AAON, Inc. (NASDAQ:AAON) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate AAON a “Moderate Buy”: Four of seven covering brokerages recommend buying the stock, while three rate it a hold. The average 12-month price target is $120, although several firms recently lowered their targets.
• AAON reported strong quarterly growth: The company earned $0.69 per share versus the $0.51 consensus estimate, while revenue reached $626.98 million, up 101.2% year over year.
• Shares have declined substantially: AAON opened at $70.80, near its 12-month low of $66.39 and well below its 12-month high of $150.46. Insiders and institutional investors continued buying, with institutions owning 70.81% of outstanding shares.

AAON, Inc. (NASDAQ:AAON - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the seven brokerages that are presently covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $120.00.

Several research firms have weighed in on AAON. KeyCorp restated a "sector weight" rating on shares of AAON in a report on Thursday, August 13th. Zacks Research downgraded AAON from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 7th. Oppenheimer reissued an "outperform" rating and set a $115.00 price objective (down from $125.00) on shares of AAON in a report on Wednesday, October 14th. Weiss Ratings reissued a "hold (c)" rating on shares of AAON in a report on Monday, October 12th. Finally, Robert W. Baird cut their price objective on AAON from $150.00 to $135.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th.

Insider Activity at AAON

In related news, Director David Stewart purchased 1,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were bought at an average price of $74.66 per share, for a total transaction of $74,660.00. Following the completion of the acquisition, the director directly owned 4,000 shares in the company, valued at approximately $298,640. This trade represents a 33.33% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Matthew Shaub purchased 457 shares of the company's stock in a transaction dated Friday, August 28th. The stock was purchased at an average cost of $76.42 per share, for a total transaction of $34,923.94. Following the transaction, the executive vice president owned 3,136 shares of the company's stock, valued at approximately $239,653.12. This trade represents a 17.06% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 18.09% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Wasatch Advisors LP boosted its holdings in AAON by 3.1% during the second quarter. Wasatch Advisors LP now owns 2,338,517 shares of the construction company's stock valued at $296,664,000 after acquiring an additional 70,399 shares during the period. First Trust Advisors LP grew its position in shares of AAON by 22.1% in the first quarter. First Trust Advisors LP now owns 2,013,215 shares of the construction company's stock valued at $166,594,000 after purchasing an additional 364,101 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of AAON in the second quarter worth about $55,284,000. American Capital Management Inc. bought a new position in shares of AAON in the second quarter worth about $47,595,000. Finally, Senvest Management LLC increased its stake in shares of AAON by 63.9% in the first quarter. Senvest Management LLC now owns 310,740 shares of the construction company's stock worth $25,714,000 after purchasing an additional 121,200 shares during the period. Institutional investors own 70.81% of the company's stock.

AAON Stock Performance

Shares of AAON opened at $70.80 on Tuesday. The company's fifty day moving average is $79.41 and its 200-day moving average is $97.84. AAON has a 12 month low of $66.39 and a 12 month high of $150.46. The firm has a market cap of $5.84 billion, a price-to-earnings ratio of 36.88, a price-to-earnings-growth ratio of 1.28 and a beta of 1.41. The company has a quick ratio of 2.01, a current ratio of 3.01 and a debt-to-equity ratio of 0.43.

AAON (NASDAQ:AAON - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The construction company reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.18. The business had revenue of $626.98 million during the quarter, compared to analyst estimates of $508.82 million. AAON had a net margin of 8.24% and a return on equity of 17.32%. AAON's quarterly revenue was up 101.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.22 EPS. Equities analysts expect that AAON will post 2.35 EPS for the current fiscal year.

AAON Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.40 dividend on an annualized basis and a yield of 0.6%. AAON's dividend payout ratio is presently 20.83%.

About AAON

AAON, Inc designs and manufactures high-performance heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. Its product portfolio includes rooftop units, air-handling units, condensing units, chillers, geothermal heat pumps and related HVAC controls.

The company's systems are used in applications such as office buildings, schools, healthcare facilities, retail properties, manufacturing plants and other commercial structures. AAON emphasizes configurable equipment, energy efficiency and integrated controls designed to support indoor comfort and air quality.

AAON was founded in 1988 by Norman H.

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