FTAI Aviation (NASDAQ:FTAI) Stock Price Down 7% - Here's Why

Key Points

• FTAI Aviation shares fell 7% on Wednesday, trading as low as $210.64 after closing at $227.55 the prior day, on lighter-than-average volume.
• Recent analyst actions were mixed, but the stock still carries a Moderate Buy consensus with a $326.88 price target. However, Zacks Research and Weiss Ratings both downgraded the name to hold.
• The company’s latest quarterly results missed expectations, with EPS of $1.29 versus $1.61 expected, even though revenue rose 65.4% year over year to $830.7 million.

FTAI Aviation Ltd. (NASDAQ:FTAI - Get Free Report)'s share price was down 7% during trading on Wednesday . The company traded as low as $210.64 and last traded at $211.55. Approximately 706,539 shares traded hands during trading, a decline of 54% from the average daily volume of 1,524,142 shares. The stock had previously closed at $227.55.

Analyst Ratings Changes

A number of research firms have recently weighed in on FTAI. Zacks Research lowered FTAI Aviation from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Weiss Ratings cut shares of FTAI Aviation from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, July 2nd. BTIG Research increased their price objective on shares of FTAI Aviation from $335.00 to $340.00 and gave the stock a "buy" rating in a research note on Friday, March 13th. Jefferies Financial Group reissued a "buy" rating and issued a $400.00 target price on shares of FTAI Aviation in a report on Sunday, May 3rd. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $319.00 price target on shares of FTAI Aviation in a report on Friday, May 8th. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, FTAI Aviation presently has a consensus rating of "Moderate Buy" and a consensus price target of $326.88.

FTAI Aviation Stock Performance

The stock has a market cap of $21.65 billion, a price-to-earnings ratio of 41.88, a P/E/G ratio of 0.97 and a beta of 1.46. The company has a quick ratio of 2.48, a current ratio of 5.24 and a debt-to-equity ratio of 8.00. The company has a 50 day simple moving average of $252.39 and a 200 day simple moving average of $251.98.

FTAI Aviation (NASDAQ:FTAI - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $1.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.61 by ($0.32). The company had revenue of $830.70 million for the quarter. FTAI Aviation had a net margin of 18.92% and a return on equity of 181.43%. The company's revenue was up 65.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.87 earnings per share. As a group, equities research analysts forecast that FTAI Aviation Ltd. will post 6.77 EPS for the current year.

FTAI Aviation Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Wednesday, May 13th were paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, May 13th. FTAI Aviation's payout ratio is presently 31.75%.

Insider Buying and Selling at FTAI Aviation

In related news, Director Martin Tuchman sold 143,584 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $242.44, for a total transaction of $34,810,504.96. Following the sale, the director owned 236,302 shares in the company, valued at $57,289,056.88. The trade was a 37.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Judith A. Hannaway sold 255 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $253.89, for a total value of $64,741.95. Following the sale, the director owned 3,012 shares in the company, valued at $764,716.68. This represents a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 254,515 shares of company stock valued at $61,599,445 over the last quarter. Company insiders own 1.35% of the company's stock.

Institutional Trading of FTAI Aviation

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Capital World Investors lifted its holdings in FTAI Aviation by 41.1% during the 4th quarter. Capital World Investors now owns 8,916,830 shares of the financial services provider's stock worth $1,755,290,000 after buying an additional 2,596,265 shares during the period. Norges Bank acquired a new stake in shares of FTAI Aviation in the fourth quarter valued at about $262,393,000. Northern Right Capital Management L.P. raised its position in shares of FTAI Aviation by 884.1% during the second quarter. Northern Right Capital Management L.P. now owns 885,675 shares of the financial services provider's stock worth $101,888,000 after acquiring an additional 795,675 shares during the last quarter. Rubric Capital Management LP raised its position in shares of FTAI Aviation by 28.3% during the second quarter. Rubric Capital Management LP now owns 3,394,080 shares of the financial services provider's stock worth $390,455,000 after acquiring an additional 749,080 shares during the last quarter. Finally, Oaktree Capital Management LP acquired a new position in shares of FTAI Aviation in the third quarter worth approximately $97,642,000. 88.96% of the stock is currently owned by institutional investors.

FTAI Aviation Company Profile

FTAI Aviation NASDAQ: FTAI is a commercial aircraft leasing company that acquires, manages and leases wide-body jet aircraft to airlines globally. The company's portfolio is focused on modern, fuel-efficient Boeing models, including the 767, 777 and 787 families, which are deployed under long-term operating leases. By concentrating on in-demand wide-body assets, FTAI Aviation seeks to deliver stable cash flows through lease rentals and maintenance reserve collections while providing airlines with flexible fleet solutions.

In addition to lease origination, FTAI Aviation offers end-to-end asset management services.

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