CECO Environmental (NASDAQ:CECO) Shares Gap Down After Earnings Miss

CECO Environmental Corp. (NASDAQ:CECO)’s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. 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 traded.

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

Analyst Ratings Changes

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

Institutional Trading of CECO Environmental

A number of hedge funds and other institutional investors have recently bought and sold shares of CECO. American Century Companies Inc. increased its holdings in shares of CECO Environmental by 16,844.6% in the 3rd quarter. American Century Companies Inc. now owns 1,257,796 shares of the company’s stock valued at $64,399,000 after acquiring an additional 1,250,373 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in CECO Environmental by 104.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 718,992 shares of the company’s stock valued at $43,032,000 after purchasing an additional 366,611 shares in the last quarter. Capital World Investors acquired a new position in CECO Environmental in the fourth quarter valued at approximately $19,936,000. Two Sigma Investments LP raised its holdings in CECO Environmental by 3,620.8% during the third quarter. Two Sigma Investments LP now owns 302,691 shares of the company’s stock worth $15,498,000 after purchasing an additional 294,556 shares in the last quarter. Finally, IES Holdings Inc. acquired a new stake in CECO Environmental during the fourth quarter worth approximately $16,963,000. 68.08% of the stock is currently owned by institutional investors and hedge funds.

CECO Environmental Stock Down 16.2%

The firm’s 50-day moving average price is $67.10 and its two-hundred day moving average price is $56.15. 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 cap of $2.32 billion, a PE ratio of 46.00 and a beta of 1.38.

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.