AAON (NASDAQ:AAON) Shares Gap Up - Time to Buy?

Key Points

• AAON shares opened higher, rising from a prior close of $75.83 to $78.68 before trading near $76.09. The company has a $6.17 billion market capitalization and its shares remain below the 200-day moving average of $97.84.
• Analysts maintain a broadly positive view, with four Buy ratings and three Holds producing a “Moderate Buy” consensus and a $120 price target. However, several firms recently lowered their targets, and Zacks downgraded the stock to Hold.
• AAON reported strong quarterly results, with EPS of $0.69 beating the $0.51 estimate and revenue rising 101.2% year over year to $626.98 million. The company also pays a $0.10 quarterly dividend, while insiders own 18.09% of shares and recently made additional purchases.

Shares of AAON, Inc. (NASDAQ:AAON - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $75.83, but opened at $78.68. AAON shares last traded at $76.0920, with a volume of 31,649 shares.

Wall Street Analyst Weigh In

AAON has been the topic of several recent analyst reports. Zacks Research cut AAON from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 7th. Oppenheimer restated an "outperform" rating and set a $115.00 price objective (down from $125.00) on shares of AAON in a research report on Wednesday, October 14th. Weiss Ratings reiterated a "hold (c)" rating on shares of AAON in a report on Monday, October 12th. DA Davidson restated a "buy" rating and issued a $110.00 price target on shares of AAON in a research report on Tuesday, September 15th. Finally, Robert W. Baird decreased their target price on AAON from $150.00 to $135.00 and set an "outperform" rating on the stock in a report on Tuesday, August 11th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, AAON currently has a consensus rating of "Moderate Buy" and a consensus price target of $120.00.

AAON Stock Down 1.4%

The company has a market cap of $6.17 billion, a price-to-earnings ratio of 38.93 and a beta of 1.41. The company's fifty day moving average price is $79.16 and its two-hundred day moving average price is $97.84.

AAON (NASDAQ:AAON - Get Free Report) last announced its earnings results on Monday, August 10th. The construction company reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.18. The company had revenue of $626.98 million for the quarter, compared to analyst estimates of $508.82 million. During the same quarter in the previous year, the company posted $0.22 earnings per share. AAON's revenue for the quarter was up 101.2% on a year-over-year basis. Research analysts forecast that AAON, Inc. will post 2.35 earnings per share for the current year.

AAON Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.40 annualized dividend and a dividend yield of 0.5%. AAON's dividend payout ratio is currently 20.83%.

Insider Transactions at AAON

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

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. SBI Securities Co. Ltd. increased its position in shares of AAON by 363.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 477 shares of the construction company's stock valued at $39,000 after purchasing an additional 374 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of AAON by 48.0% during the first quarter. EverSource Wealth Advisors LLC now owns 549 shares of the construction company's stock worth $45,000 after purchasing an additional 178 shares in the last quarter. NI Acquisitions Company LLC bought a new stake in shares of AAON during the 2nd quarter worth $102,000. Summit Securities Group LLC boosted its holdings in shares of AAON by 73.9% in the 1st quarter. Summit Securities Group LLC now owns 1,024 shares of the construction company's stock worth $85,000 after purchasing an additional 435 shares in the last quarter. Finally, Central Pacific Bank Trust Division purchased a new position in shares of AAON during the third quarter worth approximately $103,000. Institutional investors own 70.81% of the company's stock.

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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