. Janus Henderson Group PLC lifted its position in CAE by 6.1% during the first quarter. Janus Henderson Group PLC now owns 52,104 shares of the aerospace company’s stock valued at $1,355,000 after purchasing an additional 3,000 shares during the period. Amundi lifted its position in CAE by 58.5% during the first quarter. Amundi now owns 587,632 shares of the aerospace company’s stock valued at $15,308,000 after purchasing an additional 216,824 shares during the period. Finally, Quantinno Capital Management LP lifted its position in CAE by 33.8% during the first quarter. Quantinno Capital Management LP now owns 144,071 shares of the aerospace company’s stock valued at $3,753,000 after purchasing an additional 36,372 shares during the period. 67.36% of the stock is currently owned by institutional investors and hedge funds.

CAE News Roundup

Here are the key news stories impacting CAE this week:

• Positive Sentiment: Scotiabank raised its FY2027 EPS estimate to $0.91 from $0.88 and kept an Outperform rating, signaling confidence in CAE’s medium-term earnings trajectory.
• Positive Sentiment: Scotiabank also lifted its near-term Q1 2027, Q2 2027, Q3 2027 and FY2030 earnings estimates, and kept FY2028–FY2030 forecasts relatively strong, which supports the long-term growth story.
• Neutral Sentiment: The company’s recent earnings-call recap emphasized a “reset year” and longer-term ambition, suggesting management is balancing short-term execution with future growth plans. CAE Inc. Earnings Call: Reset Year, Long-Term Ambition
• Negative Sentiment: Scotiabank trimmed its Q4 2027, Q2 2028, Q4 2028, and FY2029 EPS estimates, indicating some caution around later-period profitability.
• Negative Sentiment: RBC’s cut to a Sector Perform rating from a more bullish stance may have added to investor caution, even though the new target still implies meaningful upside.

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.