KeyCorp Forecasts Strong Price Appreciation for AAR (NYSE:AIR) Stock

Key Points

• KeyCorp raised its price target on AAR from $120 to $132 and kept an "overweight" rating, with analysts' average target at $131.20 implying roughly a 9.3% upside and a consensus "Moderate Buy."
• AAR beat quarterly estimates with $1.25 EPS and $845.1M revenue—up 24.6% year-over-year—and analysts expect about $3.77 in EPS for the current fiscal year.
• While institutional ownership is high (around 90.7%) and several funds have increased stakes, insiders sold roughly 187,295 shares last quarter, including the CEO's sale of 60,000 shares, signaling notable insider divestment.

AAR (NYSE:AIR - Get Free Report) had its target price increased by stock analysts at KeyCorp from $120.00 to $132.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the aerospace company's stock. KeyCorp's target price would suggest a potential upside of 9.30% from the stock's previous close.

Several other analysts have also recently issued reports on the stock. Truist Financial reaffirmed a "buy" rating and issued a $128.00 price target (up from $107.00) on shares of AAR in a report on Friday, March 6th. Royal Bank Of Canada upped their price target on shares of AAR from $105.00 to $125.00 and gave the company an "outperform" rating in a report on Wednesday, March 25th. Weiss Ratings raised shares of AAR from a "hold (c+)" rating to a "buy (b)" rating in a report on Friday, March 27th. Zacks Research cut shares of AAR from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Finally, Jefferies Financial Group increased their target price on shares of AAR to $150.00 and gave the stock a "buy" rating in a report on Tuesday, March 24th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $131.20.

AAR Stock Performance

Shares of AIR stock opened at $120.77 on Thursday. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.70 and a quick ratio of 1.23. The company's fifty day moving average price is $111.31 and its two-hundred day moving average price is $95.05. The firm has a market capitalization of $4.80 billion, a P/E ratio of 26.78 and a beta of 1.20. AAR has a 12 month low of $47.95 and a 12 month high of $122.97.

AAR (NYSE:AIR - Get Free Report) last announced its earnings results on Tuesday, March 24th. The aerospace company reported $1.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.21 by $0.04. AAR had a return on equity of 12.39% and a net margin of 5.46%.The business had revenue of $845.10 million for the quarter, compared to analyst estimates of $812.58 million. During the same period in the previous year, the company earned $0.99 earnings per share. The company's revenue for the quarter was up 24.6% compared to the same quarter last year. On average, research analysts anticipate that AAR will post 3.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In other AAR news, CEO John Mcclain Holmes III sold 60,000 shares of the stock in a transaction that occurred on Thursday, March 26th. The stock was sold at an average price of $112.41, for a total transaction of $6,744,600.00. Following the transaction, the chief executive officer owned 235,064 shares in the company, valued at $26,423,544.24. This trade represents a 20.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Sarah Louise Flanagan sold 10,750 shares of the firm's stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $108.56, for a total transaction of $1,167,020.00. Following the completion of the sale, the chief financial officer owned 32,848 shares in the company, valued at approximately $3,565,978.88. The trade was a 24.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 187,295 shares of company stock worth $19,680,921. Insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AIR. Wellington Management Group LLP increased its stake in shares of AAR by 144.3% in the third quarter. Wellington Management Group LLP now owns 1,486,775 shares of the aerospace company's stock valued at $133,319,000 after buying an additional 878,188 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its stake in AAR by 297.4% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 594,668 shares of the aerospace company's stock valued at $49,233,000 after acquiring an additional 445,026 shares during the period. UBS Group AG raised its stake in AAR by 709.2% in the 3rd quarter. UBS Group AG now owns 488,239 shares of the aerospace company's stock valued at $43,780,000 after acquiring an additional 427,906 shares during the period. State Street Corp raised its stake in AAR by 17.1% in the 4th quarter. State Street Corp now owns 2,320,927 shares of the aerospace company's stock valued at $192,150,000 after acquiring an additional 339,595 shares during the period. Finally, Franklin Resources Inc. raised its stake in AAR by 36.9% in the 3rd quarter. Franklin Resources Inc. now owns 1,154,167 shares of the aerospace company's stock valued at $107,752,000 after acquiring an additional 311,258 shares during the period. 90.74% of the stock is owned by institutional investors.

About AAR

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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