Willis Lease Finance (NASDAQ:WLFC) Stock Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Willis Lease Finance shares moved above their 200-day moving average, reaching $70.91 and closing near $70.47, compared with the average of $65.03.
• Analysts have turned more cautious: both Weiss Ratings and Freedom Capital downgraded the stock to “Hold,” while the overall analyst consensus remains “Hold.”
• The company reported quarterly EPS of $1.34, beating estimates by $0.33, and revenue of $194.35 million versus expectations of $175 million. However, its dividend yield is modest at 0.8%, and the CEO recently sold shares while insiders retain 53.32% ownership.

Shares of Willis Lease Finance Corporation (NASDAQ:WLFC - Get Free Report) crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $65.03 and traded as high as $70.91. Willis Lease Finance shares last traded at $70.47, with a volume of 275,622 shares traded.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on WLFC. Weiss Ratings cut Willis Lease Finance from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 10th. Freedom Capital lowered shares of Willis Lease Finance from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of "Hold".

Willis Lease Finance Trading Up 2.1%

The company has a quick ratio of 2.00, a current ratio of 2.43 and a debt-to-equity ratio of 3.25. The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of 12.84 and a beta of 0.72. The business has a 50-day moving average of $69.27 and a two-hundred day moving average of $65.03.

Willis Lease Finance (NASDAQ:WLFC - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The transportation company reported $1.34 EPS for the quarter, beating the consensus estimate of $1.01 by $0.33. Willis Lease Finance had a return on equity of 19.22% and a net margin of 15.72%.The firm had revenue of $194.35 million during the quarter, compared to analysts' expectations of $175.00 million.

Willis Lease Finance Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Monday, May 11th were paid a $0.1333 dividend. This represents a $0.53 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, May 11th. Willis Lease Finance's dividend payout ratio is presently 9.65%.

Insider Buying and Selling

In other Willis Lease Finance news, CEO Austin Chandler Willis sold 15,552 shares of Willis Lease Finance stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $74.69, for a total transaction of $1,161,578.88. Following the sale, the chief executive officer owned 450,888 shares in the company, valued at $33,676,824.72. The trade was a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 53.32% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Willis Lease Finance

A number of hedge funds have recently made changes to their positions in WLFC. Four Tree Island Advisory LLC lifted its holdings in shares of Willis Lease Finance by 3.9% during the 4th quarter. Four Tree Island Advisory LLC now owns 102,259 shares of the transportation company's stock worth $13,870,000 after acquiring an additional 3,793 shares during the period. Two Sigma Investments LP increased its stake in Willis Lease Finance by 9.8% in the third quarter. Two Sigma Investments LP now owns 101,386 shares of the transportation company's stock valued at $13,899,000 after acquiring an additional 9,052 shares during the period. UBS Group AG raised its position in Willis Lease Finance by 15.0% in the third quarter. UBS Group AG now owns 92,194 shares of the transportation company's stock worth $12,639,000 after purchasing an additional 12,000 shares in the last quarter. Geode Capital Management LLC raised its position in Willis Lease Finance by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 73,452 shares of the transportation company's stock worth $9,965,000 after purchasing an additional 947 shares in the last quarter. Finally, Millennium Management LLC raised its position in Willis Lease Finance by 1,498.3% in the third quarter. Millennium Management LLC now owns 66,008 shares of the transportation company's stock worth $9,049,000 after purchasing an additional 61,878 shares in the last quarter. Institutional investors and hedge funds 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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