AAON (NASDAQ:AAON) Stock Price Up 4.2% - Here's Why

Key Points

• AAON shares rose 4.2% to about $82.61 in midday trading, although volume was 69% below the average session level.
• Analysts maintain a consensus “Moderate Buy” rating with a $123.33 price target. The company’s latest quarterly results exceeded expectations, with EPS of $0.69 versus $0.51 expected and revenue up 101.2% year over year.
• AAON declared a quarterly dividend of $0.10 per share, equivalent to a 0.5% yield, while company insiders recently increased their holdings through stock purchases.

AAON, Inc. (NASDAQ:AAON - Get Free Report)'s share price shot up 4.2% on Wednesday . The stock traded as high as $82.43 and last traded at $82.6090. Approximately 330,352 shares were traded during mid-day trading, a decline of 69% from the average session volume of 1,052,696 shares. The stock had previously closed at $79.27.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of AAON in a report on Tuesday, July 14th. DA Davidson reiterated a "buy" rating and set a $110.00 price target on shares of AAON in a research report on Tuesday, September 15th. Robert W. Baird cut their price target on AAON from $150.00 to $135.00 and set an "outperform" rating on the stock in a report on Tuesday, August 11th. KeyCorp restated a "sector weight" rating on shares of AAON in a research report on Thursday, August 13th. Finally, Zacks Research downgraded AAON from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 7th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $123.33.

AAON Trading Up 4.2%

The stock has a market capitalization of $6.81 billion, a P/E ratio of 42.90, a price-to-earnings-growth ratio of 1.45 and a beta of 1.41. The business has a 50 day simple moving average of $86.61 and a 200-day simple moving average of $101.88. The company has a debt-to-equity ratio of 0.43, a quick ratio of 2.01 and a current ratio of 3.01.

AAON (NASDAQ:AAON - Get Free Report) last posted 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. The company had revenue of $626.98 million for the quarter, compared to the consensus estimate of $508.82 million. AAON had a return on equity of 17.32% and a net margin of 8.24%.The company's quarterly revenue was up 101.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.22 EPS. On average, analysts predict that AAON, Inc. will post 2.29 EPS for the current year.

AAON Announces Dividend

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

Insider Buying and Selling

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

Institutional Investors Weigh In On AAON

Institutional investors and hedge funds have recently modified their holdings of the stock. Royce & Associates LP boosted its stake in shares of AAON by 9.6% during the 4th quarter. Royce & Associates LP now owns 467,496 shares of the construction company's stock valued at $35,647,000 after buying an additional 40,892 shares during the period. Empowered Funds LLC purchased a new stake in shares of AAON during the first quarter worth $1,312,000. Wasatch Advisors LP boosted its position in AAON by 3.1% during the second quarter. Wasatch Advisors LP now owns 2,338,517 shares of the construction company's stock valued at $296,664,000 after purchasing an additional 70,399 shares during the last quarter. California State Teachers Retirement System boosted its position in AAON by 22.7% during the first quarter. California State Teachers Retirement System now owns 80,436 shares of the construction company's stock valued at $6,656,000 after purchasing an additional 14,878 shares during the last quarter. Finally, Kettle Hill Capital Management LLC purchased a new position in AAON in the fourth quarter valued at about $2,292,000. 70.81% of the stock is owned by institutional investors and hedge funds.

About AAON

AAON, Inc is a manufacturer of heating, ventilation and air-conditioning (HVAC) equipment for commercial and industrial applications. The company designs and produces systems intended to support climate control, indoor air quality and energy efficiency in a range of buildings and facilities.

Its product portfolio includes rooftop units, air-handling units, condensing units, heat pumps, chillers and related HVAC controls and equipment. AAON sells its products through manufacturer representatives and distributors, serving customers primarily in North America.

Founded in 1988 by Norman Asbjornson and headquartered in Tulsa, Oklahoma, AAON operates manufacturing facilities in the United States.

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