AAR (NYSE:AIR) Shares Gap Down - Here's What Happened

Key Points

• AAR Corp. shares opened at $84.62, down from a previous close of $89.67, and last traded at $83.79 with a volume of 570,665 shares.
• Several analysts upgraded AAR's stock ratings, with a current consensus rating of "Buy" and a target price of $87.75.
• In its latest earnings report, AAR Corp. surpassed estimates with an EPS of $1.08, reporting revenue of $739.60 million, a year-over-year increase of 11.8%.

AAR Corp. (NYSE:AIR - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $89.67, but opened at $84.62. AAR shares last traded at $83.79, with a volume of 570,665 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have issued reports on AIR shares. Wall Street Zen upgraded shares of AAR from a "hold" rating to a "buy" rating in a research note on Sunday. Truist Financial upped their price objective on shares of AAR from $81.00 to $90.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. KeyCorp increased their target price on shares of AAR from $86.00 to $93.00 and gave the stock an "overweight" rating in a research note on Monday. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $85.00 target price on shares of AAR in a research note on Wednesday, September 24th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $87.75.

AAR Stock Performance

The firm has a market capitalization of $3.01 billion, a PE ratio of 107.12 and a beta of 1.50. The company has a current ratio of 2.91, a quick ratio of 1.31 and a debt-to-equity ratio of 0.82. The stock's 50 day moving average price is $76.39 and its two-hundred day moving average price is $67.74.

AAR (NYSE:AIR - Get Free Report) last released its earnings results on Tuesday, September 23rd. The aerospace company reported $1.08 EPS for the quarter, topping the consensus estimate of $0.98 by $0.10. The firm had revenue of $739.60 million during the quarter, compared to analysts' expectations of $692.47 million. AAR had a net margin of 1.01% and a return on equity of 12.29%. AAR's revenue for the quarter was up 11.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.50 EPS. AAR has set its Q2 2026 guidance at EPS. On average, equities analysts expect that AAR Corp. will post 3.77 earnings per share for the current year.

Insider Activity

In other AAR news, CAO Jessica A. Garascia sold 3,631 shares of AAR stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $77.08, for a total value of $279,877.48. Following the completion of the sale, the chief accounting officer directly owned 39,117 shares of the company's stock, valued at approximately $3,015,138.36. The trade was a 8.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jennifer L. Vogel sold 7,000 shares of AAR stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $78.07, for a total transaction of $546,490.00. Following the completion of the sale, the director directly owned 22,970 shares of the company's stock, valued at $1,793,267.90. The trade was a 23.36% 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 valued at $7,331,452 over the last quarter. Insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On AAR

A number of hedge funds have recently made changes to their positions in the stock. 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 purchasing an additional 188,406 shares during the last quarter. Westwood Holdings Group Inc. boosted its holdings in shares of AAR by 10.3% in 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 last quarter. Invesco Ltd. boosted its holdings in shares of AAR by 4.2% in the 2nd quarter. Invesco Ltd. now owns 1,208,796 shares of the aerospace company's stock valued at $83,153,000 after purchasing an additional 48,376 shares during the last quarter. Franklin Resources Inc. boosted its holdings in shares of AAR by 0.5% in the 2nd quarter. Franklin Resources Inc. now owns 842,909 shares of the aerospace company's stock valued at $57,984,000 after purchasing an additional 4,608 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of AAR by 1.4% in the 2nd quarter. Geode Capital Management LLC now owns 838,492 shares of the aerospace company's stock valued at $57,687,000 after purchasing an additional 11,170 shares during the last quarter. Institutional investors and hedge funds own 90.74% of the company's stock.

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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