AAR (NYSE:AIR) Cut to Hold at Wall Street Zen

Key Points

• AAR's stock rating has been downgraded from "buy" to "hold" by Wall Street Zen, while other analysts have given it varied ratings, maintaining an average target price of $83.75.
• The company reported earnings of $1.16 per share for the last quarter, surpassing expectations with a revenue of $754.5 million, marking a 15% increase year-over-year.
• Insider trading activity has seen significant sales, with executives selling shares worth over $7 million recently, decreasing their ownership stakes in the company.

AAR (NYSE:AIR - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Monday.

Other analysts also recently issued reports about the company. KeyCorp raised their target price on AAR from $80.00 to $86.00 and gave the stock an "overweight" rating in a research report on Thursday, July 17th. Truist Financial raised their price target on AAR from $78.00 to $81.00 and gave the company a "buy" rating in a report on Friday, July 11th. Finally, Royal Bank Of Canada raised their price target on AAR from $75.00 to $85.00 and gave the company an "outperform" rating in a report on Thursday, July 17th. One research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $83.75.

AAR Stock Down 2.3%

Shares of AIR stock traded down $1.83 during trading hours on Monday, reaching $76.86. The company had a trading volume of 64,389 shares, compared to its average volume of 311,996. AAR has a 12 month low of $46.51 and a 12 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 business has a fifty day simple moving average of $72.53 and a 200-day simple moving average of $65.14. The company has a market cap of $2.76 billion, a price-to-earnings ratio of 232.90 and a beta of 1.53.

AAR (NYSE:AIR - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The aerospace company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $1.00 by $0.16. AAR had a return on equity of 11.66% and a net margin of 0.45%. The company had revenue of $754.50 million during the quarter, compared to the consensus estimate of $695.81 million. During the same period last year, the business posted $0.88 earnings per share. AAR's revenue was up 15.0% on a year-over-year basis. On average, research analysts expect that AAR will post 3.77 earnings per share for the current fiscal year.

Insider Transactions at AAR

In related news, Director Jennifer L. Vogel sold 7,000 shares of AAR stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $78.07, for a total value of $546,490.00. Following the completion of the transaction, the director owned 22,970 shares in the company, valued at approximately $1,793,267.90. This trade represents a 23.36% 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, CAO Jessica A. Garascia sold 3,631 shares of AAR stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $77.08, for a total value of $279,877.48. Following the completion of the transaction, the chief accounting officer owned 39,117 shares of the company's stock, valued at approximately $3,015,138.36. This represents a 8.49% decrease in their position. The disclosure for this sale can be found here. Insiders sold 95,182 shares of company stock valued at $7,331,452 over the last 90 days. 3.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hughes Financial Services LLC bought a new stake in shares of AAR during the first quarter valued at approximately $28,000. Putney Financial Group LLC bought a new position in AAR in the fourth quarter worth approximately $30,000. Virtus Fund Advisers LLC bought a new position in AAR in the fourth quarter worth approximately $36,000. Virtus Advisers LLC bought a new position in AAR in the first quarter worth approximately $47,000. Finally, Sterling Capital Management LLC raised its stake in AAR by 761.2% in the fourth quarter. Sterling Capital Management LLC now owns 887 shares of the aerospace company's stock worth $54,000 after buying an additional 784 shares in the last quarter. Hedge funds and other institutional investors 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.