William Blair Issues Pessimistic Outlook for AAON Earnings

AAON, Inc. (NASDAQ:AAON - Free Report) - Equities research analysts at William Blair reduced their Q2 2025 earnings per share (EPS) estimates for AAON in a research note issued to investors on Thursday, May 1st. William Blair analyst R. Merkel now anticipates that the construction company will earn $0.51 per share for the quarter, down from their previous forecast of $0.60. The consensus estimate for AAON's current full-year earnings is $2.26 per share. William Blair also issued estimates for AAON's Q3 2025 earnings at $0.77 EPS, Q4 2025 earnings at $0.64 EPS, Q3 2026 earnings at $0.91 EPS, FY2026 earnings at $3.23 EPS and FY2027 earnings at $4.22 EPS.

Several other brokerages have also recently weighed in on AAON. DA Davidson decreased their price target on AAON from $150.00 to $125.00 and set a "buy" rating for the company in a research note on Friday, February 28th. Robert W. Baird decreased their target price on shares of AAON from $155.00 to $116.00 and set an "outperform" rating for the company in a research report on Friday, February 28th. StockNews.com downgraded shares of AAON from a "hold" rating to a "sell" rating in a research report on Friday, February 28th. Finally, CJS Securities upgraded shares of AAON from a "market perform" rating to an "outperform" rating and set a $110.00 price objective for the company in a research report on Friday, February 28th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $115.50.

AAON Trading Down 1.7 %

NASDAQ AAON traded down $1.61 on Monday, reaching $95.83. The company had a trading volume of 1,130,305 shares, compared to its average volume of 722,793. The firm has a market cap of $7.79 billion, a price-to-earnings ratio of 42.22 and a beta of 1.06. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.06 and a quick ratio of 1.79. AAON has a fifty-two week low of $68.98 and a fifty-two week high of $144.07. The business has a 50 day moving average of $82.27 and a two-hundred day moving average of $108.29.

AAON (NASDAQ:AAON - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The construction company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.13. The firm had revenue of $322.05 million during the quarter, compared to the consensus estimate of $289.16 million. AAON had a net margin of 15.78% and a return on equity of 24.98%. The company's revenue for the quarter was up 22.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.46 earnings per share.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in AAON. PNC Financial Services Group Inc. raised its position in shares of AAON by 6.7% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,868 shares of the construction company's stock worth $455,000 after purchasing an additional 244 shares during the period. Avior Wealth Management LLC raised its holdings in AAON by 5,040.4% during the fourth quarter. Avior Wealth Management LLC now owns 2,416 shares of the construction company's stock worth $284,000 after buying an additional 2,369 shares during the last quarter. SG Americas Securities LLC raised its holdings in AAON by 691.1% during the fourth quarter. SG Americas Securities LLC now owns 24,666 shares of the construction company's stock worth $2,903,000 after buying an additional 21,548 shares during the last quarter. Caldwell Investment Management Ltd. bought a new position in shares of AAON in the fourth quarter valued at $1,099,000. Finally, JPMorgan Chase & Co. grew its holdings in shares of AAON by 4.8% during the third quarter. JPMorgan Chase & Co. now owns 3,260,526 shares of the construction company's stock valued at $351,615,000 after buying an additional 150,207 shares during the last quarter. Institutional investors own 70.81% of the company's stock.

Insider Buying and Selling

In other news, Director David Raymond Stewart bought 1,000 shares of AAON stock in a transaction dated Wednesday, March 5th. The stock was bought at an average cost of $80.86 per share, for a total transaction of $80,860.00. Following the purchase, the director now directly owns 3,000 shares in the company, valued at approximately $242,580. This represents a 50.00 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 18.70% of the stock is owned by insiders.

AAON Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 28th. Investors of record on Tuesday, March 18th were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.42%. The ex-dividend date was Tuesday, March 18th. This is an increase from AAON's previous quarterly dividend of $0.08. AAON's payout ratio is presently 21.05%.

AAON declared that its Board of Directors has authorized a stock buyback plan on Tuesday, March 4th that allows the company to repurchase $30.00 million in outstanding shares. This repurchase authorization allows the construction company to buy up to 0.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

About AAON

AAON, Inc, together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.