AAON (NASDAQ:AAON) Stock Falls 7.4% - What's Next?

Key Points

• AAON shares fell 7.4% to about $74.59, trading below both their 50-day ($81.71) and 200-day ($101.87) moving averages.
• Analysts remain moderately bullish overall, with four Buy ratings and three Holds, but several firms recently cut their price targets. The average target is $120, implying substantial potential upside.
• AAON reported strong quarterly results, with revenue rising 101.2% year over year to $626.98 million and EPS of $0.69 versus estimates of $0.51. The company also pays a $0.10 quarterly dividend, while insiders recently purchased shares.

AAON, Inc. (NASDAQ:AAON - Get Free Report) dropped 7.4% on Thursday. The stock traded as low as $75.45 and last traded at $74.5940. 603,684 shares traded hands during trading, a decline of 43% from the average session volume of 1,055,154 shares. The stock had previously closed at $80.53.

Wall Street Analysts Forecast Growth

Several research analysts have commented on AAON shares. Zacks Research downgraded AAON from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 7th. Weiss Ratings reissued a "hold (c)" rating on shares of AAON in a report on Monday. DA Davidson reissued a "buy" rating and set a $110.00 target price on shares of AAON in a research report on Tuesday, September 15th. Robert W. Baird lowered their price target on AAON from $150.00 to $135.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $115.00 price target (down from $125.00) on shares of AAON in a report on Wednesday. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $120.00.

AAON Trading Down 7.4%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 2.01 and a current ratio of 3.01. The firm has a market cap of $6.15 billion, a price-to-earnings ratio of 38.87, a P/E/G ratio of 1.59 and a beta of 1.41. The company's 50-day moving average is $81.71 and its 200-day moving average is $101.87.

AAON (NASDAQ:AAON - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The construction company reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.18. AAON had a return on equity of 17.32% and a net margin of 8.24%. The firm had revenue of $626.98 million during the quarter, compared to analyst estimates of $508.82 million. During the same period last year, the company earned $0.22 earnings per share. The company's revenue was up 101.2% on a year-over-year basis. On average, research analysts predict that AAON, Inc. will post 2.35 earnings per share for the current year.

AAON Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, September 4th. AAON's dividend payout ratio is presently 20.83%.

Insider Buying and Selling at AAON

In other news, EVP Matthew Shaub purchased 457 shares of AAON stock in a transaction dated Friday, August 28th. The shares were bought at an average cost of $76.42 per share, with a total value of $34,923.94. Following the completion of the transaction, the executive vice president directly owned 3,136 shares in the company, valued at $239,653.12. This trade represents a 17.06% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David Stewart acquired 1,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average price of $74.66 per share, with a total value of $74,660.00. Following the transaction, the director owned 4,000 shares in the company, valued at $298,640. This represents a 33.33% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 18.09% of the company's stock.

Institutional Investors Weigh In On AAON

Several large investors have recently made changes to their positions in the stock. Fort Washington Investment Advisors Inc. OH acquired a new stake in shares of AAON in the third quarter valued at about $15,090,000. Central Pacific Bank Trust Division bought a new stake in AAON during the third quarter worth about $103,000. Tidal Investments LLC boosted its position in AAON by 0.6% during the second quarter. Tidal Investments LLC now owns 153,244 shares of the construction company's stock valued at $19,441,000 after purchasing an additional 864 shares during the last quarter. Engineers Gate Manager LP acquired a new position in AAON during the second quarter valued at approximately $1,003,000. Finally, NewEdge Advisors LLC boosted its position in AAON by 7.7% during the second quarter. NewEdge Advisors LLC now owns 17,604 shares of the construction company's stock valued at $2,233,000 after purchasing an additional 1,253 shares during the last quarter. Institutional investors own 70.81% of the company's stock.

AAON Company Profile

AAON, Inc NASDAQ: AAON designs and manufactures high-efficiency heating, ventilation, and air conditioning (HVAC) equipment for commercial and industrial applications. The company is headquartered in Tulsa, Oklahoma, and was founded in 1988 by Norm Asbjornson.

Its product portfolio includes rooftop units, air-handling units, condensing units, heat pumps, chillers, and related HVAC components. AAON's equipment is used in applications such as office buildings, schools, healthcare facilities, retail properties, data centers, and other commercial or industrial structures.

AAON sells its products primarily through manufacturer representatives and other distribution channels serving customers in the United States and Canada.

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