Willis Lease Finance (NASDAQ:WLFC) Shares Gap Down - Should You Sell?

Key Points

• Willis Lease Finance shares gapped down from a prior close of $63.92 to open at $61.02, later trading near $59.70. The decline puts the stock below its 50-day moving average of $70.74.
• Analyst sentiment remains mixed: Freedom Capital downgraded the stock to “hold,” while Weiss Ratings upgraded it to “buy.” Overall, analysts rate WLFC a “Moderate Buy.”
• The company exceeded quarterly expectations, reporting $1.31 in EPS versus $0.90 expected and revenue of $194.02 million versus $175 million forecast. However, the dividend yield is only 0.9%, and the CEO recently sold shares while insiders still own 53.32% of the company.

Willis Lease Finance Corporation (NASDAQ:WLFC - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $63.92, but opened at $61.02. Willis Lease Finance shares last traded at $59.6980, with a volume of 11,579 shares.

Wall Street Analysts Forecast Growth

WLFC has been the subject of several recent analyst reports. Freedom Capital lowered Willis Lease Finance from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Weiss Ratings upgraded shares of Willis Lease Finance from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy".

Willis Lease Finance Price Performance

The firm has a market cap of $1.24 billion, a PE ratio of 14.77 and a beta of 0.74. The firm's fifty day simple moving average is $70.74 and its two-hundred day simple moving average is $65.89. The company has a quick ratio of 1.31, a current ratio of 1.63 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 (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.41. The firm had revenue of $194.02 million for the quarter, compared to analysts' expectations of $175.00 million. Willis Lease Finance had a net margin of 11.80% and a return on equity of 14.11%.

Willis Lease Finance Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Shareholders of record on Tuesday, August 11th will be given a dividend of $0.133 per share. This represents a $0.53 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Tuesday, August 11th. Willis Lease Finance's payout ratio is 13.28%.

Insider Activity at Willis Lease Finance

In related news, CEO Austin Chandler Willis sold 15,552 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $74.69, for a total transaction of $1,161,578.88. Following the completion of the sale, the chief executive officer directly owned 450,888 shares of the company's stock, valued at approximately $33,676,824.72. This trade represents a 3.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 53.32% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in WLFC. Royal Bank of Canada boosted its holdings in shares of Willis Lease Finance by 1.8% in the first quarter. Royal Bank of Canada now owns 14,452 shares of the transportation company's stock valued at $2,283,000 after purchasing an additional 255 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Willis Lease Finance by 4.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,700 shares of the transportation company's stock valued at $269,000 after buying an additional 78 shares during the last quarter. Jane Street Group LLC purchased a new stake in Willis Lease Finance during the first quarter valued at approximately $563,000. Creative Planning acquired a new stake in shares of Willis Lease Finance in the 2nd quarter worth $223,000. Finally, JPMorgan Chase & Co. grew its stake in shares of Willis Lease Finance by 951.4% during the second quarter. JPMorgan Chase & Co. now owns 27,346 shares of the transportation company's stock worth $3,904,000 after acquiring an additional 24,745 shares during the last quarter. 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 independent global provider of aircraft engine leasing, trading and aftermarket services. Founded in 1991 and headquartered in the United States, the company specializes in offering short- and long-term operating leases for jet engines and auxiliary power units. Through its broad engine portfolio, Willis Lease Finance supports a wide range of commercial aircraft across various operators, including major airlines, regional carriers and other leasing companies.

In addition to leasing solutions, Willis Lease Finance offers comprehensive engine trading and asset management services.

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