AAON (NASDAQ:AAON) Issues Quarterly Earnings Results

Key Points

• AAON reported quarterly earnings of $0.22 per share, missing the consensus estimate of $0.35 by $0.13, while maintaining a return on equity of 20.23%.
• The company announced a quarterly dividend of $0.10 per share, yielding 0.5% annually, with a payout ratio of 21.05%.
• Institutional investors currently hold 70.81% of AAON stock, with notable increases in holdings from firms like Millennium Management and Goldman Sachs Group.

AAON (NASDAQ:AAON - Get Free Report) announced its quarterly earnings results on Monday. The construction company reported $0.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.09), Zacks reports. The firm had revenue of $311.57 million during the quarter, compared to analysts' expectations of $326.15 million. AAON had a net margin of 9.70% and a return on equity of 15.45%. The firm's revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.62 EPS.

AAON Stock Down 5.9%

Shares of AAON stock traded down $5.18 during trading hours on Thursday, reaching $83.11. 1,280,516 shares of the company's stock were exchanged, compared to its average volume of 1,021,149. The stock's 50 day moving average is $78.12 and its 200-day moving average is $88.01. The company has a market cap of $6.78 billion, a price-to-earnings ratio of 56.54 and a beta of 0.94. The company has a current ratio of 3.10, a quick ratio of 1.80 and a debt-to-equity ratio of 0.38. AAON has a fifty-two week low of $62.00 and a fifty-two week high of $144.07.

AAON Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.5%. AAON's payout ratio is presently 27.21%.

Insider Activity

In other news, Director Gordon Douglas Wichman sold 21,302 shares of the company's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $104.48, for a total transaction of $2,225,632.96. Following the transaction, the director directly owned 8,754 shares of the company's stock, valued at approximately $914,617.92. This represents a 70.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 18.70% of the company's stock.

Hedge Funds Weigh In On AAON

A number of large investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased its position in shares of AAON by 20.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 430,936 shares of the construction company's stock valued at $33,669,000 after acquiring an additional 73,644 shares during the period. Sei Investments Co. lifted its stake in AAON by 68.1% during the 2nd quarter. Sei Investments Co. now owns 360,204 shares of the construction company's stock valued at $26,565,000 after acquiring an additional 145,959 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in AAON by 5.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 233,002 shares of the construction company's stock valued at $18,204,000 after acquiring an additional 12,489 shares during the period. California Public Employees Retirement System lifted its stake in AAON by 2.5% during the 2nd quarter. California Public Employees Retirement System now owns 95,655 shares of the construction company's stock valued at $7,055,000 after acquiring an additional 2,339 shares during the period. Finally, Millennium Management LLC lifted its stake in AAON by 429.3% during the 1st quarter. Millennium Management LLC now owns 81,145 shares of the construction company's stock valued at $6,340,000 after acquiring an additional 65,813 shares during the period. 70.81% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently issued reports on AAON shares. Wall Street Zen upgraded AAON from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Sidoti raised shares of AAON from a "neutral" rating to a "buy" rating and set a $95.00 price objective for the company in a research note on Monday, June 16th. DA Davidson reduced their price objective on shares of AAON from $125.00 to $105.00 and set a "buy" rating for the company in a research note on Tuesday. Finally, Robert W. Baird reduced their price objective on shares of AAON from $102.00 to $98.00 and set a "buy" rating for the company in a research note on Tuesday. One equities research analyst has rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $102.00.

About AAON

AAON, Inc, together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.