AAR (NYSE:AIR) Upgraded to Strong-Buy at Zacks Research

Key Points

• AAR Corp's stock has been upgraded to a strong-buy rating by Zacks Research, highlighting increased confidence in the company's future performance.
• The company reported earnings of $1.08 per share for the last quarter, surpassing analysts' expectations of $0.98, with revenue also exceeding forecasts at $739.60 million.
• Several financial institutions, including Truist Financial and KeyCorp, have raised their price targets for AAR, indicating a positive outlook and increased investor interest in the stock.

AAR (NYSE:AIR - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other equities research analysts have also issued reports about the stock. Truist Financial boosted their price objective on shares of AAR from $81.00 to $90.00 and gave the stock a "buy" rating in a report on Wednesday, September 24th. Royal Bank Of Canada restated an "outperform" rating and issued a $85.00 price objective on shares of AAR in a report on Wednesday, September 24th. Wall Street Zen upgraded shares of AAR from a "hold" rating to a "buy" rating in a report on Sunday. Finally, KeyCorp boosted their price objective on shares of AAR from $86.00 to $93.00 and gave the stock an "overweight" rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating and four have issued a Buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $87.75.

AAR Stock Performance

Shares of AIR stock opened at $84.41 on Tuesday. The firm has a market cap of $3.05 billion, a price-to-earnings ratio of 108.22 and a beta of 1.51. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.31 and a current ratio of 2.91. AAR has a 52 week low of $46.51 and a 52 week high of $89.69. The firm's 50-day simple moving average is $76.49 and its two-hundred day simple moving average is $67.85.

AAR (NYSE:AIR - Get Free Report) last posted its earnings results on Tuesday, September 23rd. The aerospace company reported $1.08 earnings per share 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 the consensus estimate of $692.47 million. AAR had a net margin of 1.01% and a return on equity of 12.29%. The company's revenue was up 11.8% on a year-over-year basis. During the same quarter last year, the company earned $0.50 earnings per share. AAR has set its Q2 2026 guidance at EPS. As a group, equities analysts forecast that AAR will post 3.77 earnings per share for the current year.

Insider Activity

In related news, CEO John Mcclain Holmes III sold 10,000 shares of the stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $71.70, for a total transaction of $717,000.00. Following the sale, the chief executive officer directly owned 298,603 shares of the company's stock, valued at approximately $21,409,835.10. This represents a 3.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Sean M. Gillen sold 18,000 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $77.37, for a total transaction of $1,392,660.00. Following the sale, the chief financial officer directly owned 99,868 shares in the company, valued at approximately $7,726,787.16. The trade was a 15.27% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, 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

Institutional investors have recently made changes to their positions in the business. Osterweis Capital Management Inc. bought a new stake in AAR during the 2nd quarter worth approximately $26,000. Hughes Financial Services LLC bought a new position in shares of AAR during the first quarter worth $28,000. Virtus Advisers LLC bought a new position in shares of AAR during the first quarter worth $47,000. GAMMA Investing LLC boosted its position in shares of AAR by 88.5% during the first quarter. GAMMA Investing LLC now owns 1,131 shares of the aerospace company's stock worth $63,000 after acquiring an additional 531 shares during the last quarter. Finally, State of Wyoming boosted its position in shares of AAR by 128.5% during the first quarter. State of Wyoming now owns 1,821 shares of the aerospace company's stock worth $102,000 after acquiring an additional 1,024 shares during the last quarter. 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.

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