Willis Lease Finance (NASDAQ:WLFC) Sets New 1-Year Low - What's Next?

Key Points

• Willis Lease Finance shares fell to a new 52-week low, reaching $36.39 during trading and last changing hands at $37.07. The stock is well below its 50-day and 200-day moving averages of $51.24 and $62.09, respectively.
• Analysts maintain a generally positive outlook, with an average “Moderate Buy” rating and a consensus price target of $75.50. Recent targets include $80 from Deutsche Bank and $71 from UBS.
• The company exceeded quarterly expectations, reporting $1.31 in earnings per share versus the $0.90 consensus and revenue of $192.83 million. However, insiders sold shares recently, and the quarterly dividend was slightly reduced to $0.1330 per share.

Willis Lease Finance Corporation (NASDAQ:WLFC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $36.39 and last traded at $37.07, with a volume of 168,347 shares. The stock had previously closed at $37.61.

Wall Street Analyst Weigh In

WLFC has been the topic of a number of recent research reports. Freedom Capital upgraded Willis Lease Finance from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 12th. Zacks Research upgraded shares of Willis Lease Finance to a "hold" rating in a report on Wednesday, September 9th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of Willis Lease Finance and gave the stock a "buy" rating in a research report on Tuesday, September 8th. Weiss Ratings lowered shares of Willis Lease Finance from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. Finally, UBS Group set a $71.00 price objective on shares of Willis Lease Finance in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Willis Lease Finance presently has an average rating of "Moderate Buy" and an average target price of $75.50.

Willis Lease Finance Price Performance

The firm has a 50-day simple moving average of $51.24 and a two-hundred day simple moving average of $62.09. The company has a market capitalization of $783.29 million, a price-to-earnings ratio of 8.86, a P/E/G ratio of 2.20 and a beta of 0.73. The company has a current ratio of 1.63, a quick ratio of 1.31 and a debt-to-equity ratio of 3.27.

Willis Lease Finance (NASDAQ:WLFC - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The transportation company reported $1.31 earnings per share for the quarter, beating analysts' consensus estimates of $0.90 by $0.41. The business had revenue of $192.83 million during the quarter, compared to analyst estimates of $175.00 million. Willis Lease Finance had a return on equity of 14.11% and a net margin of 11.80%. As a group, analysts predict that Willis Lease Finance Corporation will post 5.15 earnings per share for the current fiscal year.

Willis Lease Finance Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 21st. Stockholders of record on Tuesday, August 11th were paid a $0.1330 dividend. The ex-dividend date was Tuesday, August 11th. This is a negative change from Willis Lease Finance's previous quarterly dividend of $0.1333. This represents a $0.53 dividend on an annualized basis and a dividend yield of 1.4%. Willis Lease Finance's dividend payout ratio (DPR) is currently 13.28%.

Insider Buying and Selling

In other Willis Lease Finance news, Chairman Charles F. Iv Willis sold 15,600 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $55.11, for a total value of $859,716.00. Following the completion of the transaction, the chairman directly owned 2,492,143 shares of the company's stock, valued at approximately $137,342,000.73. The trade was a 0.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Scott B. Flaherty sold 8,326 shares of the business's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $53.56, for a total value of $445,940.56. Following the completion of the transaction, the executive vice president directly owned 214,324 shares of the company's stock, valued at $11,479,193.44. The trade was a 3.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 211,700 shares of company stock valued at $12,037,208 over the last ninety days. Company insiders own 53.32% of the company's stock.

Institutional Investors Weigh In On Willis Lease Finance

Hedge funds have recently bought and sold shares of the stock. State of Alaska Department of Revenue increased its holdings in shares of Willis Lease Finance by 299.4% during the 3rd quarter. State of Alaska Department of Revenue now owns 3,922 shares of the transportation company's stock valued at $195,000 after purchasing an additional 2,940 shares in the last quarter. Cetera Investment Advisers acquired a new position in shares of Willis Lease Finance in the 1st quarter valued at $220,000. Navellier & Associates Inc. acquired a new position in shares of Willis Lease Finance in the 2nd quarter valued at $229,000. Quantinno Capital Management LP acquired a new position in shares of Willis Lease Finance in the 1st quarter valued at $293,000. Finally, Capstone Investment Advisors LLC purchased a new stake in Willis Lease Finance during the second quarter worth $321,000. Hedge funds and other institutional investors own 93.70% of the company's stock.

About Willis Lease Finance

Willis Lease Finance Corporation NASDAQ: WLFC is an aviation services company that provides commercial aircraft engines, auxiliary power units, and related equipment to airlines, aircraft operators, maintenance providers, and other aviation customers. Its leasing activities include short- and long-term engine leasing, spare engine programs, and the financing and management of aviation assets.

The company also provides engine and component services, including maintenance, repair, and overhaul support; engine refurbishment and modification; parts sales; and technical and asset-management services.

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