Royal Bank Of Canada Reaffirms "Outperform" Rating for AAR (NYSE:AIR)

Key Points

• The Royal Bank of Canada has reaffirmed an "outperform" rating for AAR Corp (NYSE:AIR) and set a target price of $85.00, indicating a potential upside of 5.68% from its current price.
• AAR reported strong quarterly earnings with an EPS of $1.08, exceeding estimates and showing an 11.8% increase in revenue year-over-year.
• Insider transactions showed significant stock sales, with Director Jennifer L. Vogel and CEO John Mcclain Holmes III selling thousands of shares, indicating a 23.36% and 3.24% decrease in their positions, respectively.

AAR (NYSE:AIR - Get Free Report)'s stock had its "outperform" rating reaffirmed by equities research analysts at Royal Bank Of Canada in a report released on Wednesday,Benzinga reports. They presently have a $85.00 target price on the aerospace company's stock. Royal Bank Of Canada's price objective suggests a potential upside of 5.68% from the stock's current price.

A number of other equities research analysts have also issued reports on AIR. Wall Street Zen lowered shares of AAR from a "buy" rating to a "hold" rating in a report on Saturday. KeyCorp increased their price objective on AAR from $80.00 to $86.00 and gave the company an "overweight" rating in a research note on Thursday, July 17th. Finally, Truist Financial boosted their target price on AAR from $78.00 to $81.00 and gave the stock a "buy" rating in a research note on Friday, July 11th. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $83.75.

AAR Trading Up 2.7%

AAR stock traded up $2.08 during trading on Wednesday, hitting $80.43. The company had a trading volume of 310,535 shares, compared to its average volume of 320,324. The stock has a market cap of $2.89 billion, a price-to-earnings ratio of 241.35 and a beta of 1.50. The company has a current ratio of 2.72, a quick ratio of 1.26 and a debt-to-equity ratio of 0.80. AAR has a 1-year low of $46.51 and a 1-year high of $86.43. The company's 50 day simple moving average is $75.90 and its 200-day simple moving average is $67.05.

AAR (NYSE:AIR - Get Free Report) last released its quarterly earnings results on Tuesday, September 23rd. The aerospace company reported $1.08 EPS for the quarter, topping the consensus estimate of $0.98 by $0.10. AAR had a return on equity of 11.66% and a net margin of 0.45%.The business had revenue of $739.60 million during the quarter, compared to analyst estimates of $692.47 million. During the same period last year, the business posted $0.50 earnings per share. The company's quarterly revenue was up 11.8% on a year-over-year basis. AAR has set its Q2 2026 guidance at EPS. As a group, analysts expect that AAR will post 3.77 EPS for the current fiscal year.

Insider Transactions at AAR

In other news, Director Jennifer L. Vogel sold 7,000 shares of AAR stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $78.07, for a total value of $546,490.00. Following the transaction, the director directly owned 22,970 shares of the company's stock, valued at $1,793,267.90. The trade was a 23.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO John Mcclain Holmes III sold 10,000 shares of the firm's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $71.70, for a total transaction of $717,000.00. Following the transaction, the chief executive officer directly owned 298,603 shares in the company, valued at $21,409,835.10. The trade was a 3.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 95,182 shares of company stock valued at $7,331,452 over the last quarter. Company insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On AAR

Hedge funds and other institutional investors have recently made changes to their positions in the stock. State Street Corp increased its position in AAR by 10.9% in the 2nd quarter. State Street Corp now owns 1,917,821 shares of the aerospace company's stock valued at $131,927,000 after acquiring an additional 188,406 shares during the period. Westwood Holdings Group Inc. increased its holdings in shares of AAR by 10.3% in the first quarter. Westwood Holdings Group Inc. now owns 1,589,320 shares of the aerospace company's stock valued at $88,986,000 after purchasing an additional 148,166 shares during the period. Fred Alger Management LLC raised its stake in shares of AAR by 32.6% during the first quarter. Fred Alger Management LLC now owns 533,770 shares of the aerospace company's stock worth $29,886,000 after purchasing an additional 131,092 shares during the last quarter. Nuveen LLC acquired a new stake in shares of AAR during the first quarter worth $6,226,000. Finally, Invesco Ltd. increased its stake in AAR by 8.4% in the 1st quarter. Invesco Ltd. now owns 1,160,420 shares of the aerospace company's stock valued at $64,972,000 after buying an additional 89,802 shares during the period. Hedge funds and other institutional investors own 90.74% of the company's stock.

AAR Company Profile

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes.

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