StandardAero (NYSE:SARO) Stock Breaks Above Fifty Day Moving Average on Analyst Downgrade

Key Points

• StandardAero shares rose 7%, trading above their 50-day moving average of $22.65 and reaching $24.12 after Wall Street Zen upgraded the stock from “hold” to “buy.”
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus rating and an average price target of $33.45, despite differing targets ranging from $25 to $36.
• The company recently beat quarterly expectations, reporting $0.40 in adjusted EPS versus a $0.32 consensus estimate and $1.60 billion in revenue, up 4.6% year over year; however, insiders have sold more than 112,000 shares over the past 90 days.

StandardAero, Inc. (NYSE:SARO - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Thursday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock has a 50 day moving average of $22.65 and traded as high as $24.12. StandardAero shares last traded at $23.7710, with a volume of 4,462,886 shares trading hands.

Several other brokerages also recently commented on SARO. Jefferies Financial Group set a $25.00 target price on shares of StandardAero in a report on Thursday, September 24th. UBS Group increased their target price on StandardAero from $35.00 to $36.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Morgan Stanley set a $33.00 price target on StandardAero in a research note on Monday, August 10th. Bank of America dropped their price target on StandardAero from $35.00 to $27.00 and set a "neutral" rating on the stock in a research note on Thursday, September 17th. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of StandardAero in a report on Monday, August 24th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat, StandardAero currently has an average rating of "Moderate Buy" and an average price target of $33.45.

Insider Activity

In other news, CEO Russell Ford sold 20,413 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $30.56, for a total value of $623,821.28. Following the sale, the chief executive officer owned 295,573 shares of the company's stock, valued at $9,032,710.88. The trade was a 6.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders have sold 112,203 shares of company stock valued at $3,437,527 in the last 90 days. 2.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On StandardAero

Several institutional investors and hedge funds have recently added to or reduced their stakes in SARO. MassMutual Private Wealth & Trust FSB boosted its stake in shares of StandardAero by 72.7% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 1,290 shares of the company's stock worth $28,000 after acquiring an additional 543 shares during the period. CX Institutional acquired a new position in shares of StandardAero during the 3rd quarter worth approximately $36,000. Northwestern Mutual Wealth Management Co. bought a new stake in StandardAero in the 2nd quarter valued at $55,000. Optiver Holding B.V. bought a new stake in StandardAero in the 1st quarter valued at $51,000. Finally, Nykredit A S bought a new stake in StandardAero in the 2nd quarter valued at $65,000.

StandardAero Stock Up 7.0%

The firm has a fifty day simple moving average of $22.65 and a 200-day simple moving average of $26.74. The firm has a market cap of $7.87 billion, a price-to-earnings ratio of 24.51 and a beta of 0.91. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.59 and a current ratio of 2.13.

StandardAero (NYSE:SARO - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.32 by $0.08. The firm had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.59 billion. StandardAero had a net margin of 5.12% and a return on equity of 14.52%. The company's quarterly revenue was up 4.6% on a year-over-year basis. During the same period in the previous year, the company earned $0.20 earnings per share. StandardAero has set its FY 2026 guidance at 1.500-1.570 EPS. As a group, sell-side analysts expect that StandardAero, Inc. will post 1.50 EPS for the current year.

About StandardAero

StandardAero is an aerospace maintenance, repair and overhaul (MRO) company that provides services for commercial and business aviation, military and government operators, and helicopter customers. The company supports aircraft throughout their operating life, helping customers maintain, repair, upgrade and return aircraft and components to service.

Its services include engine maintenance, repair and overhaul; airframe maintenance; avionics and electrical work; component and accessory repair; engineering; and aircraft modifications.

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