AAR (NYSE:AIR) Hits New 1-Year High - Time to Buy?

Key Points

• AAR Corp. shares reached a new 52-week high of $87.19, reflecting robust trading activity with more than 514,000 shares exchanged.
• Despite positive earnings results, including an EPS of $1.08 which surpassed estimates, analysts have mixed ratings for the stock, with a notable reduction from "buy" to "hold" from Wall Street Zen.
• Institutional ownership stands at 90.74%, showcasing strong confidence from major investors, with several firms increasing their positions in the company recently.

AAR Corp. (NYSE:AIR - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $86.84 and last traded at $87.19, with a volume of 514243 shares changing hands. The stock had previously closed at $82.66.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Wall Street Zen cut shares of AAR from a "buy" rating to a "hold" rating in a report on Saturday, September 20th. KeyCorp raised their price objective on shares of AAR from $80.00 to $86.00 and gave the stock an "overweight" rating in a research note on Thursday, July 17th. Royal Bank Of Canada reissued an "outperform" rating and set a $85.00 price objective on shares of AAR in a research note on Wednesday. Finally, Truist Financial raised their price objective on shares of AAR from $81.00 to $90.00 and gave the stock a "buy" rating in a research note on Wednesday. Four analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $86.00.

AAR Stock Performance

The company has a market cap of $3.11 billion, a price-to-earnings ratio of 110.58 and a beta of 1.50. The stock's fifty day simple moving average is $75.98 and its two-hundred day simple moving average is $67.28. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.26 and a current ratio of 2.91.

AAR (NYSE:AIR - Get Free Report) last issued its earnings results on Tuesday, September 23rd. The aerospace company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $0.98 by $0.10. AAR had a net margin of 1.01% and a return on equity of 12.29%. The business had revenue of $739.60 million for the quarter, compared to the consensus estimate of $692.47 million. During the same quarter last year, the firm posted $0.50 EPS. The business's revenue for the quarter was up 11.8% compared to the same quarter last year. AAR has set its Q2 2026 guidance at EPS. Equities research analysts anticipate that AAR Corp. will post 3.77 EPS for the current year.

Insider Activity at AAR

In other news, CFO Sean M. Gillen sold 18,000 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $77.37, for a total value of $1,392,660.00. Following the completion of the sale, the chief financial officer owned 99,868 shares of the company's stock, valued at approximately $7,726,787.16. The trade was a 15.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Jessica A. Garascia sold 3,631 shares of AAR stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $77.08, for a total transaction of $279,877.48. Following the completion of the transaction, the chief accounting officer directly owned 39,117 shares of the company's stock, valued at $3,015,138.36. This trade represents a 8.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 95,182 shares of company stock worth $7,331,452 over the last quarter. Company insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of AIR. State Street Corp boosted its holdings in shares of AAR by 10.9% in the 2nd quarter. State Street Corp now owns 1,917,821 shares of the aerospace company's stock valued at $131,927,000 after buying an additional 188,406 shares during the period. Westwood Holdings Group Inc. boosted its stake in AAR by 10.3% during the 1st quarter. Westwood Holdings Group Inc. now owns 1,589,320 shares of the aerospace company's stock valued at $88,986,000 after purchasing an additional 148,166 shares during the period. Fred Alger Management LLC boosted its stake in AAR by 32.6% during the 1st quarter. Fred Alger Management LLC now owns 533,770 shares of the aerospace company's stock valued at $29,886,000 after purchasing an additional 131,092 shares during the period. Nuveen LLC acquired a new position in AAR during the 1st quarter valued at about $6,226,000. Finally, Invesco Ltd. boosted its stake in AAR by 8.4% during the 1st quarter. Invesco Ltd. now owns 1,160,420 shares of the aerospace company's stock valued at $64,972,000 after purchasing an additional 89,802 shares during the period. 90.74% of the stock is owned by institutional investors and hedge funds.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes.

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