Air Lease (NYSE:AL) Shares Gap Down - Here's Why

Key Points

• Air Lease Corporation shares gapped down to $51.90 from a previous close of $55.15, last trading at $54.43 with a volume of 71,379 shares.
• Several analysts, including Citigroup and Barclays, have given positive ratings and increased price targets for Air Lease, with an average consensus price target of $59.50.
• The company announced a quarterly dividend of $0.22 per share, to be paid on October 8th, representing an annualized dividend yield of 1.6% and a payout ratio of 15.38%.

Air Lease Corporation (NYSE:AL - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $55.15, but opened at $51.90. Air Lease shares last traded at $54.43, with a volume of 71,379 shares.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on AL shares. Citigroup upgraded shares of Air Lease from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $45.00 to $68.00 in a report on Tuesday, May 20th. Barclays restated an "overweight" rating and issued a $67.00 price target (up previously from $56.00) on shares of Air Lease in a research note on Thursday, July 10th. Finally, Wall Street Zen raised Air Lease from a "hold" rating to a "buy" rating in a research report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating and five have given a buy rating to the company's stock. According to data from MarketBeat.com, Air Lease has an average rating of "Moderate Buy" and an average target price of $59.50.

Air Lease Trading Up 0.5%

The firm's 50 day moving average price is $57.33 and its 200-day moving average price is $51.31. The company has a debt-to-equity ratio of 2.47, a current ratio of 0.42 and a quick ratio of 0.39. The stock has a market cap of $6.20 billion, a P/E ratio of 6.74, a P/E/G ratio of 0.60 and a beta of 1.41.

Air Lease (NYSE:AL - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The transportation company reported $1.40 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. Air Lease had a net margin of 34.04% and a return on equity of 7.99%. The company had revenue of $731.70 million during the quarter, compared to analyst estimates of $723.35 million. During the same period in the previous year, the business earned $1.23 EPS. The firm's revenue for the quarter was up 9.7% on a year-over-year basis. As a group, equities research analysts forecast that Air Lease Corporation will post 5.16 earnings per share for the current year.

Air Lease Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 8th. Investors of record on Wednesday, September 3rd will be given a dividend of $0.22 per share. The ex-dividend date of this dividend is Wednesday, September 3rd. This represents a $0.88 annualized dividend and a dividend yield of 1.6%. Air Lease's dividend payout ratio (DPR) is 10.68%.

Insider Buying and Selling at Air Lease

In other news, EVP David Beker sold 2,000 shares of the business's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $55.44, for a total transaction of $110,880.00. Following the completion of the transaction, the executive vice president directly owned 19,770 shares of the company's stock, valued at $1,096,048.80. The trade was a 9.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Grant A. Levy sold 10,000 shares of the stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $56.85, for a total transaction of $568,500.00. Following the transaction, the executive vice president owned 146,316 shares in the company, valued at approximately $8,318,064.60. This trade represents a 6.40% decrease in their position. The disclosure for this sale can be found here. Company insiders own 6.64% of the company's stock.

Institutional Investors Weigh In On Air Lease

A number of hedge funds have recently added to or reduced their stakes in the stock. M&T Bank Corp increased its position in Air Lease by 3.6% during the first quarter. M&T Bank Corp now owns 14,793 shares of the transportation company's stock valued at $714,000 after acquiring an additional 508 shares during the last quarter. Bessemer Group Inc. grew its stake in shares of Air Lease by 18.7% during the 1st quarter. Bessemer Group Inc. now owns 10,410 shares of the transportation company's stock valued at $503,000 after purchasing an additional 1,640 shares during the period. Verity Asset Management Inc. purchased a new stake in shares of Air Lease during the 1st quarter valued at about $348,000. Neo Ivy Capital Management purchased a new position in shares of Air Lease in the first quarter worth approximately $1,347,000. Finally, Sequoia Financial Advisors LLC boosted its holdings in shares of Air Lease by 10.2% in the first quarter. Sequoia Financial Advisors LLC now owns 71,283 shares of the transportation company's stock worth $3,444,000 after buying an additional 6,600 shares during the last quarter. 94.59% of the stock is currently owned by hedge funds and other institutional investors.

Air Lease Company Profile

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet aircraft to airlines worldwide. It sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors. The company provides fleet management services to investors and owners of aircraft portfolios.