Willis Lease Finance (NASDAQ:WLFC) Shares Down 4.1% - Here's What Happened

Key Points

• Willis Lease Finance shares fell 4.1% to $47.88 in thin trading, well below the company’s 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $75.50, despite mixed recent rating changes.
• The company exceeded quarterly expectations, reporting $1.31 in EPS and $192.83 million in revenue, but recently reduced its quarterly dividend and disclosed significant insider selling.

Willis Lease Finance Corporation (NASDAQ:WLFC - Get Free Report)'s share price fell 4.1% during mid-day trading on Friday. The company traded as low as $48.07 and last traded at $47.88. 2,196 shares changed hands during trading, a decline of 99% from the average session volume of 261,564 shares. The stock had previously closed at $49.91.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Freedom Capital raised shares of Willis Lease Finance from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 12th. UBS Group set a $71.00 target price on Willis Lease Finance in a research report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of Willis Lease Finance and gave the company a "buy" rating in a report on Tuesday, September 8th. Zacks Research raised shares of Willis Lease Finance to a "hold" rating in a research note on Wednesday, September 9th. Finally, Weiss Ratings downgraded Willis Lease Finance from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $75.50.

Willis Lease Finance Stock Performance

The company's 50-day simple moving average is $57.82 and its 200-day simple moving average is $63.49. The company has a current ratio of 1.63, a quick ratio of 1.31 and a debt-to-equity ratio of 3.27. The stock has a market capitalization of $1.01 billion, a price-to-earnings ratio of 12.06, a PEG ratio of 2.93 and a beta of 0.73.

Willis Lease Finance (NASDAQ:WLFC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The transportation company reported $1.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.90 by $0.41. The firm had revenue of $192.83 million for the quarter, compared to the consensus estimate of $175.00 million. Willis Lease Finance had a net margin of 11.80% and a return on equity of 14.11%. On average, analysts expect that Willis Lease Finance Corporation will post 5.15 EPS for the current year.

Willis Lease Finance Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Tuesday, August 11th were given a dividend of $0.1330 per share. This represents a $0.53 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, August 11th. This is a decrease from Willis Lease Finance's previous quarterly dividend of $0.1333. Willis Lease Finance's payout ratio is presently 13.28%.

Insider Buying and Selling at Willis Lease Finance

In other Willis Lease Finance news, CEO Austin Willis sold 15,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $53.90, for a total value of $808,500.00. Following the transaction, the chief executive officer directly owned 420,888 shares in the company, valued at approximately $22,685,863.20. This trade represents a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Scott B. Flaherty sold 18,695 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $54.57, for a total value of $1,020,186.15. Following the completion of the transaction, the executive vice president directly owned 222,650 shares of the company's stock, valued at approximately $12,150,010.50. This trade represents a 7.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 211,700 shares of company stock valued at $12,037,208. 53.32% of the stock is currently owned by company insiders.

Institutional Trading of Willis Lease Finance

A number of hedge funds and other institutional investors have recently bought and sold shares of WLFC. Navellier & Associates Inc. bought a new position in Willis Lease Finance during the 2nd quarter worth about $229,000. Cetera Investment Advisers bought a new stake in shares of Willis Lease Finance in the 1st quarter valued at about $220,000. Capstone Investment Advisors LLC purchased a new stake in shares of Willis Lease Finance in the 2nd quarter worth approximately $321,000. Jupiter Topco LLC purchased a new stake in shares of Willis Lease Finance in the 2nd quarter worth approximately $343,000. Finally, Concurrent Investment Advisors LLC bought a new position in shares of Willis Lease Finance during the second quarter valued at approximately $360,000. Hedge funds and other institutional investors own 93.70% of the company's stock.

Willis Lease Finance Company Profile

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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