AAR (NYSE:AIR) Stock Price Crosses Above 50-Day Moving Average - Should You Sell?

Key Points

• AAR shares rose 6.5% and moved above their 50-day moving average, trading as high as $117.89 versus the average of $109.55.
• The company beat quarterly expectations, reporting EPS of $1.49 against $1.30 expected and revenue of $918 million; revenue grew 24.1% year over year.
• Analyst views remain mixed: the stock carries a consensus “Hold” rating and a $140.60 average price target, with three Buy ratings and five Holds.

AAR Corp. (NYSE:AIR - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $109.55 and traded as high as $117.89. AAR shares last traded at $116.2950, with a volume of 435,742 shares traded.

Analysts Set New Price Targets

Several equities analysts recently weighed in on AIR shares. Wall Street Zen raised shares of AAR from a "hold" rating to a "buy" rating in a research note on Saturday, October 3rd. Royal Bank Of Canada reiterated an "outperform" rating and issued a $145.00 price target on shares of AAR in a research note on Monday, September 28th. KeyCorp reissued a "sector weight" rating on shares of AAR in a report on Wednesday, July 22nd. Guggenheim restated a "neutral" rating on shares of AAR in a research report on Tuesday, September 29th. Finally, Zacks Research lowered AAR from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $140.60.

AAR Stock Up 6.5%

The firm has a market capitalization of $4.67 billion, a PE ratio of 23.83 and a beta of 1.14. The company has a fifty day moving average price of $109.55 and a 200-day moving average price of $118.57. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.28 and a current ratio of 2.83.

AAR (NYSE:AIR - Get Free Report) last posted its earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share for the quarter, beating analysts' consensus estimates of $1.30 by $0.19. AAR had a net margin of 5.55% and a return on equity of 12.99%. The firm had revenue of $918.00 million during the quarter, compared to analyst estimates of $878.81 million. During the same period last year, the firm posted $1.08 earnings per share. AAR's revenue for the quarter was up 24.1% compared to the same quarter last year. As a group, analysts expect that AAR Corp. will post 5.89 earnings per share for the current year.

Insider Buying and Selling at AAR

In other AAR news, CEO John Holmes, III sold 35,000 shares of AAR stock in a transaction on Monday, October 26th. The shares were sold at an average price of $97.41, for a total value of $3,409,350.00. Following the completion of the transaction, the chief executive officer directly owned 406,362 shares of the company's stock, valued at $39,583,722.42. This trade represents a 7.93% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Ellen M. Lord sold 4,341 shares of the business's stock in a transaction dated Thursday, October 29th. The stock was sold at an average price of $104.64, for a total transaction of $454,242.24. Following the completion of the sale, the director owned 5,814 shares in the company, valued at approximately $608,376.96. This trade represents a 42.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 43,582 shares of company stock valued at $4,288,710 in the last quarter. 3.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in AAR during the second quarter worth approximately $925,068,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of AAR in the 2nd quarter valued at approximately $84,251,000. Bank of New York Mellon Corp bought a new stake in shares of AAR in the 2nd quarter valued at approximately $39,024,000. Bank of America Corp DE bought a new stake in shares of AAR in the 2nd quarter valued at approximately $33,649,000. Finally, Artemis Investment Management LLP boosted its holdings in shares of AAR by 1,031.6% in the 3rd quarter. Artemis Investment Management LLP now owns 229,783 shares of the aerospace company's stock worth $23,316,000 after purchasing an additional 209,477 shares during the period. Hedge funds and other institutional investors own 90.74% of the company's stock.

About AAR

AAR Corp. is a global provider of aviation services and products for commercial airlines, aircraft operators, original equipment manufacturers and government customers. Its offerings include aircraft parts and component distribution, repair and maintenance, engineering services, and supply-chain and inventory management.

The company also provides services to support government and defense aviation operations, including logistics and airlift-related support. AAR serves customers across multiple regions, with operations and facilities in the Americas, Europe and other international markets.

Founded in 1955, AAR began as a business supplying surplus aircraft parts and expanded into a broader aviation aftermarket and services provider.

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