AAR Corp. (AIR) Lifted to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of AAR Corp. (NYSE:AIR) from a sell rating to a hold rating in a research note released on Friday.
According to Zacks, “AAR Corp.’s first-quarter fiscal 2018 earnings were in line with the Zacks Consensus Estimate, while revenues surpassed the consensus. The company is the largest independent maintenance, repair and overhaul (MRO) provider in North America. Moving ahead, rising air traffic is expected to accelerate maintenance spending on aircraft significantly and drive MRO services growth cycle. Moreover, buoyed by its strong capital deployment activities, AAR Corp.’s share price outperformed the broader industry. However, the company operates in a highly competitive space and is subject to stringent government regulations. Any negative revision in the defense budget candampen its top line. Again, a comparative analysis of the company’s P/E ratio reflects a relatively gloomy picture that might be a cause for investors.”
Several other research analysts have also recently issued reports on the company. BidaskClub raised AAR Corp. from a sell rating to a hold rating in a research report on Thursday, July 6th. Noble Financial reaffirmed a buy rating on shares of AAR Corp. in a research report on Thursday, July 13th. Seaport Global Securities initiated coverage on AAR Corp. in a research report on Tuesday, September 12th. They set a neutral rating and a $39.00 price objective for the company. Finally, Canaccord Genuity initiated coverage on AAR Corp. in a research report on Wednesday, September 6th. They set a hold rating and a $40.00 price objective for the company. One analyst has rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company. The stock has a consensus rating of Hold and an average target price of $44.71.
Shares of AAR Corp. (AIR) opened at 36.94 on Friday. The firm has a 50-day moving average price of $35.81 and a 200-day moving average price of $35.09. AAR Corp. has a 1-year low of $28.96 and a 1-year high of $39.31. The stock has a market capitalization of $1.26 billion, a PE ratio of 22.20 and a beta of 1.39.
AAR Corp. (NYSE:AIR) last released its quarterly earnings data on Tuesday, September 19th. The aerospace company reported $0.31 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.31. The business had revenue of $439.20 million during the quarter, compared to analysts’ expectations of $410.52 million. AAR Corp. had a return on equity of 5.66% and a net margin of 3.20%. The business’s quarterly revenue was up 8.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.29 EPS. On average, equities research analysts forecast that AAR Corp. will post $1.74 earnings per share for the current year.
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AAR Corp. announced that its board has authorized a stock buyback plan on Tuesday, July 11th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the aerospace company to repurchase up to 20.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.
In other news, Director Ronald B. Woodard sold 20,000 shares of the business’s stock in a transaction dated Thursday, July 13th. The stock was sold at an average price of $37.22, for a total value of $744,400.00. Following the completion of the sale, the director now directly owns 20,073 shares of the company’s stock, valued at approximately $747,117.06. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Robert J. Regan sold 28,640 shares of the business’s stock in a transaction dated Tuesday, July 25th. The shares were sold at an average price of $36.53, for a total value of $1,046,219.20. Following the completion of the sale, the vice president now directly owns 114,193 shares of the company’s stock, valued at $4,171,470.29. The disclosure for this sale can be found here. Insiders sold a total of 91,840 shares of company stock valued at $3,401,115 over the last three months. Company insiders own 9.33% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Bank of Montreal Can raised its stake in AAR Corp. by 10.1% during the 1st quarter. Bank of Montreal Can now owns 3,371 shares of the aerospace company’s stock valued at $114,000 after acquiring an additional 309 shares during the last quarter. Great West Life Assurance Co. Can raised its stake in AAR Corp. by 6.8% during the 1st quarter. Great West Life Assurance Co. Can now owns 44,060 shares of the aerospace company’s stock valued at $1,481,000 after acquiring an additional 2,821 shares during the last quarter. State Board of Administration of Florida Retirement System raised its stake in AAR Corp. by 15.9% during the 1st quarter. State Board of Administration of Florida Retirement System now owns 33,395 shares of the aerospace company’s stock valued at $1,123,000 after acquiring an additional 4,592 shares during the last quarter. First Trust Advisors LP raised its stake in AAR Corp. by 25.3% during the 1st quarter. First Trust Advisors LP now owns 62,936 shares of the aerospace company’s stock valued at $2,117,000 after acquiring an additional 12,701 shares during the last quarter. Finally, Advisors Asset Management Inc. raised its stake in AAR Corp. by 132.0% during the 1st quarter. Advisors Asset Management Inc. now owns 17,747 shares of the aerospace company’s stock valued at $597,000 after acquiring an additional 10,097 shares during the last quarter. 87.44% of the stock is owned by institutional investors and hedge funds.
About AAR Corp.
AAR CORP. (AAR) is a provider of services and products to the commercial aviation and government and defense markets. The Company operates in two segments: Aviation Services, which consists of supply chain and maintenance, repair and overhaul (MRO) activities, and Expeditionary Services, which includes airlift and mobility activities.
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