CECO Environmental (NASDAQ:CECO) Shares Gap Down on Disappointing Earnings

CECO Environmental Corp. (NASDAQ:CECO) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $77.68, but opened at $73.50. CECO Environmental shares last traded at $65.1720, with a volume of 362,374 shares changing hands.

The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.35). The company had revenue of $214.69 million during the quarter, compared to analyst estimates of $205.39 million. CECO Environmental had a net margin of 7.22% and a return on equity of 10.84%. The business’s revenue was up 35.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.27 EPS.

Analyst Ratings Changes

A number of brokerages have weighed in on CECO. Zacks Research upgraded CECO Environmental from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. Needham & Company LLC lifted their target price on shares of CECO Environmental from $70.00 to $75.00 and gave the company a “buy” rating in a report on Friday, January 16th. Weiss Ratings reiterated a “buy (b-)” rating on shares of CECO Environmental in a research note on Wednesday, January 21st. Finally, Northland Securities lifted their price objective on shares of CECO Environmental from $60.00 to $73.00 and gave the company an “outperform” rating in a research note on Wednesday, December 24th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, CECO Environmental presently has an average rating of “Moderate Buy” and an average price target of $64.75.

Institutional Trading of CECO Environmental

Hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd acquired a new position in shares of CECO Environmental during the third quarter worth about $25,000. Aventura Private Wealth LLC purchased a new stake in CECO Environmental in the 4th quarter valued at approximately $30,000. Advisory Services Network LLC acquired a new position in CECO Environmental during the 3rd quarter worth approximately $31,000. Global Retirement Partners LLC purchased a new position in shares of CECO Environmental during the 3rd quarter worth approximately $50,000. Finally, First Horizon Corp acquired a new stake in shares of CECO Environmental in the 3rd quarter valued at approximately $64,000. Institutional investors and hedge funds own 68.08% of the company’s stock.

CECO Environmental Stock Down 16.2%

The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.13 and a current ratio of 1.33. The firm has a market capitalization of $2.32 billion, a price-to-earnings ratio of 46.00 and a beta of 1.38. The firm has a fifty day moving average price of $67.10 and a 200 day moving average price of $56.15.

About CECO Environmental

CECO Environmental Corp. (NASDAQ: CECO) is a global technology provider specializing in engineered solutions that help industrial and commercial customers manage air emissions, process fluids and optimize energy use. The company develops custom-engineered systems and modular packages designed to meet evolving environmental regulations and improve operational efficiency across diverse production processes.

CECO’s core offerings include air pollution control equipment—such as scrubbers, cyclones, fabric and cartridge filters—and industrial process filtration systems for applications ranging from particulate removal to oil-water separation.