AAR (NYSE:AIR) Sees Unusually-High Trading Volume Following Strong Earnings

Key Points

• AAR Corp. reported a quarterly EPS of $1.08, exceeding expectations and showing significant revenue growth of 11.8% year-over-year.
• The company's stock experienced unusually-high trading volume, with approximately 310,535 shares traded following the earnings report.
• Several Wall Street analysts have provided mixed ratings, including a downgrade from "buy" to "hold" and price target adjustments, with an average rating of "Buy" and a consensus target of $83.75.

Shares of AAR Corp. (NYSE:AIR - Get Free Report) saw unusually-high trading volume on Wednesday following a stronger than expected earnings report. Approximately 310,535 shares changed hands during trading, a decline of 3% from the previous session's volume of 320,324 shares.The stock last traded at $80.36 and had previously closed at $78.35.

The aerospace company reported $1.08 EPS for the quarter, beating the consensus estimate of $0.98 by $0.10. The business had revenue of $739.60 million for the quarter, compared to the consensus estimate of $692.47 million. AAR had a net margin of 0.45% and a return on equity of 11.66%. The business's revenue for the quarter was up 11.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.50 EPS. AAR has set its Q2 2026 guidance at EPS.

Wall Street Analyst Weigh In

AIR has been the topic of several recent research reports. Wall Street Zen downgraded shares of AAR from a "buy" rating to a "hold" rating in a report on Saturday. KeyCorp upped their price objective on shares of AAR from $80.00 to $86.00 and gave the company an "overweight" rating in a report on Thursday, July 17th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $85.00 target price on shares of AAR in a research note on Wednesday. Finally, Truist Financial boosted their target price on shares of AAR from $78.00 to $81.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $83.75.

Insider Activity at AAR

In other AAR news, CAO Jessica A. Garascia sold 3,631 shares of the company's stock in a transaction on 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 in the company, valued at approximately $3,015,138.36. This represents a 8.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Sean M. Gillen sold 18,000 shares of the company's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $77.37, for a total transaction of $1,392,660.00. Following the transaction, the chief financial officer owned 99,868 shares of the company's stock, valued at $7,726,787.16. This represents a 15.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 95,182 shares of company stock valued at $7,331,452. Insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On AAR

A number of hedge funds have recently modified their holdings of AIR. Cetera Investment Advisers purchased a new stake in shares of AAR in the fourth quarter valued at about $341,000. Nuveen Asset Management LLC grew its holdings in shares of AAR by 7.9% in the fourth quarter. Nuveen Asset Management LLC now owns 112,371 shares of the aerospace company's stock valued at $6,886,000 after purchasing an additional 8,217 shares during the period. Squarepoint Ops LLC purchased a new position in AAR during the fourth quarter worth about $627,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in AAR by 21.8% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 93,096 shares of the aerospace company's stock worth $5,705,000 after buying an additional 16,645 shares during the period. Finally, Public Employees Retirement System of Ohio boosted its stake in AAR by 8.1% during the fourth quarter. Public Employees Retirement System of Ohio now owns 57,811 shares of the aerospace company's stock worth $3,543,000 after buying an additional 4,338 shares during the period. Hedge funds and other institutional investors own 90.74% of the company's stock.

AAR Trading Up 2.5%

The company has a market cap of $2.89 billion, a PE ratio of 242.54 and a beta of 1.50. 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's 50 day simple moving average is $75.90 and its two-hundred day simple moving average is $67.05.

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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