Loar (NYSE:LOAR) Shares Gap Up - Should You Buy?

Key Points

• Loar shares jumped 9%, opening at $65.41 after closing at $62.11, and later trading near $67.02.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $86, though recent revisions included downgrades and a lower $72 target from Morgan Stanley.
• Loar reported stronger-than-expected quarterly results, with EPS of $0.38 versus $0.31 expected and revenue up 39.4% year over year to $171.58 million; its valuation remains elevated at a P/E ratio of 94.11.

Loar Holdings Inc. (NYSE:LOAR - Get Free Report)'s share price gapped up prior to trading on Monday. The stock had previously closed at $62.11, but opened at $65.41. Loar shares last traded at $67.0190, with a volume of 225,630 shares changing hands.

Analyst Ratings Changes

Several research firms recently commented on LOAR. Zacks Research lowered shares of Loar from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 9th. Royal Bank Of Canada upped their price target on shares of Loar from $80.00 to $85.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Jefferies Financial Group reissued a "buy" rating and set a $88.00 price objective on shares of Loar in a research note on Sunday, August 9th. Morgan Stanley reduced their price objective on Loar from $82.00 to $72.00 and set an "equal weight" rating on the stock in a research report on Friday, October 16th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Loar in a report on Tuesday, October 6th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Loar has a consensus rating of "Moderate Buy" and an average price target of $86.00.

Loar Trading Up 9.0%

The company has a debt-to-equity ratio of 0.79, a quick ratio of 3.24 and a current ratio of 4.91. The company has a market cap of $6.35 billion, a P/E ratio of 94.11 and a beta of 0.63. The business has a fifty day simple moving average of $65.03 and a 200 day simple moving average of $66.71.

Loar (NYSE:LOAR - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.31 by $0.07. Loar had a return on equity of 9.37% and a net margin of 11.60%. The company had revenue of $171.58 million for the quarter, compared to analysts' expectations of $162.80 million. During the same period last year, the business posted $0.23 earnings per share. The firm's quarterly revenue was up 39.4% compared to the same quarter last year. Loar has set its FY 2026 guidance at 1.320-1.360 EPS. Analysts anticipate that Loar Holdings Inc. will post 1.20 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its stake in Loar by 21.5% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 14,150 shares of the company's stock valued at $871,000 after buying an additional 2,500 shares in the last quarter. VestGen Advisors LLC bought a new position in shares of Loar during the 3rd quarter valued at about $211,000. Moody Aldrich Partners LLC boosted its position in shares of Loar by 4.2% during the 3rd quarter. Moody Aldrich Partners LLC now owns 68,744 shares of the company's stock valued at $4,229,000 after purchasing an additional 2,770 shares in the last quarter. Fifth Third Wealth Advisors LLC acquired a new position in shares of Loar in the 3rd quarter worth approximately $351,000. Finally, Axxcess Wealth Management LLC bought a new stake in shares of Loar in the 3rd quarter worth approximately $272,000.

About Loar

Loar Holdings Inc is an aerospace and defense company that designs, manufactures and sells highly engineered, mission-critical components and systems. Its products are used in commercial and military aircraft, business jets, general aviation, space vehicles and other defense applications.

The company's product portfolio includes specialized components such as shock absorbers, vibration-control products, elastomeric components, seals, electronic systems and other aircraft and defense parts.

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