AAR Corp. (NYSE:AIR) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give AAR a “Moderate Buy” consensus, with four buy ratings, one strong-buy, and three holds. The average 12-month price target is $135.60.
• AAR reported stronger-than-expected quarterly results: earnings per share came in at $1.53 versus the $1.38 estimate, while revenue reached $928 million, up 23% year over year.
• Institutional investors own 90.74% of AAR, with BlackRock and Barrow Hanley among firms recently initiating sizable positions. The stock opened at $117.14, below its 50-day moving average of $135.08.

Shares of AAR Corp. (NYSE:AIR - Get Free Report) have earned a consensus rating of "Moderate Buy" from the eight analysts that are covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $135.60.

A number of research analysts recently weighed in on AIR shares. KeyCorp reiterated a "sector weight" rating on shares of AAR in a report on Wednesday, July 22nd. Guggenheim started coverage on AAR in a research note on Monday. They set a "neutral" rating for the company. Jefferies Financial Group raised their price objective on AAR from $150.00 to $155.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Zacks Research raised AAR from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 10th. Finally, Weiss Ratings raised AAR from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, July 23rd.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of AAR in the second quarter worth $925,068,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of AAR during the 2nd quarter valued at $84,251,000. Geode Capital Management LLC boosted its position in AAR by 9.4% during the 4th quarter. Geode Capital Management LLC now owns 920,743 shares of the aerospace company's stock worth $76,239,000 after purchasing an additional 78,810 shares during the period. Principal Financial Group Inc. boosted its position in AAR by 4.9% during the 1st quarter. Principal Financial Group Inc. now owns 675,686 shares of the aerospace company's stock worth $73,961,000 after purchasing an additional 31,583 shares during the period. Finally, Emerald Advisers LLC increased its holdings in AAR by 6.3% in the 1st quarter. Emerald Advisers LLC now owns 445,693 shares of the aerospace company's stock valued at $48,786,000 after purchasing an additional 26,223 shares in the last quarter. 90.74% of the stock is owned by institutional investors and hedge funds.

AAR Price Performance

AIR opened at $117.14 on Thursday. AAR has a 1 year low of $74.25 and a 1 year high of $154.00. The company's 50 day simple moving average is $135.08 and its 200 day simple moving average is $123.68. The stock has a market capitalization of $4.67 billion, a PE ratio of 24.25 and a beta of 1.11. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.24 and a current ratio of 2.84.

AAR (NYSE:AIR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.38 by $0.15. The firm had revenue of $928.00 million during the quarter, compared to analyst estimates of $893.03 million. AAR had a net margin of 5.67% and a return on equity of 12.67%. AAR's revenue for the quarter was up 23.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.16 earnings per share. As a group, sell-side analysts expect that AAR will post 5.92 EPS for the current year.

AAR Company Profile

AAR Corp. is a global provider of aviation services supporting commercial aviation, government and defense customers. The company supplies aircraft parts and equipment, manages inventory and logistics, and provides maintenance, repair and overhaul services for aircraft and components.

AAR's offerings include parts distribution, supply-chain management, aircraft maintenance, airframe and component repair, and mobility solutions for government and defense operators. Its services are designed to help airlines, aircraft operators and government agencies maintain fleet readiness and manage aviation assets.

Founded in 1955, AAR is headquartered in Wood Dale, Illinois, and serves customers across North America, Europe, Asia and other international markets.

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