AAON (NASDAQ:AAON) Sets New 1-Year Low - Should You Sell?

Key Points

• AAON shares hit a new 52-week low, trading near $60.19 after a previous close of $69.08; the stock is down 17.4%.
• Despite the selloff, analysts rate AAON a Moderate Buy, with an average price target of $120. The ratings include four Buys and three Holds.
• Recent results showed quarterly EPS of $0.69, above the $0.51 estimate, while revenue rose 101.2% year over year to $626.98 million. The company also pays a $0.10 quarterly dividend.

AAON, Inc. (NASDAQ:AAON - Get Free Report) shares hit a new 52-week low on Wednesday. The stock traded as low as $61.77 and last traded at $60.1890, with a volume of 152,497 shares trading hands. The stock had previously closed at $69.08.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. DA Davidson initiated coverage on shares of AAON in a research note on Tuesday, September 15th. They set a "buy" rating and a $110.00 target price for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of AAON in a research note on Monday, October 12th. Oppenheimer reissued an "outperform" rating and issued a $115.00 price target (down from $125.00) on shares of AAON in a report on Wednesday, October 14th. Robert W. Baird cut their price objective on shares of AAON from $150.00 to $135.00 and set an "outperform" rating for the company in a research report on Tuesday, August 11th. Finally, KeyCorp restated a "sector weight" rating on shares of AAON in a report on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $120.00.

AAON Stock Down 17.4%

The company has a current ratio of 3.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.43. The stock has a market cap of $4.71 billion, a P/E ratio of 29.85, a PEG ratio of 1.26 and a beta of 1.45. The firm has a 50-day simple moving average of $78.28 and a two-hundred day simple moving average of $97.51.

AAON (NASDAQ:AAON - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The construction company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.51 by $0.18. AAON had a net margin of 8.24% and a return on equity of 17.32%. The business had revenue of $626.98 million for the quarter, compared to the consensus estimate of $508.82 million. During the same period in the prior year, the company posted $0.22 earnings per share. AAON's revenue was up 101.2% compared to the same quarter last year. Equities research analysts expect that AAON, Inc. will post 2.35 earnings per share for the current fiscal year.

AAON Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Friday, September 4th. AAON's dividend payout ratio is presently 20.83%.

Insider Activity at AAON

In related news, EVP Matthew Shaub purchased 457 shares of the business's stock in a transaction that occurred on Friday, August 28th. The stock was acquired at an average cost of $76.42 per share, for a total transaction of $34,923.94. Following the completion of the purchase, the executive vice president owned 3,136 shares in the company, valued at approximately $239,653.12. This represents a 17.06% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David Stewart purchased 1,000 shares of AAON stock in a transaction that occurred on Tuesday, September 15th. The shares were bought at an average cost of $74.66 per share, for a total transaction of $74,660.00. Following the transaction, the director directly owned 4,000 shares of the company's stock, valued at $298,640. This represents a 33.33% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 18.09% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AAON

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wasatch Advisors LP increased its holdings in shares of AAON by 3.1% during the second quarter. Wasatch Advisors LP now owns 2,338,517 shares of the construction company's stock worth $296,664,000 after buying an additional 70,399 shares in the last quarter. First Trust Advisors LP boosted its holdings 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 acquiring an additional 364,101 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in shares of AAON by 38.1% during the 3rd quarter. Pictet Asset Management Holding SA now owns 1,220,470 shares of the construction company's stock valued at $101,006,000 after acquiring an additional 336,730 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in AAON during the 2nd quarter worth $55,284,000. Finally, American Capital Management Inc. bought a new stake in AAON during the 2nd quarter worth $47,595,000. 70.81% of the stock is owned by institutional investors and hedge funds.

About AAON

AAON, Inc designs and manufactures high-performance heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. Its product portfolio includes rooftop units, air-handling units, condensing units, chillers, geothermal heat pumps and related HVAC controls.

The company's systems are used in applications such as office buildings, schools, healthcare facilities, retail properties, manufacturing plants and other commercial structures. AAON emphasizes configurable equipment, energy efficiency and integrated controls designed to support indoor comfort and air quality.

AAON was founded in 1988 by Norman H.

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