AAR (NYSE:AIR) Shares Gap Up on Earnings Beat

AAR Corp. (NYSE:AIR - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $74.88, but opened at $78.18. AAR shares last traded at $83.95, with a volume of 461,021 shares trading hands.

The aerospace company reported $1.16 EPS for the quarter, topping the consensus estimate of $1.00 by $0.16. The business had revenue of $754.50 million during the quarter, compared to analysts' expectations of $695.81 million. AAR had a return on equity of 11.66% and a net margin of 0.45%. AAR's revenue was up 15.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.88 earnings per share.

Analyst Ratings Changes

AIR has been the topic of a number of recent analyst reports. KeyCorp raised their price target on shares of AAR from $80.00 to $86.00 and gave the company an "overweight" rating in a research report on Thursday. Wall Street Zen upgraded shares of AAR from a "hold" rating to a "buy" rating in a research report on Friday. Truist Financial lifted their target price on shares of AAR from $78.00 to $81.00 and gave the company a "buy" rating in a research report on Friday, July 11th. Finally, Royal Bank Of Canada boosted their price objective on shares of AAR from $75.00 to $85.00 and gave the stock an "outperform" rating in a report on Thursday. Five investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, AAR presently has an average rating of "Buy" and a consensus price target of $83.75.

Institutional Trading of AAR

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Truist Financial Corp increased its position in shares of AAR by 29.3% during the 2nd quarter. Truist Financial Corp now owns 9,760 shares of the aerospace company's stock valued at $671,000 after purchasing an additional 2,209 shares during the last quarter. Janney Montgomery Scott LLC bought a new stake in shares of AAR during the second quarter worth $238,000. State of Alaska Department of Revenue increased its stake in shares of AAR by 7.9% during the second quarter. State of Alaska Department of Revenue now owns 21,090 shares of the aerospace company's stock valued at $1,449,000 after buying an additional 1,542 shares during the period. Meyer Handelman Co. purchased a new position in shares of AAR during the second quarter valued at $206,000. Finally, Public Employees Retirement System of Ohio grew its stake in AAR by 7.6% in the second quarter. Public Employees Retirement System of Ohio now owns 39,584 shares of the aerospace company's stock valued at $2,723,000 after purchasing an additional 2,804 shares during the last quarter. 90.74% of the stock is owned by hedge funds and other institutional investors.

AAR Stock Performance

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 firm has a market cap of $3.02 billion, a price-to-earnings ratio of 253.58 and a beta of 1.44. The firm has a fifty day simple moving average of $67.49 and a two-hundred day simple moving average of $64.14.

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.