AAR (NYSE:AIR) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• AAR Corp reported a quarterly earnings per share (EPS) of $1.08, exceeding analysts' expectations by $0.10.
• Shares of AAR stock rose $1.74 during trading on Tuesday, closing at $78.64 with a notable volume of over 1.2 million shares traded.
• Several analysts increased their price targets for AAR, with Royal Bank of Canada raising its target from $75 to $85, indicating strong market confidence.

AAR (NYSE:AIR - Get Free Report) announced its quarterly earnings results on Tuesday. The aerospace company reported $1.08 EPS for the quarter, topping the consensus estimate of $0.98 by $0.10, Zacks reports. AAR had a return on equity of 11.66% and a net margin of 0.45%.

AAR Price Performance

Shares of AAR stock traded up $1.74 during trading on Tuesday, hitting $78.64. 1,290,715 shares of the company's stock traded hands, compared to its average volume of 320,004. AAR has a twelve month low of $46.51 and a twelve month high of $86.43. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.72 and a quick ratio of 1.26. The company has a market cap of $2.83 billion, a PE ratio of 238.31 and a beta of 1.50. The firm's fifty day moving average price is $75.79 and its 200 day moving average price is $66.97.

Insider Activity

In related news, CEO John Mcclain Holmes III sold 31,551 shares of the firm's stock in a transaction on Thursday, July 24th. The stock was sold at an average price of $78.03, for a total transaction of $2,461,924.53. Following the completion of the sale, the chief executive officer directly owned 360,921 shares of the company's stock, valued at $28,162,665.63. This trade represents a 8.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jennifer L. Vogel sold 7,000 shares of the stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $78.07, for a total value of $546,490.00. Following the sale, the director owned 22,970 shares in the company, valued at $1,793,267.90. The trade was a 23.36% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 95,182 shares of company stock valued at $7,331,452. Company insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On AAR

Hedge funds have recently added to or reduced their stakes in the stock. Nomura Holdings Inc. bought a new position in AAR in the second quarter valued at approximately $753,000. Geneos Wealth Management Inc. lifted its position in AAR by 200.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,105 shares of the aerospace company's stock valued at $214,000 after acquiring an additional 2,070 shares in the last quarter. Public Sector Pension Investment Board boosted its stake in AAR by 8.1% in the 2nd quarter. Public Sector Pension Investment Board now owns 120,964 shares of the aerospace company's stock worth $8,321,000 after purchasing an additional 9,058 shares during the period. Tower Research Capital LLC TRC increased its holdings in AAR by 277.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,174 shares of the aerospace company's stock worth $218,000 after purchasing an additional 2,333 shares in the last quarter. Finally, Captrust Financial Advisors bought a new stake in shares of AAR in the second quarter valued at about $216,000. Institutional investors and hedge funds own 90.74% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on AIR. Royal Bank Of Canada increased their price target on AAR from $75.00 to $85.00 and gave the stock an "outperform" rating in a research note on Thursday, July 17th. Truist Financial boosted their price target on shares of AAR from $78.00 to $81.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Wall Street Zen cut shares of AAR from a "buy" rating to a "hold" rating in a report on Saturday. Finally, KeyCorp boosted their target price on AAR from $80.00 to $86.00 and gave the stock an "overweight" rating in a report on Thursday, July 17th. Four analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $83.75.

AAR Company Profile

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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