Royal Bank of Canada Sells 22,877 Shares of AAON, Inc. $AAON

Key Points

• Royal Bank of Canada reduced its AAON stake by 18.5%, selling 22,877 shares and retaining 100,811 shares valued at approximately $8.3 million. Institutional investors collectively own 70.81% of the company.
• AAON reported a strong second quarter, with revenue up 101.2% year over year to $627.0 million and EPS of $0.69, beating estimates. Backlog reached roughly $2.0 billion, and the company raised its full-year sales-growth outlook to 55%–60%.
• Investors remain focused on margins and valuation: AAON’s full-year gross-margin guidance declined to about 25%–26%, while insider selling and a premium valuation have added pressure. Analysts maintain a “Moderate Buy” consensus, with an average price target of $112.

Royal Bank of Canada cut its holdings in AAON, Inc. (NASDAQ:AAON - Free Report) by 18.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 100,811 shares of the construction company's stock after selling 22,877 shares during the period. Royal Bank of Canada owned about 0.12% of AAON worth $8,341,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. Wellington Management Group LLP boosted its position in AAON by 44.3% in the fourth quarter. Wellington Management Group LLP now owns 6,839,277 shares of the construction company's stock worth $521,495,000 after purchasing an additional 2,099,385 shares during the last quarter. Wasatch Advisors LP increased its position in shares of AAON by 23.8% during the 1st quarter. Wasatch Advisors LP now owns 2,268,118 shares of the construction company's stock valued at $187,687,000 after purchasing an additional 436,704 shares during the last quarter. First Trust Advisors LP increased its position in shares of AAON by 22.1% during the 1st 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. Conestoga Capital Advisors LLC raised its stake in shares of AAON by 5.0% during the 4th quarter. Conestoga Capital Advisors LLC now owns 1,776,013 shares of the construction company's stock worth $135,421,000 after purchasing an additional 84,693 shares during the period. Finally, Impax Asset Management Group plc boosted its holdings in shares of AAON by 53.2% in the 4th quarter. Impax Asset Management Group plc now owns 1,403,648 shares of the construction company's stock worth $107,028,000 after buying an additional 487,601 shares during the last quarter. 70.81% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about AAON

Here are the key news stories impacting AAON this week:

• Positive Sentiment: Record Q2 performance: Revenue more than doubled year over year to $627.0 million, while operating income rose 192% to $68.9 million. Diluted EPS increased to $0.68-$0.69 from $0.19-$0.22 a year earlier, exceeding analysts’ estimates. AAON Reports Record Second Quarter 2026 Results
• Positive Sentiment: Demand and cash flow remain strong: Backlog was approximately $2.0 billion, nearly double the prior year, and first-half operating cash flow improved to $55 million from a $31 million use of cash in the prior-year period. AAON also raised its full-year sales-growth outlook to 55%-60%. AAON Reports Record Q2 2026 Sales and Raises Full Year Outlook
• Neutral Sentiment: Institutional positioning was mixed: Wellington Management, Capital World Investors and State Street added shares, while Capital International Investors, FMR and other funds reduced or eliminated positions. This suggests differing views on valuation and execution.
• Negative Sentiment: Margin guidance became the key concern: Full-year gross-margin guidance of approximately 25%-26% is below the roughly 27%-28% outlook previously cited. Although quarterly margins benefited from stronger volume and operating leverage, investors remain concerned that capacity expansion, outsourcing and ramp-related costs could limit earnings growth. AAON Reports Strong Q2 Results but Lowers FY26 Margin Guidance
• Negative Sentiment: High expectations and insider selling added pressure: With AAON trading at a premium valuation after substantial gains, investors appear to be taking profits and demanding evidence of sustainable margin expansion. Quiver data showed 17 insider open-market sales and no purchases over the past six months, including sales by senior executives. AAON Slides Ahead of Q2 Report

AAON Stock Performance

Shares of AAON stock opened at $89.24 on Tuesday. The stock has a market capitalization of $7.31 billion, a P/E ratio of 62.41, a PEG ratio of 2.64 and a beta of 1.45. The company has a current ratio of 2.62, a quick ratio of 1.75 and a debt-to-equity ratio of 0.46. The firm's 50 day moving average is $115.40 and its 200 day moving average is $105.91. AAON, Inc. has a 12 month low of $62.00 and a 12 month high of $150.46.

AAON (NASDAQ:AAON - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The construction company reported $0.69 EPS for the quarter, topping the consensus estimate of $0.51 by $0.18. AAON had a net margin of 7.30% and a return on equity of 13.67%. The company had revenue of $626.98 million during the quarter, compared to the consensus estimate of $508.82 million. During the same period last year, the firm earned $0.22 EPS. AAON's revenue for the quarter was up 101.2% on a year-over-year basis. On average, sell-side analysts anticipate that AAON, Inc. will post 2.24 earnings per share for the current year.

Insider Transactions at AAON

In other AAON news, insider Casey Kidwell sold 3,153 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $138.30, for a total value of $436,059.90. Following the completion of the transaction, the insider owned 13,463 shares in the company, valued at $1,861,932.90. This trade represents a 18.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gary D. Fields sold 21,173 shares of AAON stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $140.34, for a total value of $2,971,418.82. Following the transaction, the director directly owned 34,252 shares of the company's stock, valued at $4,806,925.68. The trade was a 38.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 77,637 shares of company stock valued at $10,807,621. 18.09% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms recently weighed in on AAON. Oppenheimer restated an "outperform" rating on shares of AAON in a research report on Friday, May 8th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of AAON in a research report on Tuesday, July 14th. Zacks Research cut shares of AAON from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 7th. Finally, KeyCorp started coverage on shares of AAON in a research report on Thursday, July 23rd. They set a "sector weight" rating for the company. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $112.00.

AAON Profile

AAON, Inc NASDAQ: AAON is a U.S.-based designer and manufacturer of heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. The company's product portfolio focuses on rooftop packaged units, water-source heat pumps, chillers and custom-engineered solutions that cater to a wide array of building types, from office complexes and schools to data centers and healthcare facilities.

AAON's core offerings include rooftop units available in gas, electric and dual-fuel configurations, precision air-conditioning systems for temperature- and humidity-sensitive environments, and modular chillers suited for both indoor and outdoor installations.

Want to see what other hedge funds are holding AAON? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for AAON, Inc. (NASDAQ:AAON - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source