Embraer (ERJ, $21.12) To Sell 80% Commercial Aviation To Boeing (BA, $318.75)
On Monday, Embraer announced that it finalized the terms of a proposed deal to sell 80% of its commercial aviation business to Boeing Co. As of now, the Brazilian aircraft manufacturer's commercial aviation unit is valued at $5.26 billion - that’s higher than the $4.75 billion estimated when the deal was originally announced in July.
The sale could fetch Embraer around $3 billion after accounting for closing costs. The deal is still subject to shareholder approvals at both Embraer and Boeing. Embraer's board Monday put forth the proposed deal for approval from the Brazilian government.
Additionally, Embrarer revealed plans of a joint venture with Boeing on promoting defense plane KC-390. Embraer will have 51% ownership of the operation.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
EMBJ's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for EMBJ turned positive on July 28, 2026. Looking at past instances where EMBJ's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 27, 2026. You may want to consider a long position or call options on EMBJ as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for EMBJ moved above the 200-day moving average on August 14, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EMBJ advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 270 cases where EMBJ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EMBJ moved out of overbought territory on August 20, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where EMBJ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
EMBJ broke above its upper Bollinger Band on August 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EMBJ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.908) is normal, around the industry mean (6.821). P/E Ratio (30.794) is within average values for comparable stocks, (60.208). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (8.077). Dividend Yield (0.010) settles around the average of (0.017) among similar stocks. P/S Ratio (1.647) is also within normal values, averaging (19.956).
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General Information
a manufacturer of passenger aircrafts
Industry AerospaceDefense
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