AAR (AIR) Hits New 1-Year High on Earnings Beat

AAR Corp. (NYSE:AIR)’s share price reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $50.77 and last traded at $50.93, with a volume of 18996 shares. The stock had previously closed at $48.09.

The aerospace company reported $0.54 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.02. AAR had a return on equity of 7.29% and a net margin of 1.08%. The company had revenue of $466.30 million during the quarter, compared to analyst estimates of $452.72 million. During the same period in the previous year, the company earned $0.31 earnings per share. The company’s quarterly revenue was up 17.2% compared to the same quarter last year.

A number of brokerages have recently commented on AIR. Noble Financial reiterated a “buy” rating and set a $57.00 price target on shares of AAR in a report on Thursday. Canaccord Genuity upped their price target on AAR from $52.00 to $53.00 and gave the stock a “buy” rating in a report on Wednesday. ValuEngine upgraded AAR from a “hold” rating to a “buy” rating in a report on Tuesday, September 18th. Zacks Investment Research lowered AAR from a “buy” rating to a “hold” rating in a report on Wednesday, September 12th. Finally, SunTrust Banks lowered AAR from a “buy” rating to a “hold” rating and cut their price target for the stock from $50.00 to $47.00 in a report on Tuesday, September 11th. Two equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $52.00.

In related news, CAO Eric Pachapa sold 3,000 shares of the company’s stock in a transaction on Thursday, August 2nd. The stock was sold at an average price of $46.75, for a total value of $140,250.00. Following the completion of the transaction, the chief accounting officer now directly owns 9,626 shares in the company, valued at $450,015.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David P. Storch sold 11,764 shares of the company’s stock in a transaction on Friday, July 20th. The shares were sold at an average price of $47.07, for a total value of $553,731.48. Following the completion of the transaction, the director now owns 819,945 shares of the company’s stock, valued at $38,594,811.15. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 102,739 shares of company stock valued at $4,850,280. Corporate insiders own 7.43% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. WINTON GROUP Ltd raised its stake in shares of AAR by 27.5% in the second quarter. WINTON GROUP Ltd now owns 7,665 shares of the aerospace company’s stock valued at $356,000 after purchasing an additional 1,651 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in shares of AAR by 9.0% in the first quarter. Thrivent Financial for Lutherans now owns 21,746 shares of the aerospace company’s stock valued at $959,000 after purchasing an additional 1,793 shares in the last quarter. Federated Investors Inc. PA raised its stake in shares of AAR by 144.1% in the first quarter. Federated Investors Inc. PA now owns 3,146 shares of the aerospace company’s stock valued at $139,000 after purchasing an additional 1,857 shares in the last quarter. Aperio Group LLC raised its stake in shares of AAR by 11.5% in the second quarter. Aperio Group LLC now owns 18,397 shares of the aerospace company’s stock valued at $855,000 after purchasing an additional 1,897 shares in the last quarter. Finally, MetLife Investment Advisors LLC raised its stake in shares of AAR by 17.1% in the second quarter. MetLife Investment Advisors LLC now owns 16,195 shares of the aerospace company’s stock valued at $753,000 after purchasing an additional 2,365 shares in the last quarter. Institutional investors and hedge funds own 93.92% of the company’s stock.

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.83 and a quick ratio of 1.45. The company has a market cap of $1.61 billion, a P/E ratio of 26.33 and a beta of 1.24.

AAR Company Profile (NYSE:AIR)

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The company operates in two segments, Aviation Services and Expeditionary Services. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services.

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