StandardAero (NYSE:SARO) Shares Gap Down After Earnings Miss

Key Points

• StandardAero's share price dropped significantly, opening at $25.90 after a disappointing earnings report, missing the earnings per share estimate by $0.01.
• The company reported $1.53 billion in revenue for the quarter, exceeding estimates, and marked a 13.5% year-over-year increase in revenue.
• Analyst ratings for StandardAero show a mixed outlook, with some firms raising price targets while others adjusted their ratings, leading to an average rating of "Moderate Buy".

StandardAero, Inc. (NYSE:SARO - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $28.16, but opened at $25.90. StandardAero shares last traded at $26.35, with a volume of 464,148 shares.

The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.01). The company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.50 billion. The company's quarterly revenue was up 13.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.02 EPS.

Analyst Ratings Changes

A number of research firms have recently commented on SARO. UBS Group lifted their price target on StandardAero from $25.00 to $30.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 13th. Wall Street Zen lowered StandardAero from a "buy" rating to a "hold" rating in a research note on Saturday, June 14th. Finally, CIBC lowered their price objective on shares of StandardAero from $35.00 to $34.00 and set an "outperformer" rating for the company in a research report on Tuesday, July 8th. Four analysts have rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $34.67.

Insiders Place Their Bets

In related news, major shareholder Private Ltd Gic sold 828,729 shares of StandardAero stock in a transaction on Thursday, May 29th. The stock was sold at an average price of $27.30, for a total value of $22,624,301.70. Following the transaction, the insider directly owned 34,463,633 shares in the company, valued at $940,857,180.90. The trade was a 2.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.90% of the stock is owned by insiders.

Hedge Funds Weigh In On StandardAero

Several large investors have recently added to or reduced their stakes in SARO. Comerica Bank acquired a new stake in shares of StandardAero in the 1st quarter valued at $26,000. Bessemer Group Inc. acquired a new position in StandardAero during the fourth quarter worth approximately $28,000. Corebridge Financial Inc. boosted its holdings in shares of StandardAero by 46.8% during the first quarter. Corebridge Financial Inc. now owns 1,079 shares of the company's stock worth $29,000 after acquiring an additional 344 shares during the period. GAMMA Investing LLC grew its holdings in shares of StandardAero by 272.3% during the 1st quarter. GAMMA Investing LLC now owns 1,128 shares of the company's stock worth $30,000 after purchasing an additional 825 shares in the last quarter. Finally, First Horizon Advisors Inc. lifted its stake in StandardAero by 100.4% during the second quarter. First Horizon Advisors Inc. now owns 1,016 shares of the company's stock worth $32,000 after purchasing an additional 509 shares during the last quarter.

StandardAero Price Performance

The company has a quick ratio of 1.37, a current ratio of 2.00 and a debt-to-equity ratio of 0.95. The stock has a fifty day moving average of $29.70 and a two-hundred day moving average of $28.06.

About StandardAero

StandardAero, Inc provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets.

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