AAR (NYSE:AIR) Hits New 1-Year High - Should You Buy?

Key Points

• AAR shares reached a new 52-week high of $147.88 and last traded at $146.67, well above their 50-day and 200-day moving averages.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating, though the $135.60 average price target is below the current share price; targets from Jefferies and Truist were recently raised.
• AAR exceeded quarterly expectations, reporting adjusted earnings of $1.53 per share versus $1.38 expected and revenue of $928 million, up 23% year over year. The stock trades at approximately 30.5 times earnings, suggesting investors are paying a premium for its growth.

Shares of AAR Corp. (NYSE:AIR - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $147.88 and last traded at $146.67, with a volume of 9639 shares trading hands. The stock had previously closed at $143.06.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Weiss Ratings raised shares of AAR from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, July 23rd. Zacks Research raised AAR from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 10th. Jefferies Financial Group upped their price objective on shares of AAR from $150.00 to $155.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Truist Financial lifted their price target on AAR from $128.00 to $145.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Finally, Wall Street Zen cut AAR from a "buy" rating to a "hold" rating in a research note on Saturday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $135.60.

AAR Stock Performance

The stock's 50-day simple moving average is $130.69 and its 200-day simple moving average is $118.12. The stock has a market cap of $5.87 billion, a price-to-earnings ratio of 30.47 and a beta of 1.11. The company has a current ratio of 2.84, a quick ratio of 1.24 and a debt-to-equity ratio of 0.52.

AAR (NYSE:AIR - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.38 by $0.15. The company had revenue of $928.00 million during the quarter, compared to the consensus estimate of $893.03 million. AAR had a net margin of 5.67% and a return on equity of 12.67%. The firm's quarterly revenue was up 23.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.16 earnings per share. Analysts forecast that AAR Corp. will post 5.92 earnings per share for the current fiscal year.

Hedge Funds Weigh In On AAR

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lido Advisors LLC raised its holdings in shares of AAR by 2.8% during the fourth quarter. Lido Advisors LLC now owns 3,618 shares of the aerospace company's stock valued at $318,000 after acquiring an additional 98 shares during the last quarter. Smartleaf Asset Management LLC raised its position in shares of AAR by 12.2% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,162 shares of the aerospace company's stock valued at $97,000 after buying an additional 126 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in AAR by 1.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 8,073 shares of the aerospace company's stock valued at $884,000 after acquiring an additional 132 shares during the last quarter. CWM LLC boosted its holdings in shares of AAR by 19.3% during the 4th quarter. CWM LLC now owns 950 shares of the aerospace company's stock worth $79,000 after purchasing an additional 154 shares during the last quarter. Finally, Assetmark Inc. grew its position in shares of AAR by 10.7% in the first quarter. Assetmark Inc. now owns 1,606 shares of the aerospace company's stock valued at $176,000 after purchasing an additional 155 shares in the last quarter. 90.74% of the stock is owned by institutional investors and hedge funds.

AAR Company Profile

AAR Corp. NYSE: AIR is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.

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