IMC Chicago LLC Reduces Stake in AAR Corp. $AIR

Key Points

• IMC Chicago LLC reduced its stake in AAR by 51.5% in Q4, selling 11,287 shares and ending the period with 10,612 shares worth about $879,000.
• Corporate insiders were net sellers this quarter — the CEO sold 26,175 shares (~$2.82M) and the CFO sold 10,750 shares, with insiders offloading 96,925 shares worth roughly $10.73M in total.
• AAR beat quarterly expectations (EPS $1.25 vs. $1.21 est.; revenue $845.1M vs. $812.6M), and analysts carry a consensus “Moderate Buy” rating with an average target of $131.20 (Jefferies raised its target to $150).

IMC Chicago LLC reduced its holdings in AAR Corp. (NYSE:AIR - Free Report) by 51.5% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 10,612 shares of the aerospace company's stock after selling 11,287 shares during the quarter. IMC Chicago LLC's holdings in AAR were worth $879,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Smartleaf Asset Management LLC boosted its stake in shares of AAR by 14.9% during the 3rd quarter. Smartleaf Asset Management LLC now owns 1,036 shares of the aerospace company's stock valued at $91,000 after purchasing an additional 134 shares in the last quarter. Arizona State Retirement System raised its stake in AAR by 1.4% in the third quarter. Arizona State Retirement System now owns 10,683 shares of the aerospace company's stock worth $958,000 after buying an additional 147 shares in the last quarter. CWM LLC raised its stake in AAR by 19.3% in the fourth quarter. CWM LLC now owns 950 shares of the aerospace company's stock worth $79,000 after buying an additional 154 shares in the last quarter. Amalgamated Bank lifted its holdings in AAR by 1.7% in the third quarter. Amalgamated Bank now owns 10,243 shares of the aerospace company's stock worth $918,000 after buying an additional 175 shares during the period. Finally, Morse Asset Management Inc purchased a new stake in AAR in the third quarter worth about $27,000. Institutional investors own 90.74% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on AIR shares. Zacks Research lowered AAR from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Truist Financial upgraded AAR to a "strong-buy" rating in a research report on Friday. Wall Street Zen raised AAR from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 25th. Jefferies Financial Group increased their price objective on AAR to $150.00 and gave the stock a "buy" rating in a report on Tuesday, March 24th. Finally, The Goldman Sachs Group started coverage on shares of AAR in a report on Monday, January 26th. They set a "neutral" rating and a $121.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $131.20.

Insider Buying and Selling

In related news, CEO John Mcclain Holmes III sold 26,175 shares of the business's stock in a transaction that occurred on Friday, March 27th. The shares were sold at an average price of $107.60, for a total value of $2,816,430.00. Following the completion of the transaction, the chief executive officer directly owned 235,064 shares in the company, valued at $25,292,886.40. The trade was a 10.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Sarah Louise Flanagan sold 10,750 shares of AAR stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $108.56, for a total value of $1,167,020.00. Following the completion of the sale, the chief financial officer directly owned 32,848 shares of the company's stock, valued at approximately $3,565,978.88. The trade was a 24.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 96,925 shares of company stock worth $10,728,050. Corporate insiders own 3.60% of the company's stock.

AAR Stock Down 0.6%

Shares of NYSE:AIR opened at $109.68 on Tuesday. The company has a current ratio of 2.70, a quick ratio of 1.23 and a debt-to-equity ratio of 0.54. The stock has a fifty day simple moving average of $113.00 and a two-hundred day simple moving average of $98.94. AAR Corp. has a 12-month low of $55.90 and a 12-month high of $127.21. The stock has a market capitalization of $4.36 billion, a price-to-earnings ratio of 24.32 and a beta of 1.14.

AAR (NYSE:AIR - Get Free Report) last posted its quarterly earnings results on Tuesday, March 24th. The aerospace company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.04. The firm had revenue of $845.10 million during the quarter, compared to analyst estimates of $812.58 million. AAR had a return on equity of 12.39% and a net margin of 5.46%.AAR's quarterly revenue was up 24.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.99 EPS. On average, research analysts anticipate that AAR Corp. will post 4.79 earnings per share for the current fiscal year.

AAR Profile

AAR Corp. NYSE: AIR is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.

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