AAR Corp. (NYSE:AIR) Stock Has Average Target Price of $140.60 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Eight brokerages give AAR a consensus “Moderate Buy” rating, with an average 12-month price target of $140.60 versus the reported share price of $100.47.
• Recent quarterly results exceeded expectations: AAR reported adjusted earnings of $1.49 per share and revenue of $918 million, surpassing estimates of $1.30 and $878.81 million, respectively. Revenue increased 24.1% year over year.
• Institutional ownership remains high: Hedge funds and other institutions own 90.74% of AAR, with major investors including BlackRock, Principal Financial Group, and Barrow Hanley Mewhinney & Strauss.

Shares of AAR Corp. (NYSE:AIR - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the eight brokerages that are covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $140.60.

Several brokerages recently weighed in on AIR. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $145.00 target price on shares of AAR in a research report on Monday, September 28th. Jefferies Financial Group boosted their price target on AAR from $155.00 to $160.00 and gave the company a "buy" rating in a research report on Tuesday, September 29th. Truist Financial upped their price target on AAR from $128.00 to $145.00 and gave the stock a "buy" rating in a research note on Monday, July 27th. KeyCorp restated a "sector weight" rating on shares of AAR in a research note on Wednesday, July 22nd. Finally, Guggenheim restated a "neutral" rating on shares of AAR in a report on Tuesday, September 29th.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AIR. BlackRock Inc. acquired a new stake in AAR during the 2nd quarter valued at approximately $925,068,000. Principal Financial Group Inc. raised its position in shares of AAR by 4.9% in the 1st quarter. Principal Financial Group Inc. now owns 675,686 shares of the aerospace company's stock valued at $73,961,000 after purchasing an additional 31,583 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of AAR in the 2nd quarter valued at approximately $84,251,000. Emerald Advisers LLC raised its position in shares of 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. Finally, Emerald Mutual Fund Advisers Trust boosted its stake in shares of AAR by 10.9% during the 1st quarter. Emerald Mutual Fund Advisers Trust now owns 280,257 shares of the aerospace company's stock valued at $30,677,000 after buying an additional 27,485 shares during the last quarter. 90.74% of the stock is owned by hedge funds and other institutional investors.

AAR Price Performance

AIR opened at $100.47 on Monday. The company's 50 day simple moving average is $126.13 and its 200 day simple moving average is $123.62. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.28 and a current ratio of 2.83. AAR has a 1 year low of $76.10 and a 1 year high of $154.00. The stock has a market capitalization of $4.04 billion, a PE ratio of 20.59 and a beta of 1.13.

AAR (NYSE:AIR - Get Free Report) last announced its quarterly earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share for the quarter, beating analysts' consensus estimates of $1.30 by $0.19. AAR had a net margin of 5.55% and a return on equity of 12.99%. The company had revenue of $918.00 million for the quarter, compared to analyst estimates of $878.81 million. During the same quarter last year, the business earned $1.08 EPS. AAR's revenue for the quarter was up 24.1% on a year-over-year basis. As a group, sell-side analysts expect that AAR will post 5.89 EPS for the current year.

About AAR

AAR Corp. is a global aviation services company headquartered in Wood Dale, Illinois. The company supports commercial airlines, government and defense organizations, and original equipment manufacturers through aftermarket aviation products and services.

AAR's aviation activities include the distribution and sale of aircraft parts, maintenance, repair and overhaul services, component repair, engineering support, and supply-chain management. Its parts and services support a range of commercial, government, and military aircraft, helping customers maintain aircraft availability and operational readiness.

The company also provides expeditionary and mobility-related products and services for government customers, including systems and equipment used to support transportation and logistics operations.

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