StandardAero (NYSE:SARO) Sets New 12-Month Low - Here's Why

Key Points

• StandardAero shares fell 2.4% to $23.76, reaching a new 52-week low and trading well below their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $34.77, although Jefferies downgraded the stock to “Hold” and reduced its target to $30.
• The company recently exceeded quarterly earnings expectations, reporting $0.40 in EPS versus $0.32 expected and 4.6% year-over-year revenue growth; however, insiders have sold about $5.85 million of shares over the past 90 days.

StandardAero, Inc. (NYSE:SARO - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $23.78 and last traded at $23.76, with a volume of 844992 shares traded. The stock had previously closed at $24.22.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Weiss Ratings raised shares of StandardAero from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, June 29th. JPMorgan Chase & Co. upped their target price on StandardAero from $38.00 to $40.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. Sanford C. Bernstein reiterated an "outperform" rating on shares of StandardAero in a report on Monday, August 24th. Jefferies Financial Group cut StandardAero from a "buy" rating to a "hold" rating and lowered their price target for the company from $34.00 to $30.00 in a research note on Tuesday, June 2nd. Finally, Morgan Stanley set a $33.00 price objective on StandardAero in a report on Monday, August 10th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $34.77.

StandardAero Trading Down 2.4%

The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.59 and a current ratio of 2.13. The company has a 50-day simple moving average of $27.36 and a 200 day simple moving average of $27.12. The company has a market capitalization of $7.82 billion, a P/E ratio of 24.38 and a beta of 0.85.

StandardAero (NYSE:SARO - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $0.08. StandardAero had a net margin of 5.12% and a return on equity of 14.52%. The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same quarter in the previous year, the firm posted $0.20 earnings per share. StandardAero's revenue was up 4.6% compared to the same quarter last year. StandardAero has set its FY 2026 guidance at 1.500-1.570 EPS. Sell-side analysts expect that StandardAero, Inc. will post 1.51 earnings per share for the current year.

Insider Buying and Selling

In other StandardAero news, CEO Russell Ford sold 40,000 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $30.44, for a total value of $1,217,600.00. Following the completion of the sale, the chief executive officer owned 486,955 shares in the company, valued at approximately $14,822,910.20. This trade represents a 7.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last ninety days, insiders sold 191,423 shares of company stock valued at $5,847,760. Corporate insiders own 2.10% of the company's stock.

Institutional Trading of StandardAero

A number of institutional investors and hedge funds have recently modified their holdings of SARO. Comerica Bank bought a new position in StandardAero in the first quarter worth $26,000. Royal Bank of Canada raised its stake in shares of StandardAero by 418.8% in the 1st quarter. Royal Bank of Canada now owns 138,268 shares of the company's stock valued at $3,682,000 after buying an additional 111,617 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of StandardAero during the 1st quarter worth about $521,000. Goldman Sachs Group Inc. bought a new position in shares of StandardAero during the 1st quarter worth about $6,821,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of StandardAero during the 1st quarter valued at about $12,343,000.

StandardAero Company Profile

StandardAero is a global aerospace maintenance, repair and overhaul (MRO) provider specializing in gas turbine engines, auxiliary power units (APUs), airframe components and oil & gas rotating equipment. The company offers a full suite of technical services including engine repair and overhaul, component repair, accessory maintenance, parts manufacturing and on-site field support. Its customer base spans commercial airlines, business and general aviation operators, regional carriers, original equipment manufacturers (OEMs) and defense organizations.

With roots dating back to 1911, StandardAero has grown through strategic acquisitions and organic expansion to become one of the largest independent MRO providers in the industry.

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