Loar (NYSE:LOAR) Shares Gap Down - Time to Sell?

Key Points

• Loar shares gapped down at the open, falling from a prior close of $71.41 to $69.31 and last trading near $68.98, down about 1.5% on the day.
• Despite the pullback, analyst sentiment remains constructive: the stock has a Moderate Buy consensus with an average price target of $84.40, and recent rating changes included upgrades from Zacks and higher targets from Citigroup and Morgan Stanley.
• Loar’s latest earnings were solid, with Q1 EPS of $0.34 beating estimates and revenue rising 36.1% year over year, while the company also guided FY2026 EPS at 1.260–1.300.

Loar Holdings Inc. (NYSE:LOAR - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $71.41, but opened at $69.31. Loar shares last traded at $68.9780, with a volume of 125,263 shares.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on LOAR. Jefferies Financial Group set a $75.00 target price on Loar in a research report on Sunday, May 10th. Zacks Research raised Loar from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 7th. Morgan Stanley set a $82.00 price target on Loar and gave the company an "equal weight" rating in a research note on Wednesday. Royal Bank Of Canada cut their price objective on Loar from $90.00 to $80.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. Finally, Citigroup raised their price objective on Loar from $71.00 to $87.00 and gave the stock a "buy" rating in a research note on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $84.40.

Loar Trading Down 1.5%

The firm has a market cap of $6.59 billion, a PE ratio of 99.06 and a beta of 0.47. The company has a 50-day simple moving average of $67.96 and a 200 day simple moving average of $66.65. The company has a current ratio of 4.56, a quick ratio of 2.89 and a debt-to-equity ratio of 0.80.

Loar (NYSE:LOAR - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.19. Loar had a net margin of 12.64% and a return on equity of 8.47%. The firm had revenue of $156.09 million during the quarter, compared to analysts' expectations of $149.71 million. During the same period in the previous year, the business posted $0.16 EPS. The business's revenue was up 36.1% compared to the same quarter last year. Loar has set its FY 2026 guidance at 1.260-1.300 EPS. As a group, sell-side analysts forecast that Loar Holdings Inc. will post 1.16 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Loar news, Director Taiwo K. Danmola sold 35,000 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $60.59, for a total value of $2,120,650.00. Following the completion of the transaction, the director owned 54,286 shares in the company, valued at approximately $3,289,188.74. This represents a 39.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 20.10% of the company's stock.

Hedge Funds Weigh In On Loar

Institutional investors and hedge funds have recently modified their holdings of the business. Rakuten Securities Inc. purchased a new position in Loar during the second quarter worth approximately $27,000. Fifth Third Bancorp acquired a new position in shares of Loar during the 4th quarter worth approximately $28,000. Sunbelt Securities Inc. raised its stake in shares of Loar by 238.3% during the 4th quarter. Sunbelt Securities Inc. now owns 592 shares of the company's stock worth $40,000 after buying an additional 417 shares during the period. Danske Bank A S purchased a new position in shares of Loar during the 4th quarter valued at approximately $62,000. Finally, Tower Research Capital LLC TRC lifted its position in shares of Loar by 347.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 970 shares of the company's stock valued at $84,000 after buying an additional 753 shares in the last quarter.

Loar Company Profile

Loar Holdings Inc, through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices.

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