Aercap Holdings N.V. (NYSE:AER) Receives Average Rating of "Buy" from Brokerages

Key Points

• Analyst sentiment is positive: Eleven brokerages give AerCap an average “Buy” rating, with an average 12-month price target of $172.56 versus the reported share price of $155.38.
• Quarterly results exceeded expectations: AerCap reported earnings of $5.14 per share and revenue of $2.22 billion, surpassing estimates of $4.14 EPS and $2.10 billion in revenue; revenue rose 14.9% year over year.
• Shareholder returns remain a focus: The company announced a $0.40 quarterly dividend and authorized a $1 billion share-repurchase plan, potentially buying back up to 4.3% of outstanding shares.

Shares of Aercap Holdings N.V. (NYSE:AER - Get Free Report) have been given an average recommendation of "Buy" by the eleven ratings firms that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation, nine have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $172.5556.

AER has been the subject of a number of research analyst reports. Zacks Research raised shares of Aercap from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 20th. Morgan Stanley upped their price target on Aercap from $155.00 to $165.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. TD Cowen lifted their price objective on Aercap from $175.00 to $180.00 and gave the stock a "buy" rating in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $190.00 price objective on shares of Aercap in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. upped their target price on Aercap from $150.00 to $155.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th.

Aercap Stock Up 0.2%

Shares of AER stock opened at $155.38 on Thursday. Aercap has a 12 month low of $108.00 and a 12 month high of $158.80. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 2.32. The firm has a market cap of $25.93 billion, a PE ratio of 7.65, a price-to-earnings-growth ratio of 0.62 and a beta of 0.93. The stock has a 50 day moving average of $145.96 and a 200-day moving average of $143.78.

Aercap (NYSE:AER - Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $5.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.14 by $1.00. Aercap had a net margin of 37.85% and a return on equity of 17.60%. The business had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.10 billion. During the same quarter in the previous year, the firm posted $2.83 earnings per share. Aercap's revenue was up 14.9% compared to the same quarter last year. Aercap has set its FY 2026 guidance at 16.800-16.800 EPS. On average, equities analysts predict that Aercap will post 18.95 EPS for the current year.

Aercap Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Wednesday, August 12th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Wednesday, August 12th. Aercap's payout ratio is 7.87%.

Aercap announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, April 29th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 4.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AER. Wedge Capital Management L L P NC boosted its holdings in Aercap by 5.4% during the second quarter. Wedge Capital Management L L P NC now owns 237,880 shares of the financial services provider's stock valued at $34,678,000 after purchasing an additional 12,235 shares in the last quarter. Handelsbanken Fonder AB lifted its position in shares of Aercap by 321.1% during the 2nd quarter. Handelsbanken Fonder AB now owns 47,700 shares of the financial services provider's stock worth $6,954,000 after buying an additional 36,373 shares during the period. Steadtrust LLC lifted its position in shares of Aercap by 1.9% during the 2nd quarter. Steadtrust LLC now owns 14,450 shares of the financial services provider's stock worth $2,107,000 after buying an additional 270 shares during the period. Contravisory Investment Management Inc. boosted its stake in Aercap by 4.2% in the 2nd quarter. Contravisory Investment Management Inc. now owns 1,968 shares of the financial services provider's stock valued at $287,000 after buying an additional 79 shares in the last quarter. Finally, Gradient Investments LLC grew its position in Aercap by 5.6% in the second quarter. Gradient Investments LLC now owns 39,579 shares of the financial services provider's stock valued at $5,770,000 after acquiring an additional 2,082 shares during the period. Institutional investors own 96.42% of the company's stock.

Aercap Company Profile

AerCap Holdings N.V. NYSE: AER is a global aircraft leasing and aviation finance company that acquires, leases, sells and manages commercial aircraft and engines. Its core services include operating leases, finance leases, sale-and-leaseback transactions, aircraft trading and remarketing, and asset management for airline customers. The company also provides related commercial and technical support services designed to optimize fleet utilization and residual values over the life cycle of aircraft and engines.

Operating with a broad global footprint, AerCap serves airlines and other aviation customers across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.

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