CECO Environmental (NASDAQ:CECO) Shares Gap Up on Strong Earnings

CECO Environmental Corp. (NASDAQ:CECO) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $22.65, but opened at $24.35. CECO Environmental shares last traded at $24.26, with a volume of 56,859 shares changing hands.

The company reported $0.27 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.05. The company had revenue of $158.60 million during the quarter, compared to analysts’ expectations of $156.09 million. CECO Environmental had a return on equity of 11.12% and a net margin of 2.16%. CECO Environmental’s quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.28 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. HC Wainwright cut CECO Environmental from a “buy” rating to a “neutral” rating in a report on Friday, January 17th. Craig Hallum boosted their target price on CECO Environmental from $34.00 to $40.00 and gave the company a “buy” rating in a research report on Monday, January 6th. Needham & Company LLC lowered their price target on CECO Environmental from $35.00 to $33.00 and set a “buy” rating for the company in a research report on Wednesday, October 30th. Finally, Northland Securities lifted their target price on CECO Environmental from $35.00 to $38.00 and gave the company an “outperform” rating in a research report on Friday, December 20th. One investment analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $36.20.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CECO. Private Advisor Group LLC increased its position in shares of CECO Environmental by 5.8% during the third quarter. Private Advisor Group LLC now owns 16,065 shares of the company’s stock worth $453,000 after purchasing an additional 885 shares in the last quarter. Van ECK Associates Corp raised its position in CECO Environmental by 466.4% in the 3rd quarter. Van ECK Associates Corp now owns 379,877 shares of the company’s stock valued at $10,082,000 after purchasing an additional 312,803 shares during the last quarter. Principal Financial Group Inc. boosted its stake in CECO Environmental by 17.6% during the 3rd quarter. Principal Financial Group Inc. now owns 22,246 shares of the company’s stock worth $627,000 after purchasing an additional 3,330 shares during the period. Quest Partners LLC acquired a new position in CECO Environmental in the third quarter valued at $69,000. Finally, First Horizon Advisors Inc. raised its holdings in shares of CECO Environmental by 71.6% in the third quarter. First Horizon Advisors Inc. now owns 1,416 shares of the company’s stock valued at $40,000 after buying an additional 591 shares during the last quarter. Institutional investors and hedge funds own 68.08% of the company’s stock.

CECO Environmental Stock Up 10.6 %

The company has a debt-to-equity ratio of 0.50, a current ratio of 1.30 and a quick ratio of 1.12. The firm’s 50 day moving average price is $28.82 and its two-hundred day moving average price is $28.31. The firm has a market cap of $876.01 million, a price-to-earnings ratio of 73.53, a P/E/G ratio of 1.39 and a beta of 1.41.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions.